Financial details of the deal were not disclosed.
TCS will be a global engineering partner to ArvinMeritor and support product development, including specific lines in the Asia Pacific region, it said in a statement.
TCS will set up a global engineering centre in the western Indian city of Pune and, with INCAT, a wholly owned unit of Tata Technologies, "cater to the global needs of ArvinMeritor with a specific focus on the Asian market", it said.
"ArvinMeritor will be focusing on the Asia Pacific region where we are experiencing tremendous growth," said Tom Watson, vice president of ArvinMeritor's engineering and technical planning unit for light vehicle systems.
"Our growth objectives require expansion of our engineering footprint."