Iveco, which is part of the Fiat Group, tries for the second time to enter the fast-growing Indian truck market.
“The only way to be successful in India is to have a strong local partner. India is one of the important markets in world; it is the topmost on my priority list,” said CEO Alfredo Altavilla.
Until 2006 Iveco had a 15% stake in Ashok Leyland, India’s second-largest truck maker, but it sold its share to Hinduja Group, for 600 crore. In 2007 Iveco signed a memorandum of understanding with Tata Motors to develop, manufacture, source and distribute products, components and aggregates. Unfortunately the memorandum did not become a formal agreement as the two companies did not find common synergies for their plans.
“I think, Tata already has an extensive line up of products; they will keep on playing by themselves, it is my personal assumption,” said Altavilla.
He also added that Iveco is continuously in talks with companies and that there are many in India of interest for them. India is the 4th largest truck market on its way to surpass the US and take the 3rd place in the following years, increasing at a compounded annual rate of 8-10% in the next 5 years.