Tata Technologies stock rises 6% after JV with BMW for developing automotive software
Upstox
2 min read • Updated: April 2, 2024, 12:43 PM
Summary
Tata Technologies and BMW Group have announced a new joint venture to develop automotive software solutions. The JV will focus on strategic software development, including software-defined vehicles (SDV).
Tata Motors subsidiary, Tata Technologies and BMW Group has announced a new joint venture (JV) to deliver automotive software solutions for BMW Group’s premium vehicles and digital transformation solutions for its business IT.
Tata Technologies is a pioneer in automotive technology solutions and has all major global automotive car manufacturers as marquee clients, including JLR, McLaren, Honda, Ford, and Cooper Standard. BMW becomes a new addition to the existing marquee client list.
The joint venture (JV) aims to establish software and IT development hubs in Pune, Bangalore, and Chennai. The JV will focus on strategic software development, including software-defined vehicles (SDV). The main development and operations activities will happen in Bangalore and Pune and the Chennai hub will be focused on developing solutions for business IT segment.
The JV will also deliver automotive software focused on automated driving, infotainment and digital services. Lastly, Tata Technologies will also design and develop digitization and automation of product development, production and sales in the business IT segment. The JV will commence operations with 100 employees and scale to four digits in the coming years.
Commenting on the deal, Christopher Grote, Senior VP of Software and Architecture of BMW group, said, "Our collaboration with Tata Technologies will accelerate our progress in the field of software-defined vehicles". Warren Harris, MD and CEO of Tata Technologies, also added, "Our collaboration with BMW group demonstrates our commitment to providing top-tier solutions in automotive software and digital engineering to customers across the world".
Tata Technologies IPO was the latest public issue from the Tata group in nearly 2 decades. In Q3FY24, Tata Technologies reported a 14% YoY rise in revenue at ₹1,289 crore and a 14.8% YoY rise in net profit at ₹170 crore. Following JV's announcement, Tata Technologies shares are trading 6.1% higher on the NSE as of 11:30 am, with a day high of ₹1,127 per share.