“Customers Swear by Their Quality—We’ll Bring Scale, Capital, and Integration” — Arvind Goel on Recent IAC Acquisitions

In a strategic move aimed at strengthening its global footprint in the rapidly evolving automotive interiors sector, Tata AutoComp Systems Ltd. has acquired the assets of IAC Sweden and IAC Asterix UK. The acquisitions mark a significant push into the premium segment of vehicle interiors, expanding the company’s customer base and opening new avenues for cross-selling its broad component portfolio.

"Interiors have always been a core strength for Tata AutoComp," said Arvind Goel, Vice Chairman of Tata AutoComp. "We’ve always had a strong focus on interiors and exteriors. That’s why we have two dedicated plants in China for interior systems. For a while, we slowed down a bit in this area because we were concentrating heavily on electrification. However, when the opportunity arose to acquire the assets of IAC in Sweden, we saw a strategic fit.

Two Strategic Acquisitions with a Strong Customer base

Tata AutoComp Systems Ltd. has strategically expanded its global footprint with the acquisition of two major European automotive interior suppliers—Artifex Interior Systems in the UK and IAC Sweden. The company acquired an 80% stake in Artifex (formerly IAC UK) through Jaguar Land Rover Ventures of £77 million, with a potential deferred payment of £6.3 million.

Artifex, with manufacturing sites in Elmdon, Scunthorpe, and Halewood, supplies premium interior components to OEMs including Jaguar Land Rover, BMW Mini, Bentley, INEOS, and Toyota. With advanced capabilities in plastic molding, slush molding, lamination, leather wrapping, and precision assembly, Artifex reported FY25 revenues of £296 million (₹3,182 crore) and employs approximately 1,800 professionals.

In parallel, Tata AutoComp also acquired IAC Sweden, which was previously part of the International Automotive Components Group and had entered bankruptcy proceedings in June 2024. 

IAC Sweden specializes in high-content interior systems, including instrument panels, door panels, and center consoles, serving OEMs such as Volvo Cars, Volvo Trucks, and Scania. 

The company operates manufacturing and engineering facilities across Sweden and has core competencies in injection molding, surface decoration, and trim assembly. IAC Sweden reported a turnover of approximately $800 million (₹6,382 crore). 

Together, the two acquisitions are expected to add nearly Rs 10,000 crore in annual revenue, substantially strengthening Tata AutoComp’s presence in Europe and enhancing its ability to offer localized, value-added interior solutions to global automotive customers.

The Swedish business brings Tata AutoComp closer to marquee clients like Volvo Cars, Volvo Trucks, and Scania—OEMs that dominate both the passenger and commercial segments in the European market. “These assets are positioned at the higher end of the market,” Goel pointed out, “and that made the acquisition even more compelling.”

The Interior business accounts for over 25-27% of Tata AutoComp’s overall turnover, and this share is set to get a further boost.

A Business Fit for the Future of Mobility

The timing is also strategic. As global mobility transitions to electric, software-defined, and eventually autonomous vehicles, the role of interiors is rapidly changing—from being functional to being experiential.

"Whether a vehicle is electric, hybrid, or software-defined, the importance of interiors only grows," Goel said. "With autonomous vehicles, interiors become even more central. As the driver’s role reduces, people will want to use that time to either relax or work—maybe on a laptop or mobile device. Interiors will become an increasingly important differentiator."

He cites China’s bold interior design innovations as a glimpse of what’s to come in Europe and the US. “What is happening in China will increasingly influence Europe and the US. And we are well-positioned for that,” he added, pointing to the company’s expanding engineering capabilities in China, India, and Europe.

Integration and Synergies

The Swedish acquisition was made through the bankruptcy court, raising questions about the financial and operational health of the entities. Goel remains unfazed. "Yes, there are some challenges, but we have a clear integration strategy," he said.

Tata AutoComp plans to utilize its engineering centers in India for backend and cost-efficient operations, while advanced engineering work will continue in Europe and the UK. “We’ll also examine components currently being sourced from third parties, many of which can be supplied by Tata AutoComp, either from India or China. So there are multiple synergies possible.”

The company is also prepared to inject cash where needed to stabilize operations. “We will put cash in the company so that it runs more smoothly,” Goel said. Notably, customer loyalty remains strong: “Even JLR has told us the quality and processes are world-class and unmatched.”

“The customer base is very supportive—they want this business to succeed and are willing to stand by us during the transition."

A Bet Backed by Brand and Trust

Ultimately, Goel believes Tata AutoComp’s reputation and strategic clarity give it an edge in turning around the newly acquired businesses. “When customers are ready to support you on all aspects—new business, pricing, everything—it gives you the confidence to move forward,” he said. “Someone has to step in and take the lead. And the Tata brand is stronger than most.”

As the global auto industry races toward electrification and autonomy, Tata AutoComp’s expanded interior capabilities may well become a central pillar of its future growth—integrated, innovative, and built on trust.