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Old 24th September 2014, 10:56   #1
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Default Tata AutoComp, Magna enter into JV to provide CV seating systems

Tata AutoComp Systems Limited has entered into a 50/50 Joint Venture with Canada-based automotive component supplier, Magna International Inc. to provide seating systems for commercial vehicles in the Indian industry. The JV will be headquartered in Pune, in the state of Maharashtra, India.

Tata AutoComp claims that with the rapid increase in infrastructure, more and more vehicles are expected to ply on long distances. In such a scenario, the safety and comfort of both driver and passengers is the priority. Through this JV, it intends to address this need of the industry.

Tata AutoComp provides products and services to the Indian and Global automotive OEMs as well as Tier 1 suppliers. It has own capabilities in automotive interior and exterior plastics, composites, sheet metal stampings as well as engineering and supply chain. The company has 4 joint ventures in companies from the global auto component industry through which it manufactures and markets automotive components and systems like engine cooling solutions, automotive batteries, rear view mirrors, command systems, HVAC and suspensions for heavy commercial vehicles. Tata AutoComp has 29 manufacturing facilities spread across India.

Magna International Inc. has 317 manufacturing operations and 83 product development, engineering and sales centres in 29 countries. It has over 130,000 employees. Magna's product capabilities include producing body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules, as well as complete vehicle engineering and contract manufacturing.

Last edited by Aditya : 24th September 2014 at 18:08.
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Old 24th September 2014, 11:22   #2
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Default re: Tata AutoComp, Magna enter into JV to provide CV seating systems

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Originally Posted by Aditya View Post
Tata AutoComp Systems Limited to provide seating systems for commercial vehicles in the Indian industry. The JV will be headquartered in Pune, in the state of Maharashtra, India.
No surprise, considering the earlier JV with Johnson Controls had come to an end.

http://timesofindia.indiatimes.com/b...w/20396228.cms
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Old 24th September 2014, 12:14   #3
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Default re: Tata AutoComp, Magna enter into JV to provide CV seating systems

Am curious to know whether TACO absorbed any technology from Johnson Controls, its erstwhile JV partner? If at all any technology was absorbed or created by the JV company in India, it must have now gone to Johnson Control which now owns the company 100%. Instead of selling its 50 stake to Johnson Controls, why didn't TACO buy JC's stake?

With one foreign partner gone, TACO has now collaborated with another foreign company for technology and so, dependence remains the order of the day.

TACO should endeavour to emerge as as global auto comp company in its own right. As an Indian, it's disappointing to see its lack of ambition.
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Old 24th September 2014, 13:53   #4
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Default re: Tata AutoComp, Magna enter into JV to provide CV seating systems

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Am curious to know whether TACO absorbed any technology from Johnson Controls, its erstwhile JV partner?
For all practical purposes the earlier JV, TJC, was a subset of Johnson Controls' global operations with the technology coming from JC governed by Tata's corporate policies. Also this JV had an important role in some of the key cars from TML. So there were gains on both sides.

A positive point to note is that such JVs from TACO did contribute very well to the talent pool in India. Many a company (both domestic & foreign) has made use of this as well, including Magna.

Hence due credit goes to the Tata group as well for still continuing to have such collaborations with global leaders. They are one of the very few who takes corporate social responsibility very seriously.

Last edited by vinjosep : 24th September 2014 at 13:56.
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Old 24th September 2014, 23:32   #5
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Default Re: Tata AutoComp, Magna enter into JV to provide CV seating systems

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TACO should endeavour to emerge as as global auto comp company in its own right. As an Indian, it's disappointing to see its lack of ambition.
I am not very sure. Since Tata has their own finished products, not just components, TACO should mainly cater to TML products or exports. Probably Tata do not want to see the same seating systems being used in TML and AL CVs.
I know seating systems here refer to Driver seats, what about the seats in Tata Marcopolo buses, do they make the seats at their plant or sourced?
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Old 25th September 2014, 18:26   #6
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Default Re: Tata AutoComp, Magna enter into JV to provide CV seating systems

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Originally Posted by teamveevee View Post
I am not very sure. Since Tata has their own finished products, not just components, TACO should mainly cater to TML products or exports. Probably Tata do not want to see the same seating systems being used in TML and AL CVs.
I know seating systems here refer to Driver seats, what about the seats in Tata Marcopolo buses, do they make the seats at their plant or sourced?
Seating systems here mean just about any seats that are in an automobile. So pull up the seat covers of the Toyota Liva here in India - the forms (as they are called) are made by Johnson Controls.

Got a Merc? an Audi?...etc... The seats, the interior trims and in some cases even the dashboard are from the one of the major players in the market which includes Johnson Controls & Magna.

Also do keep in mind that seats in the developed world have loads of features. Heated seats with a brain of its own (ever heard of anyone frying their bum by using one?), ventilated seats which breath based on your body temperature and the list goes on. A real world application here in India would be the seat-belt reminder mechanism. It's an interesting world.

Btw I guess most the STUs etc use the seats from Harita (which is a TVS group concern). Am sure there are many TBHPians from these firms here & no I don't work for any of these So let's wait for them to pitch in.

Last edited by vinjosep : 25th September 2014 at 18:27.
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Old 27th September 2014, 00:02   #7
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Originally Posted by teamveevee View Post
I am not very sure. Since Tata has their own finished products, not just components, TACO should mainly cater to TML products or exports. Probably Tata do not want to see the same seating systems being used in TML and AL CVs.
I know seating systems here refer to Driver seats, what about the seats in Tata Marcopolo buses, do they make the seats at their plant or sourced?


No company develops subsidiary with a vision to cater only to their products. And there is no intentions with in the Tata, that there should be no component been supplied to competitors. They are much more matured and it reflects in the business to make the subsidiary more business viable. If that was the case many of subsidiaries catering to Passenger car business of Tata would now be making huge loss, as Tata's sales graph is steadily declining for many months consecutively. By being brand neutral, they derisk their business.
More over the outside business is much bigger than catering only to group company in the same said company Tata Johnsons. As you said, if Tata doesn't wants to see similar components in AL, it needs to invest in developing much more important components like pneumatic suspensions, brake systems, discs, alternators, starter motors etc, as there are lot of similarity in them.
And most importantly Tata Tayo is supplying to AL for years and AL's body building venture Irizar TVS does body building for all it's competitors.

To answer your last question, seats in Marcopolo buses were supplied by Tata Johnsons.
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