Tata Technologies’ share price was upbeat on Tuesday after the Tata Group company announced a major partnership with global auto behemoth

What Happened: Tata Technologies and the BMW Group announced their collaboration through a Joint Venture (JV) aimed at developing automotive software and IT solutions. This partnership is set to enhance BMW’s premium vehicles with software-defined vehicle (SDV) solutions and propel its business IT into a new era of digital transformation.

The JV, pending review and approval by relevant authorities, will commence its operations in Pune, Bengaluru, and Chennai. Initially, it will employ 100 skilled innovators from Tata Technologies, with plans to expand into a four-digit workforce in the coming years.

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This move is part of BMW’s strategy to bolster its global software and IT capabilities, focusing on automated driving, infotainment, digital services, and the digitalization and automation of product development, production, and sales processes.

The development helped the stock extend gains for the second day even as global brokerage firm Citi reiterated its “sell” call on the stock. The analysts also revised down the price target to ₹920 from ₹1,000.

This comes just a day after a rating upgrade to “buy” from another global brokerage firm BofA. The target price from BofA is ₹1,250.

Price Action: Tata Technologies’ share price was up 1.17% to trade at ₹1,062.05 shortly after the markets opened on Tuesday.

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