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As confidence grows in Indian firms for handling proprietary technology, global automakers will look to take advantage of it, Warren Kevin Harris, CEO & MD, Tata Technologies told ET.
“JVs will become a much more interesting part of the mix (India strategy of the global automakers) simply because of proprietary concerns they have. The tier one organisations are going to want to look at ways of protecting the investment that they’re making. As the confidence in India‘s capability expands, automakers will look to take advantage of India, but they will look to ensure that there is a certain level of protection that they have for the investments—particularly the proprietary investments that are critical to their future,” he said.
Tata Group’s global product and engineering company and BMW Group on Tuesday officially launched their alliance announced earlier this year. The equal JV company called BMW TechWorks India will be undertaking proprietary design, engineering, and scalable software solutions for BMW Group brands Mini, Rolls-Royce and BMW. It would start operations next month with 100 employees across tech hubs in Pune, Bengaluru and Chennai, the companies said. This will be scaled up to a “four-digit number” by the end of 2025.
The JV company was incorporated in July 2024 with an authorised share capital of Rs 10 lakhs. The venture will have at its core product development, artificial intelligence, machine learning, simulation, software, and connectivity services development.
“BMW TechWorks India is a significant addition to our global vehicle software development initiatives. India’s software talent will be a great asset for our software-defined vehicles of the future. With agile processes and state-of-the-art tools, engineers at BMW TechWorks India will co-create innovative automotive digital experiences, such as automated driving and next-gen infotainment systems,” said Christoph Grote, senior vice president of electronics and software at BMW.In addition to automotive software, the JV will provide digital innovations to BMW Group’s Business IT. Consequently, BMW TechWorks India will expedite digital transformation of the luxury carmaker’s global production network, along with enhancing its digital customer journey and sales processes.Another key area of focus will be the development of AI applications and platforms, which will increase the speed and efficiency of all core business processes, the companies said.
India has emerged as an attractive destination for its cost arbitrage and scale perspective for global automakers. Mercedes Benz, Stellantis, and Renault-Nissan are among multinational automakers operating R&D facilities in the country to address their global needs. According to Harris, BMW has chosen India not due to the cost arbitrage but to get access to the type of scale it offers.
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