Tata Technologies and Synopsys have announced a strategic partnership to accelerate the development of software-defined vehicles (SDVs), combining Tata's vehicle engineering expertise with Synopsys' virtualization solutions for electronics digital twins.

This collaboration targets key SDV domains such as ADAS, powertrain, chassis, central compute, infotainment, connectivity, and electrification, supporting the industry's shift towards connected, electric, and autonomous vehicles.

The partnership aims to enable faster development, validation, and deployment of complex software and AI systems, facilitating innovation in the automotive sector.

Tata Technologies reported a 2.1% increase in Q2 FY26 revenue to 1,323.33 crore rupees and a 5.1% rise in net profit to 165.50 crore rupees, with half-year revenue reaching 2,567.62 crore and profit at 335.78 crore.

Tata Technologies plans to acquire Es-Tee GmbH for up to €75 million to bolster its high-end automotive engineering capabilities, especially in ADAS and digital engineering.

Following Tata Motors' demerger, Tata Motors Passenger Vehicles Ltd will become the holding company of Tata Technologies starting October 1, 2025.

Tata Technologies' management expressed confidence in its growth prospects, highlighting the strategic importance of the Es-Tee acquisition and its role in expanding high-end automotive engineering services.

Both Tata Technologies and Synopsys will focus on verification and validation services aligned with ISO 26262 and ASPICE standards to ensure safety, quality, and faster development cycles for electronic control units.

Tata Technologies will provide embedded systems and software solutions for ECU and E/E architecture development, supporting industry standards and accelerating electronic system development.

The companies have engaged with a leading European OEM to develop a blueprint for transitioning from traditional E/E architecture to next-generation software-defined vehicle designs, with pilot programs underway in North America, Europe, and India.

A pilot project with a European luxury OEM successfully created a blueprint for next-generation E/E architecture, with further pilots expanding across North America, Europe, and India.

Focus areas include virtual prototypes, simulation models, electronics digital twins for early software development, and tools for performance, safety, and reliability analysis to speed up ECU development.

Both Tata Technologies and Synopsys are committed to leveraging their expertise to address the challenges of connected, electric, and autonomous vehicles, fostering innovation in the automotive industry.