Tata Motors evaluates local manufacturing of Iveco products: Chandrasekaran

Tata Sons Chairman N Chandrasekaran on Tuesday said Tata Motors was identifying Iveco products that could have relevance in India and would localise the products in the country according to news agency PTIThere are specific products of the Iveco group which will have a lot of relevance in India And we are already identifying those products Obviously those products will have to be localised in India At least to start with in a semiknockdown manufacturing he saidTata Motors had recently acquired controlling stake in Iveco Group excluding the defence business with over 89 per cent stake making the Italian firm an indirect subsidiaryHe expects significant growth in volumes revenues and margins over the next five years of the combined business of Tata Motors and Italian commercial vehicle maker Iveco GroupLeverage complementary geographical presenceChandrasekaran said Tata Motors Commercial Vehicles and Iveco would leverage the complementary geographical presence product portfolios and technological capabilities to drive growth during a press conference in Turin ItalyAccording to him the two companies would have a strong presence in India Europe and Latin America besides growing their footprint in Asia and Africa offering significant opportunities across markets and product segmentsThe two companies in a statement said Complementary portfolios and geographic strengths create a truly global enterprise with presence in over 130 countries across key developed and highgrowth markets in Europe India South America Asia the Middle East and Africa and combined revenues of 21 billion euros about Rs 228000 croreNoting that the commercial vehicle industry was poised for significant transformation driven by decarbonisation new powertrains connected vehicles softwaredefined vehicles and artificial intelligence Chandrasekaran said that the two companies would combine their engineering research and technology capabilities to develop future products He added that they would leverage the complementary geographical presence product portfolios and technological capabilities to drive growthVolumes to increase in next five yearsThe way to look at it is that the combined company Tata Motors Commercial Vehicles and Iveco Group will produce currently the vehicles of the order close to 600000 units and the combined revenue is of the order of 24 billion US dollars and both companies are profitable and both companies are cash generating Chandrasekaran saidWithout divulging specific business plan the Tata Sons Chairman said the company expects volumes to increase over the next five years alongside significant growth in revenues and an improvement in marginsSo it is a combination that is going to be growthoriented And we have multiple jewels between the two companies It just should not be seen as only trucks There are trucks there are buses and there are special vehicles for different needs whether it is mining construction or a variety of other needs he saidAnd also there is a digital business there is an engine business and there are multiple growth engines he addedCombined entity fourth largest CV manufacturerChandrasekaran pointed out that the combined entity is the worlds fourthlargest commercial vehicle manufacturer The combined entity has a workforce of over 70000 employees operations across more than 130 countries and a global network of around 9300 sales and service outletsThis should not be seen as a consolidation effort This is about the future So we have two iconic companies coming together to create a growthoriented future he saidWith inputs from PTI