Tata Tech-BMW form 50:50 JV to focus on software-driven solutions
Tata Technologies and BMW have finalised a 50:50 joint venture (JV) aimed at strengthening BMW’s software capabilities as the automotive industry increasingly shifts towards digital and software-driven solutions. The newly formed entity, BMW TechWorks India, will focus on developing software-defined vehicle (SDV) technology and IT services for BMW’s global operations.
“This partnership allows us to reaffirm India’s position as a leading provider of engineering services and digital services to the global economy,” Warren Harris, CEO of Tata Technologies, said at the official event. He noted that the automotive sector is undergoing a “paradigm shift” driven by the rise of electric vehicles and autonomous driving technologies.
The partnership comes as automakers increasingly rely on software to drive innovation in their vehicles. “Software is actually one core ingredient; a car that’s not connected is almost like a car that’s broken down,” said Christoph Grote, Senior VP, Electronics and Software, BMW.
“The India hub is not only meant to become a hub for the APAC region, but also to deliver globally and serve our customers worldwide,” said Alexander Buresch, CIO, Senior VP, BMW IT.
This JV is part of a larger industry trend as automakers race to develop next-generation vehicles capable of integrating complex software systems while meeting the growing demand for autonomous features and seamless connectivity. Tata Motors and Jaguar Land Rover are already significant automotive clients of Tata Technologies. Tata Technologies is a global engineering services company offering product development and digital solutions to global original equipment manufacturers. It has domain expertise in the automotive industry and leverages this expertise to serve clients in adjacent industries, such as aerospace, transportation, and construction heavy machinery.
Aditya Khera, CEO of BMW TechWorks India, emphasised that the joint venture would foster innovation in automotive software and mission-critical systems. “This is not offshoring or outsourcing,” said Khera. “This is a knowledge centre where product strategy is defined in collaboration with BMW.”
The joint venture will launch in early November with over 100 “high-calibre” Tata Technologies employees, a number expected to grow as the company scales operations across multiple locations in India and Europe.
“The team will take end-to-end responsibility for the solutions that are delivered. Typically, when services are delivered from India, the customer teams will aggregate those services with their work and then test and validate the product before it’s loaded onto a vehicle. This joint venture, however, will act as a seamless extension of BMW’s product development teams in Munich,” said Harris.
He further noted that the JV’s technology would cater to multiple brands under the BMW umbrella, including MINI and Rolls-Royce.
Despite concerns over the global automotive sector’s slowdown, Harris remained optimistic. “Most OEMs will continue to invest in product development during downturns, as it secures their future,” he said.
The JV’s leadership team will be based in Pune, and the teams will be distributed across three key locations: Pune, Bangalore, and Chennai, said Harris.
First Published: Oct 08 2024 | 9:35 PM IST