To further reduce its already scant presence in the Indian market, American vehicle manufacturer General Motors Company, on Monday announced an agreement wherein Tata Consultancy Services Ltd (TCS) – country’s largest software exporter – will acquire certain assets of the Bengaluru based technical centre of the vehicle manufacturer and 1300 employees of the company will be come under the rolls of TCS.
This will also be the one of the most significant steps taken by TCS in the space of future mobility and other aspects of the automotive industry.
“Under the terms of the agreement signed earlier today, TCS will acquire certain assets at the GM Technical Center – India (GMTC-I), in Bengaluru, and will partner with GM in supporting its global vehicle programs with engineering design services over the next 5 years. Over 1,300 employees of GMTC-I will transfer to TCS, including teams focused on propulsion systems, vehicle engineering, controls development, testing, creative design and special projects,” noted spokes persons of both companies in a press release issued.
As losses kept increasing due to massive decline in vehicle sales in India, General Motors decided to stop selling vehicles in the domestic market in May, 2017. The company now exports vehicles from its manufacturing capacity based in Maharashtra, while its second plant based in Gujarat was sold to Chinese vehicle manufacturer SAIC Corporation – the parent company of M G Motor India Pvt Ltd.
“TCS has been an outstanding partner for 16 years. We are pleased to evolve our partnership even further, as we work to deliver on our commitment to create a world with zero crashes, zero emissions and zero congestion,” said, Dan Nicholson, vice-president electrification, controls, software and electronics, General Motors.
The transaction is expected to be completed by the end of month. General Motors established he technical centre in 2004 in Bengaluru and contributes to the company’s global programs, across propulsion systems, vehicle engineering, controls development, testing, creative design and special projects. It also houses a design studio and an engineering center with in-house electronics hardware and software testing and validation infrastructure.
“Next generation automotive R&D is a key focus area for TCS, given the criticality of product innovation and connectedness in the Business 4.0™ world. This new partnership with General Motors is a testament to our willingness to invest in the relationship for the longer term,” said Susheel Vasudevan, Global Head, Manufacturing Business Group, TCS.