Tata Motors Ltd Chairman N Chandrasekaran
Tata Motors Ltd Chairman N Chandrasekaran on Monday said the proposed acquisition of Iveco Group is expected to be completed by the second quarter of FY27, subject to regulatory approvals and customary closing conditions.Responding to shareholder queries, Chandrasekaran said: “We hope it will get completed in the second quarter of the current year.. There are significant synergies.” He said the combined revenues of Tata Motors Ltd and Iveco Group currently stand at around $25 billion and are expected to grow to $35-40 billion over the next five years.The transaction will be funded through a mix of debt and internal cash, with the debt expected to be serviced and repaid through Iveco Group’s future cash flows. “We’re not looking for, at this point in time, any equity raise,” he added.Chandrasekaran said the acquisition will expand Tata Motors’ product portfolio and international footprint while creating opportunities to share technologies, undertake joint R&D and strengthen distribution across global markets.Turning to cybersecurity, Chandrasekaran said Tata Motors will continue investing heavily in artificial intelligence-led cyber defences as attacks become more frequent across industries.“Cybersecurity has already impacted group companies. This is an area we continue to invest heavily in across the group because this threat is only going to increase,” he said, adding that the company was already using AI as part of its cybersecurity efforts.The remarks come days after Bajaj Auto disclosed a ransomware attack on its systems and months after Jaguar Land Rover, another Tata Group company, suffered a cyberattack that disrupted production, highlighting the growing cyber risks confronting automakers.Future technologies remain investment priorityChandrasekaran said Tata Motors will continue to spend 2-4 per cent of annual revenue on capital expenditure, with around 55 per cent of that investment earmarked for future technologies. Spending will remain at the lower end when upgrading existing vehicle platforms and move higher during major product and technology programmes.He said the company’s investment programme, including the Iveco acquisition, will be funded through internal accruals over the next three to four years, with no plans to raise fresh equity.
