The BMW Group is accelerating the digital transformation of its manufacturing operations by embedding artificial intelligence deeply into physical processes. A central focus of this strategy is Physical AI, a concept that unites digital intelligence with machinery and robotics. This integration allows systems like humanoid robots to function effectively within live production environments. For the first time, this approach is being introduced in Europe through a pilot project at the company’s Leipzig plant, where humanoid robots will be tested in the assembly of high-voltage batteries and component manufacturing. This initiative builds on a previous deployment at the Spartanburg plant in United States, where valuable experience was gained and is now being used to refine and scale the technology.

Artificial intelligence is already embedded throughout the BMW production system, underpinning functions such as digital twins, AI-supported quality assurance and autonomous transport in intralogistics. A unified data architecture serves as the foundation for this intelligence, enabling real-time access to consistent and standardised information across all manufacturing locations. This infrastructure supports the deployment of digital AI agents capable of autonomous decision-making in complex environments. When these agents are paired with robotic systems, they give rise to Physical AI, which represents a significant evolution in production technology.

The company views humanoid robotics as a strategic addition to its automation portfolio. These robots are particularly suited to tasks that are repetitive, physically strenuous or present safety risks. By deploying them in such roles, the company aims to reduce physical strain on employees and enhance workplace conditions. To drive this forward, a Center of Competence for Physical AI in Production has been established to consolidate expertise and facilitate knowledge sharing across the organisation.

A structured process governs the evaluation of potential technology partners. Candidates are assessed against criteria related to maturity and industrial applicability, followed by laboratory testing using real production scenarios. Successful tests lead to limited deployments under actual factory conditions before advancing to full pilot phases. This methodology ensures that only thoroughly vetted solutions are integrated into series production.

The Leipzig pilot is being conducted in collaboration with Hexagon, a longstanding partner specialising in sensor technology and software. Following theoretical and laboratory evaluations, an initial deployment of Hexagon’s humanoid robot, AEON, took place at the plant in December 2025. A second test phase is scheduled for April 2026, with the full pilot set to begin in the summer of that year. The robot’s human-like design allows for the attachment of various tools and grippers, making it adaptable for multiple tasks in battery assembly and parts manufacturing.

Earlier work at the Spartanburg plant provided critical insights into the practical application of humanoid robotics. In partnership with Figure AI, the robot Figure 02 was deployed in body shop operations, where it handled the precise placement of sheet metal parts for welding. Over 10 months, the robot supported the production of more than 30,000 vehicles, operating in 10-hour shifts and handling over 90,000 components. The pilot demonstrated that humanoid robots could perform high-precision tasks reliably and safely in a live production setting. It also highlighted the importance of early collaboration with teams responsible for IT infrastructure, safety and logistics. Seamless integration into the existing automation ecosystem was achieved through standardised interfaces, and employee reception was notably positive, aided by transparent communication from the outset.

The success of these initial deployments has paved the way for further collaboration. BMW and Figure are currently exploring additional applications for the next-generation Figure 03 robot, continuing to build on the foundation established in both United States and Europe.

Milan Nedeljković, Member of the Board of Management of BMW AG, Production, said, “Digitalisation improves the competitiveness of our production – here in Europe and worldwide. The symbiosis of engineering expertise and artificial intelligence opens up entirely new possibilities in production,”.

Michael Nikolaides, Senior Vice President Production Network, Supply Chain Management at BMW Group, said, “Our aim is to be a technology leader and to integrate new technologies into production at an early stage. Pilot projects help us to test and further develop the use of Physical AI – that is, AI‑enabled robots capable of learning – under real-world industrial conditions. The successful first deployment of humanoid robots at our BMW Group plant in Spartanburg in the USA proves that a humanoid robot can function not only under controlled laboratory conditions but also in an existing automotive manufacturing environment.”

Michael Ströbel, Head of Process Management and Digitalisation, Order to Delivery at BMW Group, said, “We are delighted to deploy a humanoid robot for the first time in a pilot project at a plant in Germany. Following evaluation by our Center of Competence for Physical AI in Production, tests were carried out in the laboratory and at Plant Leipzig at the end of last year. This year, our focus is on step‑by‑step integration into our production system to explore a wide range of applications. The emphasis is on researching multifunctional use of the robot in various production areas such as battery manufacturing for energy modules and component production for exterior parts. With Hexagon, we have found a proven long‑standing partner with a highly innovative approach to humanoid robotics for this project.”

Felix Haeckel, Team Lead CoC Physical AI for Production, said, “At our new Center of Competence for Physical AI in Production, we are pooling our expertise to make knowledge on AI and robotics widely usable within the company. In recent years, we have built up an international team of experts that, in addition to in‑house research and programming, is dedicated to the gradual integration of AI into the existing production system. At the same time, our team in Munich is driving its own robotics research to set up, support and further develop pilot projects in the field of Physical AI at our plants.”

Arnaud Robert, President of Hexagon Robotics, said, “We are very pleased to be working with the BMW Group to advance the use of humanoid robots in real‑world environments.”

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Bengaluru-headquartered L&T Technology Services (LTTS), a global leader in AI and Digital Engineering R&D, has entered into a strategic global partnership with Emerson, a global automation leader.

The strategic collaboration aims to accelerate system integration and product development across the industrial, transportation, semiconductor & aerospace and defence sectors.

Under the agreement, LTTS will act as a global System Integrator and technology development partner for Emerson’s NI (National Instruments) test and measurement platform. The partnership focuses on architecting software-defined, data-centric engineering environments that enhance system performance and sustainability.

As part of the understanding, LTTS will establish a dedicated CoE at its Mysuru campus in India. This hub will leverage NI hardware and software to drive applied innovation, test automation and validation workflows. The partners will co-develop solutions tailored for high-complexity sectors where resilience and engineering rigor are critical. The engagement also includes joint go-to-market initiatives and extended client support models to provide ‘lifecycle enablement’ for global enterprises.

Ritu Favre, President for Emerson’s Test and Measurement business, said, “Engineering environments are becoming increasingly software defined, data centric and interconnected. Our open, modular NI platform provides the architectural foundation organisations need to manage growing system complexity while accelerating validation and deployment cycles. Through our collaboration with LTTS as a global system integrator, we extend this platform into industry-specific implementations that help customers move from engineering uncertainty to operational confidence and leveraging the proven technology leadership of NI automated test and measurement solutions.”

Alind Saxena, Executive Director & President at LTTS, added, “Our clients in Mobility, Sustainability and Tech require engineering systems that are intelligent and future-ready. Our partnership with Emerson strengthens LTTS’ ability to architect and deploy such systems at scale.”

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Mumbai-headquartered SUV major Mahindra & Mahindra has successfully deployed AI-powered conversational voice agents to manage the massive customer outreach for the launch of its premium SUV, the XUV 7XO.

The initiative, led by the group’s dedicated Mahindra AI division, utilised AI-tech from ElevenLabs to handle high-volume customer interactions during the peak launch period.

The XUV 7XO, which premiered on 5 January 2026, represents Mahindra's most technologically advanced internal combustion engine (ICE) vehicle. To manage the typical surge in inquiries that accompany a major automotive launch, Mahindra AI opted for a scalable digital solution rather than traditional call centre expansion.

The AI voice agents, named nAIna, conducted thousands of concurrent outbound calls, engaging prospective buyers in natural, multi-turn conversations. Powered by ElevenLabs’ Text-to-Speech API, the agents provided human-like, low-latency responses in multiple languages. The campaign is said to have achieved around 8 percent conversion uplift in qualified inquiries, successfully routing high-intent leads directly to dealerships.

Using AI, the system provided ‘always-on’ support, contacting leads and answering queries outside of standard business hours.

Manjari Upadhye, Chief Marketing Officer, Automotive Division, Mahindra & Mahindra, said, “Large-scale launches need new ways to manage customer conversations. During the XUV 7XO launch, our partnership with ElevenLabs helped us successfully deploy AI voice agents to support peak demand and helped route queries to dealerships.”

Karthik Rajaram, GM & Country Head, India, ElevenLabs, added, “Automotive launches compress weeks of customer demand into days. Every call needs to sound as natural and responsive as the first, whether it is the tenth or the ten-thousandth. This partnership with Mahindra showed that AI voice agents can operate at enterprise scale in India - handling thousands of concurrent calls in multiple languages without compromising conversation quality. This sets a new benchmark for how automotive brands can engage buyers at launch.” 

Following the measurable success of the XUV 7XO campaign, Mahindra AI plans to integrate these intelligent voice layers across the entire automotive lifecycle, including service reminders, follow-ups, and long-term customer engagement workflows.

The XUV 7XO is positioned as the premium evolution of the XUV700, priced between INR 1.5 million and INR 2.55 million. It is the first vehicle in India to feature the combined Dolby Vision and Dolby Atmos entertainment experience, alongside a ‘Coast-to-Coast’ triple-screen HD display and Level 2 ADAS safety features.

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MathWorks, a leading software tools company, recently concluded MATLAB EXPO 2026 today, hosting over 1,300 engineers, scientists and industry leaders to discuss the transition of generative AI, engineering copilots and agentic AI from experimental phases to production-scale deployment.

The event focused on the integration of AI-assisted design and simulation into Model-Based Design workflows across industries such as automotive, aerospace and semiconductors. Discussions highlighted the importance of maintaining engineering rigour, traceability and safety while utilising automated workflows.

At the event, MathWorks leaders Seth Deland and Avinash Nehemiah demonstrated how agentic AI capabilities in MATLAB and Simulink are accelerating simulation-led decision-making and system deployment.

Savyasachi Srinivas, VP at Collins Aerospace, detailed the use of AI-enabled knowledge systems and digital twins to move aerospace products from initial concept through to formal certification.

The event saw a panel discussion featuring representatives from Boeing, Mercedes-Benz R&D India, TCS, HSBC and the Indian Institute of Science addressing the critical need for human oversight and verification when validating AI-assisted outputs in real-world systems.

Also, the event saw technology demonstration including Raftar Formula Racing from IIT Madras, displayed their competition-winning race car designed using MathWorks tools.

The highlight at the UAV Pavilion saw drone and eVTOL (electric Vertical Take-Off and Landing) platforms from Speedgoat, Zmotion Autonomous Systems and Reude Technologies.

Sunil Motwani, Country Manager – Sales and Service – MathWorks India, said, “This year’s MATLAB EXPO reflected growing industry interest in applying GenAI, copilots and agentic AI to engineering workflows in ways that improve productivity while preserving validation, traceability and safety.”

The conference underscored a consistent industry shift: engineering teams are moving beyond basic AI experimentation toward certification-ready systems where AI agents accelerate design and verification while keeping engineers central to the decision-making process.

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Hyderabad-based electric vehicle manufacturer Olectra Greentech has announced the adoption of Dassault Systemes’ 3DEXPERIENCE platform.

The collaboration is designed to create a digitally integrated product development ecosystem, aligning Olectra's engineering processes with global OEM standards.

The 3DEXPERIENCE platform provides a unified environment that connects design, simulation and manufacturing. By implementing this system, Olectra aims to move toward virtual twin technology and model-based engineering, allowing it to validate vehicle designs in a virtual space before physical prototyping.

Key Objectives of the Collaboration:

• Digital Integration: Transitioning from component-level engineering to system-level digital orchestration.
• Accelerated Time-to-Market: Reducing innovation cycles through seamless collaboration between engineering and manufacturing teams.
• Virtual Validation: Using simulation to ensure precision and reduce the need for multiple physical prototypes.
• Scalability: Developing new electric bus and truck platforms capable of meeting international benchmarks.

Mahesh Babu, MD, Olectra Greentech, said, At Olectra, we see the future of mobility being shaped by electrification and digital engineering. As part of our commitment to transforming mobility through accessible innovation and a pragmatic future, we are making significant investments in developing new bus and truck platforms. Our collaboration with Dassault Systemes and adoption of the 3DEXPERIENCE platform will play a vital role in building these to global standards and aligning with global benchmarks. This enables us to move faster, design smarter, and deliver with world class precision. As India accelerates its EV transition, we remain focused on leading in both deployment and engineering excellence.”

Deepak NG, Managing Director, India, Dassault Systemes, added, “Our collaboration with Olectra reflects a forward-looking shift toward integrated, platform-driven innovation, enabling faster, smarter, and more sustainable electric vehicle development. Together, we aim to strengthen the transformation of India’s mobility ecosystem through virtual twin experiences.”

The adoption of the platform comes as Indian manufacturers increasingly shift toward platform-based engineering to manage the complexity of next-generation vehicle architectures and drive sustainable growth in the EV sector.

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