Shares of Tata Technologies Ltd surged 7% on 2 April after the company announced a Joint Venture (JV) with BMW Group for developing software.

In its regulatory filing, the company said that they have entered into a JV with BMW Group that will aid the German luxury automaker in developing automotive software for automated driving and the dashboard system among other features.

The filing added, “This collaboration between Tata Technologies and BMW Group represents a shared vision of innovation and excellence in automotive engineering and digital solutions.”

The company and BMW Group will both hold a 50% stake in the newly established company.

Warren Harris, CEO and MD of Tata Technologies, said: “Our collaboration with the BMW Group demonstrates our commitment to providing top-tier solutions in automotive software and digital engineering to customers across the world.”

The JV company will begin operations with 100 talented innovators and intends to grow this number to a four-digit number in the following years. The JV company will become a part of BMW Group’s global network of software and IT hubs.

Nachiket Paranjpe, President of Automotive Sales at Tata Technologies, said, “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.”

At 11:44 am, the shares of Tata Technologies were trading 5.73% higher at Rs 1,110.05 on NSE.