Tata Motors has outlined an ambitious growth strategy for its commercial vehicle business, targeting annual sales of more than one million units following the proposed acquisition of Italy-based Iveco Group. Chairman N. Chandrasekaran said the combined business would begin with an annual sales volume of around 600,000 commercial vehicles and is well positioned to cross the one million mark over the coming years.

Speaking at the company's annual general meeting, Chandrasekaran said the acquisition, which is awaiting final regulatory approvals and is expected to close during the second quarter of the current financial year, will significantly strengthen Tata Motors' global commercial vehicle business. The integration is expected to provide access to advanced powertrain technologies, next-generation mobility solutions, a broader manufacturing footprint, and an expanded international product portfolio.

The company expects the combined entity to rank among the world's four largest commercial vehicle manufacturers, enhancing its competitiveness across key global markets through greater scale, operational efficiencies, and product diversification.

Tata Motors Commercial Vehicles also reported its strongest financial performance since becoming an independently listed company following the demerger of the commercial vehicle business in November 2025. During FY26, the company retained its leadership in the domestic commercial vehicle market, with sales exceeding 435,000 units, representing a 13 percent year-on-year increase.

Revenue increased 9.8 percent to a record Rs 83,855 crore, while EBITDA margin improved to 12.3 percent. Return on capital employed stood at 72.3 percent, reflecting strong operational efficiency and profitability.

The board has recommended a final dividend of Rs 4 per share for FY26.

The company also continued to diversify its revenue base by expanding higher-margin non-cyclical businesses such as spares and services, which recorded 18.2 percent growth during the year. Its electric mobility business expanded further, with Tata Motors Smart City Mobility Solutions deploying more than 3,800 electric buses across 10 cities, collectively covering over 500 million kilometres with operational uptime exceeding 95 percent.

Meanwhile, the Fleet Edge connected vehicle platform surpassed one million connected vehicles, while the Fleet Verse digital commerce platform continued to gain traction. International operations recorded 53.9 percent growth during FY26, supported by stronger market penetration and major order wins, further reinforcing the company's global expansion strategy ahead of the planned Iveco integration.