Recent acquisitions deepen Tata AutoComp’s European footprint, supporting its global expansion and localization strategy. The two global interior suppliers may potentially boost turnover by Rs 10000 crore.
30 Mar 2025 | 6541 Views | By Autocar Professional Bureau
Tata AutoComp Systems Ltd. (TACO), a leading Indian automotive components manufacturer and part of the Tata Group, has announced the acquisition of an 80% stake in Artifex Interior Systems Limited, formerly known as IAC UK. The acquisition was made through Jaguar Land Rover Ventures Limited (JLRV), a wholly-owned subsidiary of ...
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Tata AutoComp Systems Ltd. (TACO), a leading Indian automotive components manufacturer and part of the Tata Group, has announced the acquisition of an 80% stake in Artifex Interior Systems Limited, formerly known as IAC UK. The acquisition was made through Jaguar Land Rover Ventures Limited (JLRV), a wholly-owned subsidiary of Jaguar Land Rover Limited, itself a subsidiary of Tata Motors Limited.
The transaction was completed on March 28, 2025. Tata AutoComp paid GBP 77 million (approximately Rs 827 crore) as consideration for the 80% shareholding and may pay an additional GBP 6.3 million (approximately Rs 68 crore) in deferred consideration, subject to specified conditions. Following the transaction, both JLRV and Artifex Interior Systems Limited cease to be subsidiaries of Tata Motors Limited.
This follows Tata AutoComp’s acquisition of IAC Sweden, announced earlier in the month. IAC Sweden, previously part of the International Automotive Components (IAC) Group, had filed for bankruptcy in June 2024 and was under the administration of a Swedish bankruptcy court at the time of acquisition.
Artifex reported a revenue of GBP 296 million Rs. 3,182 crore) for FY24-25, contributing 0.98% to Tata Motors Limited’s consolidated revenue. Its net worth stood at GBP 14 million (Rs.150 crore), or 0.16% of the consolidated net worth. The company operates manufacturing facilities in Elmdon, Scunthorpe, and Halewood, employing approximately 1,800 professionals. Artifex supplies interior components to Jaguar Land Rover, BMW Mini, Bentley, INEOS, and Toyota.
Technologies used include plastic molding, lamination, slush molding, sewing, leather wrapping, and high-precision assembly. Artifex produces instrument panels, consoles, headliners, door trims, gloveboxes, pillars, armrests, and rear environment components.
Commenting on the acquisition, Arvind Goel, Vice Chairman of Tata AutoComp Systems, said, “We are pleased to welcome Artifex into the Tata AutoComp family. This acquisition aligns with our strategic vision of expanding our global footprint and strengthening our expertise in automotive interior systems. Artifex’s advanced manufacturing capabilities and established customer relationships will enhance our presence in key markets, enabling us to deliver differentiated solutions and drive long-term growth.”
Manoj Kolhatkar, MD & CEO of Tata AutoComp Systems, added, “Artifex's technical expertise and advanced manufacturing capabilities enhance our technological leadership, strengthening our presence in the premium automotive segment.”
M&A’s may potentially add revenues of over Rs 10000 crore
The acquisition of Artifex and IAC Sweden is part of Tata AutoComp’s strategy to grow its presence in the global automotive interior systems market, especially in Europe. With this acquisition, Tata AutoComp has gained access to localized engineering talent and proximity to long-standing OEM relationships in the region.
Apart from the incremental revenues that Artefix generates, IAC Sweden reported a turnover of approximately $800 million, or Rs 6,382 crore. Therefore, these two acquisitions would potentially add approximately Rs 10,000 crore in turnover to Tata AutoComp.
IAC Sweden supplies interior components, including instrument panels, door panels, and center consoles, to several original equipment manufacturers (OEMs) in Europe. It operates manufacturing and engineering facilities in Sweden, serving a customer base that includes Volvo and Scania.
The company possesses core capabilities in advanced injection molding, surface decoration, and trim assembly, playing a strategic role in supplying high-content interiors to OEMs across Scandinavia and Northern Europe.
On a Rapid Growth Path
Established in 1995, Tata AutoComp operates 61 manufacturing facilities worldwide, employing over 20,000 people. It manages 18 business units, including nine joint ventures with global component manufacturers. The company supplies components and systems to OEMs across passenger vehicles, commercial vehicles, electric mobility, two- and three-wheelers, tractors, off-road vehicles, and the aftermarket.
Tata AutoComp reported a revenue of approximately $2.1 billion in FY24 and achieved a 36% compound annual growth rate (CAGR) in revenue growth between FY20 and FY24.
Tata AutoComp has been an outperformer, and it aims to continue growing at a rate faster than the industry average.
In a recent interview with Autocar Professional, Goel stated that the company aims to maintain similar levels in the future but acknowledged the difficulty of forecasting in the automotive sector. “But I would only say that the opportunities are huge in India and exports, and we need to win a lot more business,” he said. For FY25, he anticipates growth exceeding 20%, subject to prevailing market conditions.
Apart from expanding its international footprint, Tata AutoComp is also aggressively aiming to double its share of exports in revenue over the next five years – underlining its intent to spread globally.
“Today, we are at 16-17%. We will try to double it to 30% in the next five years,” Goel had said on the sidelines of the Bharat Mobility Global Expo 2025. He explained that this growth in exports could come from both EV and ICE segments. All ICE engine suppliers in India should be able to export their products. Indian ICE suppliers should have no cause for concern. India is growing, and hence, the ICE requirement in India is not expected to decrease in the next decade or so. Plus, you have a huge export opportunity,” he said.
Goel emphasised the importance of localisation in the context of India’s broader economic goals. “The Indian government needs to conserve foreign exchange, and therefore, the industry must step forward to reduce its reliance on imports by developing products locally,” he said.
Apart from the interior systems, as part of its end-to-end automotive play, Tata AutoComp is also focusing on localizing advanced technologies, including dual-clutch transmissions and LVDS cameras. Plugging into the European ecosystem and expanding its footprint in the UK and Europe, Tata AutoComp may look to diversify its product portfolio for global markets.