Tata AutoComp eyes vision systems and ADAS

In an ambitious move to advance India's automotive market, Tata AutoComp Systems Ltd, the Tata Group-backed auto components major, is preparing to launch Low-Voltage Differential Signalling (LVDS) cameras for vehicles. The company expects to begin production by the first quarter of next year, potentially becoming the first Indian manufacturer to do so.

"It's meant for passenger cars and buses and lorries who want to use the LVDS technology," said Arvind Goel, Chairman of Tata AutoComp, in an interview with Autocar Professional. LVDS cameras, valued for their high speed, low power consumption, and noise resistance, are increasingly in demand among automakers. Their applications span from rearview systems to side and front-facing cameras, addressing the growing need for safety and advanced driver assistance systems (ADAS) in modern vehicles.

This development reflects the broader initiative within Tata AutoComp and its sister companies to integrate cutting-edge technology across their operations. The company has collaborated with Tata Technologies to develop home chargers and with TCS to design a 3-in-1 onboard charger and DC-DC converter. For busbars—essential components that efficiently carry electrical current—it has partnered with Tata Elxsi. "We have a lot of opportunities to take help within the group and create new verticals," Goel noted. "That's what we are doing."

Established in 1995, Tata AutoComp Systems comprises 18 business units, including nine joint ventures with leading global auto component manufacturers. The company operates 61 manufacturing facilities across India, North America, Latin America, Europe, and China. Its portfolio encompasses interior and exterior systems, thermal solutions, emission and powertrain components, body and suspension systems, EV components and electricals, engineering services, supply chain management, and aftermarket segments. These products and services cater to automotive OEMs in various sectors, including passenger vehicles, commercial vehicles, two and three-wheelers, tractors, off-road vehicles, allied industrial segments, non-automotive businesses, and aftermarket services.

Goel assumed the role of Chairman at Tata AutoComp Systems after serving as MD and CEO since 2018. During his 16-year tenure at Tata AutoComp, he has held several leadership positions, including COO and President. He has played a crucial role in establishing and expanding Tata AutoComp Systems' global presence. Under his leadership, the company has formed six joint ventures, three technology agreements, and acquired TitanX, a Swedish-based global leader in engine cooling systems. Goel is also credited with strengthening Tata AutoComp's growth by focusing on the entire electric vehicle value chain, from two-wheelers to buses.

Having achieved a 36% CAGR in revenue growth between FY20-24, Goel aims to maintain similar growth levels. However, speaking pragmatically, he acknowledged that forecasting long-term growth remains challenging in the automotive sector. In the automotive industry, he notes, converting opportunities into actual business requires significant time and effort. "But I would only say that the opportunities are huge in India and exports, and we need to really win a lot more business," the top executive said, adding that he hopes to see growth exceeding 20% next year, market conditions permitting. Tata AutoComp reported revenue of approximately $2.1 billion in FY24.

Discussing current automotive industry trends, Goel noted that growth has been moderate. While the overall industry has shown limited expansion, particularly in commercial vehicles, the passenger car segment has experienced modest growth, and the tractor industry shows promise. Although Tata AutoComp has expanded its presence in the two-wheeler segment, it remains a small portion of their operations. He anticipates stronger results in the year's final quarter, which would contribute to satisfactory overall performance. Regarding future growth, Goel emphasises his company's aim to outperform the industry. For example, if the industry grows by 3%, AutoComp targets a growth rate of 8-9%, he explained.

Vision Strategy

Regarding automotive cameras, Goel emphasised that the company's entry into LVDS camera production reflects its responsiveness to market demands. Vision systems, such as LVDS, use cameras to interpret vehicle surroundings. These systems employ computer vision algorithms to detect objects, lanes, and traffic signs, converting real-world visuals into actionable driver insights.

While various camera technologies exist, he explained that LVDS cameras currently see the highest demand, which led to their prioritisation. He said there is also demand for other technologies and cameras, which are also in development. Goel acknowledges the growing prominence of alternatives like LiDAR (Light Detection and Ranging), which creates precise 3D environmental maps using laser beams. He explains that choosing between technologies like Vision and LiDAR requires strategic foresight, considering factors beyond technical specifications, including cost, infrastructure, and consumer adoption.

Currently, Tata AutoComp is concentrating on meeting domestic market demand. While initial production capacity for LVDS cameras has been established, Goel suggested future expansion possibilities as opportunities emerge. "We are only planning to sell in India," he said, but noted that their joint venture partner, Ficosa, could provide an export channel. Ficosa, a global automotive components manufacturer, produces cameras but not LVDS varieties. "If they have a requirement, they will approach us, and then we can export via them," Goel explained.

The partnership between Tata AutoComp Systems Ltd. and Spain's Ficosa International, established in 1998 as Tata Ficosa Automotive Systems Pvt. Ltd., exemplifies the fusion of Indian automotive ambitions with global expertise. Over the years, Tata Ficosa has supplied components to prominent manufacturers, including Tata Motors, Volkswagen, Ford India and Europe, Renault-Nissan, Mahindra, Fiat, and Ashok Leyland.

Goel perceives a fundamental transformation in the automotive landscape. "There's a growing aspiration for more connected, software-driven vehicles, particularly among younger buyers," Goel observes. India's increasing per capita income and young demographic are driving demand for advanced technologies like enhanced safety systems and integrated electronics. Features such as Advanced Driver Assistance Systems (ADAS) have become essential, especially for younger generations. The emphasis on safety ratings, particularly 5-star NCAP certification, has reinforced this trend.

This transformation is supported by the Indian government's Production-Linked Incentive (PLI) scheme, which encourages local electronics manufacturing and incentivises investments in chip production. Tata Electronics has made significant progress in these areas, joining an industry-wide initiative.

In this evolving ecosystem, ADAS is emerging as a key feature of next-generation vehicles. While such developments require time to mature, Goel believes the direction is clear: "So it's a cycle. It takes time, but the direction is very clear. And people have also started talking of software-driven vehicles," Goel continues.