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BMW, Jaguar Land Rover to jointly develop electric powertrains

Bayerische Motoren Werke AG and Tata Motors Ltd.'s Jaguar Land Rover Automotive PLC on June 5 said they will team up to develop powertrain technology for electric vehicles. It is the latest in a stream of cooperation agreements among rival automakers amid sweeping technological change and growing regulatory pressures.

The carmakers will carry out joint research and development to improve upon existing electric drive systems using BMW's Gen 5 powertrain as their starting point, BMW said in a press release. The all-in-one powertrain houses the motor, transmission and electronics in a single casing and will debut in the iX3 SUV from 2020. It has been designed to eliminate the need for rare earth minerals, easing pressure on the automaker to obtain the scarce resources.

"The cooperation allows the BMW Group and Jaguar Land Rover to take advantage of cost efficiencies arising from shared development of future evolutions and production planning costs as well as economies of scale from joint purchasing," BMW said.

A team of BMW and JLR experts will jointly develop the units in Munich, but each company will produce their own powertrains at their respective manufacturing plants to account for brand-specific requirements.

BMW launched its first electric car, the i3, in 2013. Jaguar launched its first electric offering, the i-Pace, in March 2018.