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Strategy and Collaborations Set to Narrow the India-China Economic Divide Soon

India ranks third globally in automotive production, trailing only China and the US, with a 2023 output of 25.9 million vehicles, closing the production gap with China's roughly 30 million units.

Strategic Finance and Alliances Between India and China: Closing the Distance Through Investment...
Strategic Finance and Alliances Between India and China: Closing the Distance Through Investment and Collaboration

Strategy and Collaborations Set to Narrow the India-China Economic Divide Soon

In a significant move, Tata Motors has implemented a cloud-based Internet of Things (IoT) solution that supports its entire portfolio, including electric, commercial, and passenger vehicles. This innovative solution enables real-time diagnostics and over-the-air updates, marking a significant leap in the automotive industry.

International automotive giants are also recognising India's potential, with companies like BMW, Volkswagen, and Ford entering partnerships with Indian companies for software solutions and electric mobility development. Cities like Bangalore, Pune, and Chennai are seeing a surge in these collaborations.

BMW TechWorks India, a new venture by BMW Group, has already commenced operations with 100 employees across Pune, Bengaluru, and Chennai. The company aims to expand its workforce to over 1,000 staff by the end of 2025.

Infosys, another Indian tech giant, has formed key automotive partners, although the details of these partnerships remain undisclosed. However, it has been announced that Infosys will collaborate with Swedish electric performance carmaker Polestar, focusing on in-car infotainment, software, user experience, and cloud-powered digital services.

Infosys' recent R&D acquisition, In-tech, will be leveraged in this collaboration. The company has also established a long-term strategic relationship with Daimler AG for comprehensive IT infrastructure transformation.

In another significant collaboration, Infosys and Polestar will work together on electric mobility solutions. The focus areas include in-car infotainment, software, electrical/electronics engineering, user experience, and cloud-powered digital services.

Meanwhile, Tata Elxsi has partnered with semiconductor company Arm to deliver advanced solutions using the latest Arm processors. The partnership aims to help automotive Original Equipment Manufacturers (OEMs) and tier-1 suppliers accelerate their transition to software-defined vehicles.

Tata Elxsi has also collaborated with Tata Motors to develop a unified connected vehicle platform. This partnership is designed to help automotive OEMs and tier-1 suppliers accelerate their transition to software-defined vehicles.

KPIT Technologies, another Indian tech company, has maintained ongoing collaborations with global automotive manufacturers focused on electric powertrain development, autonomous driving technologies, and vehicle diagnostics systems.

Recently, KPIT Technologies formed an alliance with Mercedes-Benz Research and Development India (MBRDI) to accelerate Software-Defined Vehicle (SDV) development.

In a major investment, VinFast has begun construction on its new integrated EV manufacturing facility in Thoothukudi, Tamil Nadu, investing Rs 4,000 crore over five years. This investment represents the first major automotive investment in southern Tamil Nadu.

Lastly, dSPACE has opened a software development centre in Thiruvananthapuram, Kerala, with the aim of doubling its workforce by year-end. The centre will develop technologies for electric mobility, autonomous driving, software-defined vehicles, safety functions, and virtual validation.

These collaborations and investments underscore India's growing role in the global automotive industry, particularly in the areas of software development, electric mobility, and connected vehicles.

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