Tata Motors Eyes $4.5 Billion Iveco Truck Buyout; Stock Tanks Over 4% On July 30; Time to Accumulate or Avoid?

Tata Motors shares came under pressure on Wednesday, July 30, after CNBC-TV18 reported that the company is in advanced talks to acquire Italy-based Iveco Group's truck business for a huge USD 4.5 billion from the Agnelli family. The news led to a sharp sell off in the counter soon after the stock opened this morning.

Tata Motors Share Price

After the acquisition buzz, Tata Motors share price fell over 4% intraday before paring some losses. At the time of writing, the stock was trading at Rs 669.75, down 3.26% on the NSE. Tata Motors shares had been trading rangebound over the last five sessions, but this development injected fresh volatility into the counter.

So far in 2025, Tata Motors stock has dropped 10.6%, while it is down about 42% over the past 12 months. The stock currently trades 43.23% below its 52-week high.

Tata Motors-Iveco Deal Could Be One of Tata Group's Biggest

According to sources cited by CNBC-TV18, Tata Motors may acquire Iveco Group's commercial and defence truck business, making it one of the Tata Group's largest acquisitions ever. If finalised, the deal would be the biggest buyout by Tata Motors since its $2.3 billion acquisition of Jaguar Land Rover in 2008.

"While no official confirmation has been provided by Tata Motors yet, Iveco Group has acknowledged ongoing talks related to the divestment of its truck operations, including military and commercial vehicles" the report stated.

Tata Motors Q1 FY26 Sales Report

On the fundamental front, Tata Motors has reported a decline in sales for the first quarter of FY26. The company sold 2,10,415 units in Q1 FY26 across domestic and international markets, down from 2,29,891 units in Q1 FY25, an 8% year-on-year drop.

The domestic sales were down 10% to 203,411 units, while the total CV sales fell 6% YoY to 85,606 units. The passenger vehicle sales, on the other hand, declined by 10% YoY to 1,24,809 units.

In June 2025, domestic MH&ICV sales stood at 12,871 units, down from 14,640 units in June 2024. Total MH&ICV sales (domestic + international) in Q1 FY26 were 40,401 units, a slight drop from 41,974 units in the same period last year.

Market Outlook & Tata Motors Share Price Target

The potential acquisition of Iveco comes at a time when Tata Motors is seeing demand moderation and rising competition across both its passenger vehicle and commercial vehicle segments. Despite near-term pressures, analysts are cautiously optimistic.

According to a recent report by Deven Choksey Research, the brokerage firm has maintained an "Accumulate" rating on Tata Motors stock following the Q1 FY26 results. The report suggests an upside potential of 16% from current levels, with a target price of Rs. 799 per share.

The report stated that Jaguar Land Rover (JLR) reported wholesale volumes of 87,286 units in Q1 FY26, a decline of 10.7% year-on-year (YoY) and 21.7% quarter-on-quarter (QoQ). The drop reflects the planned phase-out of legacy Jaguar models and the impact of new U.S. import tariffs. The analysts believe that the near-term outlook for the stock may remain muted.

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