German automotive major BMW Group and Tata Technologies, a global product engineering and digital services firm, on Tuesday, said they will form a joint venture to set up an automotive software and IT development hub in India.

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The two firms have signed an agreement to form a joint venture (JV) with the aim to establish an automotive software and IT development hub in Pune, Bengaluru, and Chennai, a joint statement by the companies said.

The main development and operations activities will be established in Bengaluru and Pune.

In Chennai, the focus shall be on business IT solutions, it added.

The execution of the JV agreement is subject to review and approval by the relevant authorities, the statement added.

The JV will deliver automotive software, including Software-defined Vehicle (SDV) solutions for BMW Group's premium vehicles and digital transformation solutions for its business IT. It will commence operations with 100 innovators and "intends to grow quickly to a four-digit number in the following years", the statement said.

The JV will become part of BMW Group's global network of software and IT hubs.

"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," Tata Technologies CEO and MD Warren Harris said.

The company will aid BMW Group in engineering premium products, delivering" great digital experiences" for their customers, and propelling its digital transformation journey in business IT, he added.

BMW Group Senior Vice President of Software and E/E Architecture Christoph Grote said the collaboration with Tata Technologies will accelerate BMW's progress in the field of the software-defined vehicle.

"In international comparison, India boasts a large number of talents with outstanding software skills, who can contribute to our software competence," Grote added.

Further, he said developing vehicle software for the BMW Group means working with top-class processes and tools, which in turn gives Indian software engineers the chance to shape state-of-the-art, premium automotive experiences in future fields such as highly automated driving and artificial intelligence.