As global automakers change their research and development (R&D) focus from mechanical components to software and electronics to fuel in-car innovation, Tata Technologies, a product engineering and digital services provider, it is increasing the scope of its Software-Defined Vehicle (SDV) solutions.

Nachiket Paranjpe, President, Global Automotive Business at the company says, “While the overall car industry growth is only about 3–4 percent per year, the SDV segment has grown almost 25–30 percent.”

“There’s strong global demand for talent skilled in SDV-related technologies, especially in C++, Python, Linux, and other key platforms. Tata Technologies has built a significant SDV workforce with a team of about 1000 engineers just in India and 1600 globally,” adds Nachiket.

“With the China story for Western OEMs facing challenges and market shares declining, OEMs are now intensely focusing on India. They recognize India's significant disposable income and a large middle class seeking luxury mobility at specific price points,” adds Nachiket.

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It is anticipated that this change will spur innovations that lower total price points, increasing the accessibility and comfort of items for the Indian market segment.

The business announced in January that it had joined forces with the BMW Group to form BMW TechWorks India, a joint venture that would concentrate on creating SDVs and other automotive software solutions by establishing an R&D facility in India.

SDVs will be realized more quickly because of the partnership's unique solutions for central and zonal gateway controllers, automotive cockpit domain controllers, and ADAS (advanced driver-assistance system) platforms. 14 service providers were vetted, according to Paranjpe, and the agreement was estimated to be worth $25 million.

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The company, which is a part of the Tata Group, is optimistic about its performance this year and its capacity to produce whole automobiles. Despite a slight decline in operating revenue of 1.18 percent to Rs 1,285.65 crore in Q4 of FY2025, the company recorded a 20.12 percent growth in consolidated net profit to Rs 188.87 crore.