The auto components maker is investing in propulsion and railway seating plants in Pune while targeting orders from Vande Bharat, hydrogen, and high-speed rail projects.
Tata AutoComp Systems (TACO) is steadily expanding beyond its core automotive business by strengthening its presence in India’s railway sector, with an ambition to generate around 10% of its revenue from the segment over time. The company reported revenue of ₹222.66 billion and a net profit of ₹10.91 billion in FY26.
Having established itself as a supplier for the Vande Bharat train programme, TACO is now broadening its railway portfolio by exploring opportunities in the Mumbai-Ahmedabad high-speed rail project and India’s hydrogen-powered train initiative. The company has also started bidding for railway tenders and expects to secure contracts in the near future.
The diversification is part of TACO’s strategy to reduce dependence on the cyclical automotive market by entering adjacent industries. Its railway expansion is being driven through multiple joint ventures and specialised subsidiaries.
One of its key partnerships is with the Czech Republic-based Skoda Group, under which the companies have formed a joint venture to manufacture railway propulsion systems and components such as traction converters, auxiliary converters and drives for semi-high-speed trains, metros and light rail vehicles. The Pune-based manufacturing facility for the venture will involve an investment of around ₹2.5 billion and is expected to localise nearly 60 per cent of the components. The project could eventually generate annual orders worth ₹8 billion to ₹12 billion.
TACO is also strengthening its railway seating business through two ventures. TM Automotive Seating Systems, a joint venture with Magna Seating, serves both automotive and rail customers, while TM FAINSA Railway, formed with Spain-based FAINSA, focuses exclusively on railway seating. The TM FAINSA facility under construction in Chakan, Pune, will have the capacity to produce seating for up to 50 railway coaches each month with an initial investment of ₹500 million. The seating business alone is expected to generate annual revenue of ₹5 billion to ₹10 billion within the next four to five years.
According to company executives, TACO currently supplies nearly half of the seating used in Vande Bharat trains, including chair car and sleeper variants. The company has already supplied seating systems for two trains, while another four trainsets are scheduled for deployment. Seating systems account for roughly six to eight per cent of the cost of a railway coach.
Beyond seating, TACO is expanding into additional railway components. The company has supplied battery thermal management systems for India’s hydrogen train pilot and is developing energy-efficient heating, ventilation and air conditioning (HVAC) systems for future projects. It is also evaluating opportunities in the bullet train programme and plans to manufacture side panels, lavatories, flooring, doors and electrical systems for Vande Bharat trains as it broadens its railway product portfolio.
