Tata AutoComp Systems acquires IAC Sweden to expand global operations

The acquisition is undergoing European regulatory approval, expected to be completed within two to three months

Tata AutoComp Systems, an automotive components’ manufacturer, said on Monday that it would acquire International Automotive Components Group Sweden AB (IAC Sweden) for an undisclosed sum.

 

The 2024 revenue of IAC Sweden, which manufactures interior systems and components for the automotive industry, was around $800 million (₹6,841.6 crore).

 

It had declared bankruptcy in June 2024 and has since been managed by a Swedish court-appointed administrator.

 

Although the deal size was not revealed, the company said that this acquisition is a part of Tata AutoComp’s strategy to expand global footprint and strengthen ties with European original equipment manufacturers (OEMs).

 

The acquisition is undergoing European regulatory approval, expected to be completed within two-three months.

 

The acquisition will increase Tata AutoComp’s presence in Sweden and the European automotive sector.

 

With IAC Sweden, Tata AutoComp will gain access to manufacturing capabilities, technology, and customer relationships in the premium automotive space.

 

The integration will add to Tata AutoComp’s position as one of India’s largest automotive component manufacturers.

 

By incorporating IAC Sweden’s operations, Tata AutoComp plans to expand production capacity and introduce new product lines for international and Indian markets.

 

The company plans to use its plants in India, China, and Sweden to offer interior design solutions tailored for regional requirements. IAC Sweden will be integrated into the Tata AutoComp brand.

 

The company plans to scale operations and explore additional business opportunities, particularly as demand for luxury vehicle interiors increases in India and other markets.

 

“This acquisition aligns with our long-term vision of expanding in global markets and strengthening our relationships with European OEMs,” said Arvind Goel, vice-chairman of Tata AutoComp Systems.

 

He added, “IAC Sweden has a legacy of delivering interior solutions, and as different technologies play out, the demand for luxurious interiors grows. It presents us with an opportunity to serve the market and drive advancements in the automotive industry.”

 

Manoj Kolhatkar, managing director (MD) and chief executive officer (CEO) of Tata AutoComp Systems said, “This acquisition is a step in Tata AutoComp’s plan to expand its global presence and technology portfolio.”

 

Tata AutoComp intends to use the acquisition to align with industry changes, including Euro 7 emission standards, increased electrification, and growing demand for software-driven automotive designs.

 

IAC Sweden operates three production sites in Lassby, Fargelanda, and Skara (all in Sweden), employing around 1,500 professionals.

 

It supplies to global automotive companies such as Volvo Cars, Volvo Trucks, and Scania, focusing on plastic molding, high-precision painting, and interior component assembly.

 

Tata AutoComp continues to assess acquisition opportunities globally.

 

The company intends to develop interior solutions that address different regional requirements, using its facilities in India, China and Europe. The acquisition of IAC Sweden is part of this strategy.