Dive Brief:
- BMW Group and Tata Technologies have signed a joint venture agreement to establish a software and IT development hub with locations in Pune, Bangalore and Chennai, India, according to a press release last week.
- The joint venture will focus on strategic software development — including vehicle software that supports automated driving — as well as infotainment and other digital services.
- The joint venture will launch with around 100 employees. But BMW plans to expand the employee count to a “four-digit number” in the coming years, as well as add the organization to its global network of software and IT development hubs.
Dive Insight:
As the auto industry shifts towards electrification and the development of software-defined vehicles, BMW and other legacy automakers continue to form partnerships with tech companies for assistance.
The partnerships come as automakers seek to be better prepared for emerging trends. According to a January survey from AlixPartners, just 1 in 4 automakers and Tier 1 suppliers are “fully prepared” for software-defined vehicles, but are looking to boost their capabilities. A separate report from Deloitte in September 2023 found that automakers will also require the expertise of companies that have traditionally operated outside the automotive industry to develop software-defined vehicles.
"In the evolving automotive landscape, the journey towards software-defined vehicle represents a pivotal shift in automotive software and vehicle development methodologies,” said Nachiket Paranjpe, president of automotive sales at Tata Technologies. “We will leverage our deep domain knowledge and SDV expertise to collaborate with the BMW Group towards engineering vehicles that are not just technologically advanced but deliver exceptional experiences to consumers around the globe."
BMW is utilizing a “DevOps” approach for its software development, which includes close collaboration between developers and operators in order to develop software more quickly and efficiently. According to the press release, the DevOps methodology provides BMW with major advantages, particularly for backend and application development.
“The expansion of international DevOps hubs has clearly proved to be a successful model for the BMW Group,” said Alexander Buresch, chief information officer and senior vice president of BMW Group IT.
BMW rival Porsche announced a similar software development partnership last month with Silicon Valley-based startup Applied Intuition. As part of the deal, Applied Intuition will provide Porsche with tools for end-to-end software validation and help the automaker manage and update its vehicle software platforms. Porsche also invested an undisclosed amount in the startup’s recent $250 million funding round.
