TCS to acquire parts of GM’s Technical Centre in Bengaluru

Tata Consultancy Services will acquire certain assets at the GM Technical Center – India (GMTC-I) that is expected to help boost its automotive engineering capabilities

September 16, 2019

This will also be one of the most significant steps taken by TCS in the space of mobility given that next-gen automotive R&D is a key focus area for TCS

TCS and GM have been industry partners for nearly 16 years and this move will evolve the partnership further, elevating it into a strategic relationship

Through this transfer, GM is said to benefit from the scale and cross-sectoral knowledge of TCS, while TCS will benefit from world-class engineering talent

India is steadily gaining importance as a strategic hub for automotive research and development for both home-grown and global companies

Tata Consultancy Services (TCS) and General Motors (GM) recently announced that TCS will acquire certain assets at the GM Technical Center – India (GMTC-I). The deal will see more than 1,300 employees of GMTC-I being transferred to TCS, including teams focussed on propulsion systems, vehicle engineering, controls development, testing, creative design and special projects.  This will also include the two companies’ partnership, wherein TCS will support its global vehicle programmes with engineering design services over the next five years. This is one of the most significant steps taken by TCS in the space of future mobility. Next-generation automotive R&D is a key focus area for TCS, given the criticality of product innovation. 

According to a statement by GM vice president for electrification, controls, software & electronics, TCS and GM have been partners for nearly 16 years and this move will evolve this partnership further, elevating it into a strategic relationship. According to a statement by Global Head, Engineering and Industrial Services Practice, TCS, these are exciting times as GM paves the way into next-generation mobility, helping them design and engineer world-class vehicles that set new benchmarks in the driving experience, safety and emissions. Through this transfer, GM is said to benefit from the scale and cross-sectoral knowledge of TCS, while TCS will benefit from the influx of world-class engineering talent.

Recently, there have been numerous instances of international companies tying up with Indian companies and India’s premier academic/ research institutes to develop cutting-edge automotive solutions. For instance, Faurecia, one of the world’s largest automotive parts manufacturers which has been operating in India since 1997, has teamed up with the Indian Institute of Science in Bangalore to develop new automotive solutions based on artificial intelligence (AI). 

When it comes to automotive research and development, India is steadily gaining importance as a strategic hub for both home-grown and global companies. The automotive sector represents around 8 per cent of India’s total annual R&D expenditure. The Indian automotive industry (including component manufacturing), one of the largest in the world, is expected to reach a valuation of as much as US$280 billion by 2026.