BMW Group and Tata Technologies will form a joint venture to develop automotive software for the German luxury carmaker, the Indian engineering services company said on Tuesday.
India is a software development hub for global automakers
and auto parts makers including Volvo and Magna International, while also
witnessing rising investments from companies including Toyota Motor and
Mercedes Benz to boost production.
The BMW-Tata Technologies venture, the first partnership
between the two, will develop automotive software for automated driving and the
dashboard system among other features, the Tata company said but didn't
disclose any financial details of the agreement.
The BMW Group and Tata Technologies will each hold a 50%
stake in the newly-formed company, it added.
BMW has a manufacturing plant in the southern Indian city
Chennai, and gets its engines in the country from Force Motors, while TVS Motor
helps make the German company's motorcycles.
The joint venture will operate in Chennai, Bengaluru, and
Pune and will commence operations with 100 employees, Tata Technologies said.
Tata Technologies, a unit of India's top carmaker by revenue
Tata Motors, provides engineering and technology services to auto, aero and
heavy machinery firms including Honda, Ford and Airbus.
Its shares were up more than 7% after the announcement,
before trimming some gains.
The company went public in November last year to become the
first Tata Group company to launch an initial public offering in nearly two
decades. Its shares have more-than-doubled from its listing price.