German luxury carmaker BMW Group and homegrown Tata Technologies have signed an agreement to form a joint venture (JV) to establish an automotive software and IT development hub in Pune, Bengaluru and Chennai, the companies announced on Tuesday.
“The main development and operations activities shall be established at Bengaluru and Pune. In Chennai, the focus shall be on business IT solutions… The execution of the JV agreement is subject to review and approval by the relevant authorities,” Tata Technologies said in a statement. Financial details of the transaction remained undisclosed.
Elevate Your Tech Prowess with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| MIT | MIT Technology Leadership and Innovation | Visit |
| Indian School of Business | ISB Professional Certificate in Product Management | Visit |
| Indian School of Business | ISB Product Management | Visit |
“The JV will focus on strategic software development, including solutions for software-defined vehicles (SDV). In automotive software, the focus will be on automated driving, infotainment, and digital services. In business IT, the emphasis will be on digitalization and automation of product development, production and sales,” the statement added.
With BMW Group and Tata Technologies each holding a 50% stake in the newly-formed JV, it will have 100 trained and experience professionals of the Tata group firm since inception. The digital engineering expertise and talent pool in India will be leveraged for BMW Group’s strategic expansion of software coding capabilities across global IT hubs and 24/7 operations.
Tata Technologies, the unit of carmaker Tata Motors, provides engineering and technology services to auto, aero and heavy machinery makers.
BMW already has a manufacturing plant in Chennai and gets its engines in the country from Force Motors, while TVS Motors helps make the German motorcycles.
Discover the stories of your interest
“Our collaboration with the BMW Group demonstrates our commitment to providing top-tier solutions in automotive software and digital engineering to customers across the world. Aligned with our vision of engineering a better world, we’re excited to bring our expertise to the forefront, aiding BMW Group in engineering premium products, delivering great digital experiences for their customers and propelling its digital transformation journey in Business IT,” said Warren Harris, CEO and MD of Tata Technologies.Tata Technologies, which got listed on the stock exchanges in November 2023, saw its stock jump over 7% to touch a high of Rs 1126.80 per share after the JV announcement. The firm also provides its engineering and technology services to other global firms including Ford, Honda and Airbus.
“Our collaboration with Tata Technologies will accelerate our progress in the field of the software-defined vehicle. In international comparison, India boasts a large number of talents with outstanding software skills, who can contribute to our software competence. Developing vehicle software for the BMW Group means working with top-class processes and tools, which in turn gives Indian software engineers the chance to shape state-of-the-art, premium automotive experiences in future fields such as highly automated driving and artificial intelligence,” said Christoph Grote, senior vice president of Software and E/E Architecture, BMW Group.
“The expansion of international DevOps hubs has clearly proved to be a successful model for the BMW Group. I am therefore extremely pleased that we have found a strong and valued technology partner with Tata Technologies and are now also expanding our footprint in India,” added Alexander Buresch, CIO, and senior vice president of BMW Group IT.