India's Tata Technologies to form JV with BMW to establish IT development hub in India

Tata Group's Tata Technologies will form a joint venture (JV) with BMW, a German-based luxury car maker, to establish an automotive software and IT development hub in India. Operations will begin in Pune, Bengaluru, and Chennai.

The primary development and operations activities will be centred in Bengaluru and Pune, while Chennai will focus on business IT solutions.

What will be the focus of the joint venture?

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 JV will commence operations with 100 talented Innovators and intends to grow quickly to a four-digit number in the following years. 

Targeting key areas

Centred in the tech hubs of Bengaluru and Pune, with a focus on business IT solutions in Chennai, the JV aims to be a cornerstone in BMW's expansion of software coding capabilities.

It will target key areas such as automated driving, infotainment, and digital services within automotive software, alongside enhancing digitalization and automation in product development, production, and sales. The JV will become part of BMW Group’s global network of software and IT hubs.

Leadership comments

“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.

Who will own the joint venture?

Initially, Tata Technologies will incorporate the company as a wholly-owned subsidiary. Once both parties meet the closing conditions, including merger-control approval, BMW will invest in the company, acquiring a 50% stake in the post-investment equity-share capital of the entity.

The execution of the JV agreement is subject to review and approval by the relevant authorities, the company said in a release. 

“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,” said Alexander Buresch, CIO, and Senior Vice President of BMW Group IT. “