- Saturday, July 27, 2024
The newly company will be equally owned, with both BMW Group and Tata Technologies holding a 50 per cent stake, as revealed by Tata Technologies.
By: Shubham Ghosh
INDIAN engineering services firm Tata Technologies on Tuesday (2) announced that it will collaborate with Germany’s BMW Group to form a joint venture (JV) aimed at developing automotive software for the German luxury auto giant.
India has emerged as a prominent software development hub for various global automakers and automotive parts manufacturers, such as Volvo and Magna International. Concurrently, there has been a surge in investments from companies such as Toyota Motor and Mercedes Benz, aimed at increasing production.
Tata Technologies announced that the joint venture with BMW, their inaugural collaboration, will focus on developing automotive software for features such as automated driving and dashboard systems. However, the financial specifics of the agreement were not disclosed by the Indian company.
Read: Kerala software company to provide BMW infotainment solution
The new company will be equally owned, with both BMW Group and Tata Technologies holding a 50 per cent stake, as stated by Tata Technologies.
BMW operates a manufacturing facility in Chennai in the southern Indian state of Tamil Nadu, and sources its engines from Force Motors in the country. Additionally, TVS Motor assists in the production of motorcycles for the German company.
Read: TVS Motor, BMW Motorrad join hands to make EVs
Tata Technologies disclosed that the JV will be operational in cities such as Bengaluru and Pune besides China, with an initial workforce of 100 employees.
As a subsidiary of India’s leading car manufacturer by revenue, Tata Motors, Tata Technologies specialises in providing engineering and technology services to automotive, aerospace, and heavy machinery companies, including Honda, Ford, and Airbus.
Following the announcement, Tata Technologies’ shares surged by over seven per cent, although they later experienced some reduction in gains.
The company made its debut in the public market in November 2023, becoming the first Tata Group entity to launch an initial public offering in nearly two decades. Its shares have more than doubled in value from the initial listing price.
(With Reuters inputs)
