3 weeks ago
Tata AutoComp diversifies into railways, targets 10% business share
Tata AutoComp makes car parts, but now it also wants to make train parts.
The company is often called TACO.
TACO wants to win about 10% of the train parts business in India.
They already make half of the seats used in the famous Vande Bharat trains.
TACO is also teaming up with other companies to build train engines and electrical parts.
A new factory to make these parts is being built in Pune, India.
TACO is helping with new hydrogen-powered trains too.
They also hope to make parts for the bullet train one day.
Trains give the company steady work when car sales slow down.
Tata AutoComp Systems (TACO) has diversified from automotive parts into the railway business and is targeting a 10% share.
TACO reported FY26 revenue of Rs 22,266 crore and a net profit of Rs 1,091 crore.
TACO and Skoda Group set up a joint venture last year to manufacture railway propulsion systems in India.
TACO companies supply around 50% of the seating for Vande Bharat trains, including chair car and sleeper coaches.
TACO is exploring bullet train opportunities and participated in hydrogen train pilots with battery thermal management systems.
- Who
- Tata AutoComp Systems (TACO), along with joint venture partners Skoda Group, Magna Seating, and FAINSA
- What
- Diversified into the railway business by supplying Vande Bharat seating, railway propulsion systems, and targeting a 10% market share
- Where
- India, with plants and factories in Pune and Chakan, Maharashtra
- When
- Current period; TACO's FY26 results were cited, and the TACO-Skoda joint venture was set up last year
- Why
- To reduce the cyclical impact of the automotive business and respond to Indian Railways' need for more propulsion system manufacturers
Key facts
- Revenue (FY26)
- Rs 22,266 crore
- Net profit (FY26)
- Rs 1,091 crore
- Railway market target
- 10% share
- Vande Bharat seating share
- About 50%, including chair car and sleeper coaches
- Joint venture partners
- Skoda Group, Magna Seating, FAINSA
- TACO-Skoda plant
- Pune; ~Rs 250 crore investment; 60% local sourcing target
- TM FAINSA Railway plant
- Chakan, Pune; 50 coaches per month capacity
- Seating share of coach cost
- 6-8%
Quotes
Buddhiraj Deshmukh
Business Unit Head of TACO AI at Tata AutoComp Systems
“Buddhiraj Deshmukh, Business Unit Head – TACO AI and Cluster Head, said they have started their journey with the hydrogen train. They supplied the battery thermal management systems. They would be building energy‑efficient HVAC systems.”
financialexpress.com
“Amit Dey, Business Unit Head, TM Seating, and Cluster Head, said there is a serious shortage of propulsion system manufacturers in India, and the Indian Railways leadership felt that more players were needed.”
financialexpress.com
Sources
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