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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LG Innotek has expanded its partnership with Zoox to supply camera modules for the serial production of its purpose-built robotaxis. The agreement marks an extension of the multi-year relationship between the two companies as Zoox scales up its autonomous vehicle manufacturing.

It was last year, Zoox opened a serial production facility in Hayward, California, to manufacture its robotaxis and launched a ride-hailing service in Las Vegas.

As per the agreement, LG Innotek will supply high-resolution automotive cameras as part of the robotaxi's sensor suite, which provides 360-degree coverage through overlapping fields of view.

The camera modules feature five fields of view depending on their mounting positions across the vehicle. Built with optical design technology adapted from mobile camera modules, the units are waterproofed to operate under varied environmental conditions. The components are currently being fitted to Zoox robotaxis as part of the vehicle's core perception hardware system.

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Gabriel India, the listed flagship company of Anand Group, has entered into a joint venture with South Korea-based HL Klemove to acquire a 30 percent minus one share stake in HL Klemove India for USD 98.44 million (INR 9.35 billion).

The joint venture will focus on the development, manufacturing and commercialisation of autonomous driving components, Advanced Driver Assistance Systems and automotive electronics.

The product portfolio includes radar, front cameras, LiDAR, automated driving and parking control units with embedded ADAS software, brake electronic control units, steering electronic control units, chassis control units and torque sensors.

Jaisal Singh, Vice-Chairman, Anand Group, said, “As a key growth engine of the Anand Group, Gabriel India is focused on building scale, enhancing competitiveness, and broadening its presence across high-growth automotive segments. Our latest joint venture with HL Klemove represents a strategic step forward in this endeavour.”

Anjali Singh, Executive Chairperson of Anand Group and Gabriel India, said, “Bolstering our position across critical automotive systems while expanding our participation in future-oriented mobility and automotive technology segments, this new JV for autonomous driving and automotive electronics marks an important inflection point, enabling Gabriel India to further diversify its portfolio and strengthen its participation in emerging mobility segments.”

Mahendra K Goyal, Group CEO, Anand and Managing Director of Gabriel India, said, “Beyond unlocking new opportunities for growth, this collaboration will foster deeper OEM engagement, expand our participation in future mobility solutions and create enduring value for all stakeholders.”

The investment aligns with Gabriel India’s strategy to expand into automotive sectors, following previous joint ventures in sunroofs, lubricants, electric vehicle fluids and precision fasteners.

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CarYaar Auto Private Limited, a DPIIT-recognised technology startup, has announced the appointment of Sahaib Singh as its new Co-Founder and Head of Technology. The company, which operates within India’s fragmented car servicing ecosystem, is focused on integrating transparency and digital trust into the automotive aftermarket. Singh’s arrival marks a pivotal moment for the firm as it works to expand its technological infrastructure and formalize a sector traditionally characterised by informal practices.

Bringing over a decade of experience as a full-stack technologist across mobility, freight and artificial intelligence platforms, Singh will now spearhead the company’s technology strategy and product development. His leadership comes at a critical juncture as CarYaar advances its integrated digital platform, which aims to seamlessly connect car owners, workshops and other stakeholders within the automotive service network. The company is prioritising practical solutions over complex enterprise systems, developing a mobile-first, offline-capable and WhatsApp-native interface to ensure accessibility for multi-brand workshops and customers alike.

Under Singh’s technical direction, the platform is being tailored to serve three distinct user groups with specific operational tools. Workshops are equipped with digital job cards, photo-based inspections, parts tracking and billing systems, while service advisors and managers receive web-based applications for estimate creation and analytics. For car owners, the service enables booking, real-time job tracking and digital payments through WhatsApp, eliminating the need for a separate application. The overarching goal is to use technology not merely to digitise existing processes but to fundamentally enhance the relationship between vehicle owners and service providers.

CarYaar’s model emphasises transparency through features such as real-time photo documentation, pre-approved estimates and digital billing, offering customers clear visibility into their vehicle’s service journey. Currently operating with a network of certified empanelled workshops in the Mumbai Metropolitan Region, the startup is actively building a broader technology-enabled ecosystem that includes multi-brand services, roadside assistance and spares management. This strategic expansion reinforces the company’s commitment to developing simple, accessible and genuinely useful technology for the Indian workshop environment.

Joel Daniel D’Souza, Co-Founder & Director, CarYaar Auto Private Limited, said, “Sahaib brings a strong combination of technology depth and experience across mobility and emerging technology platforms. As we scale CarYaar, technology will be central to how we connect customers and workshops, create transparency and bring greater efficiency to the entire ecosystem. His leadership will be critical as we move from building the foundation to scaling the platform.”

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Tata Communications and Tata Motors Passenger Vehicles have entered into a collaboration to equip the Sierra.ev with embedded 5G cellular connectivity, targeting the deployment of software-defined vehicles (SDVs) in India.

As per the understanding, the Tata Communications MOVE Connected Vehicle Platform will integrate into the car's software architecture, designated as N.IO. The system supports artificial intelligence applications, content streaming, over-the-air software updates, optional subscription packages and vehicle functions including emergency calls, remote assistance and real-time diagnostics.

Vivek Manglik, Executive Vice-President of Interaction Fabric at Tata Communications, said, “Tata Motors Passenger Vehicles has consistently set benchmarks for innovation in the automotive industry, and we are excited to collaborate on the launch of the Sierra.ev. As vehicles evolve into intelligent ecosystems that enable a growing range of services and applications, the underlying digital fabric will be central to fostering innovation and scaling new capabilities. This collaboration reflects a shared commitment to shaping a smarter mobility experience that will securely enhance convenience and personalisation.”

Sven Patuschka, CTO, Tata Motors Passenger Vehicles, said, “As vehicles become increasingly software-defined, highly intuitive digital connectivity and services will play a central role in shaping customer experiences. The Sierra.ev marks an important step in this evolution, and our collaboration with Tata Communications provides the robust digital backbone required to deliver seamless connectivity, continuous innovation, and enhanced in-vehicle experiences. Together, we are enabling technologies that allow vehicles to adapt, improve, and deliver greater value throughout their lifecycle.”

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