Tata Technologies, a global product engineering and digital services company under the Tata Group, has made a significant move to bolster its European presence by acquiring ES-Tec Group, a Germany-based automotive engineering services provider, for €75 million. The acquisition, announced on September 13, 2025, is an all-cash deal that will be completed over two years, contingent upon ES-Tec meeting specific performance objectives. Tata Technologies anticipates that the acquisition will positively impact its earnings per share (EPS) from the first full year of operations.
ES-Tec Group, headquartered in Wolfsburg, Germany, was founded in 2006 and provides premium engineering services to global carmakers. The company specializes in Driver Assistance Systems (ADAS), connected driving, and digital engineering. ES-Tec employs over 300 engineers and serves top European Original Equipment Manufacturers (OEMs).
Tata Technologies' acquisition of ES-Tec Group provides it with a strategic foothold in Germany, a hub for automotive innovation, and broadens its access to key OEM accounts. Warren Harris, MD & CEO of Tata Technologies, views the acquisition as a "strategic leap" that enhances the company's ability to deliver end-to-end product engineering solutions across the automotive value chain. Marc Wille, MD & CEO of ES-Tec, believes the partnership will expand the company's international reach while improving pricing competitiveness and development cycles.
This acquisition aligns with the increasing investments by European automakers in ADAS, electrification, and software-defined vehicle platforms, which are driving demand for engineering service providers. The European ESP market is projected to grow from €4.5 billion in 2020 to €11.7 billion by 2030.
The integration of ES-Tec Group is expected to significantly enhance Tata Technologies' Engineering, Research, and Development (ER&D) capabilities, particularly in embedded systems, electronics, and systems engineering. Tata Technologies aims to leverage the acquisition to unlock cross-selling synergies, expand its reach, and jointly pursue next-generation mobility programs.
Tata Technologies has been expanding its European operations in recent years. In 2023, the company announced an expansion of its European Headquarters in Coventry, West Midlands, creating 350 new jobs. The company also established strategic collaborations with the University of Wolverhampton and the University of Warwick to strengthen the region's STEM talent pool by establishing Centers of Excellence. Tata Technologies' European Innovation and Development Centre (EIDC) in Leamington Spa serves the European, US, and Asia-Pacific markets, delivering engineering and digital solutions across the automotive, aerospace, and industrial machinery sectors.
The acquisition of ES-Tec Group signifies Tata Technologies' commitment to expanding its global footprint and accessing innovative engineering capabilities. It strengthens Tata Technologies' position as a leading global product engineering and digital services company, particularly in the automotive sector.
