Modern vehicles are evolving into sophisticated platforms where software is as critical as the engine, creating an opportunity for component makers to work on software solutions.
07 Jan 2025 | 3715 Views | By Prerna Lidhoo
The days when cars were merely machines to get from point A to point B are a thing of the past. Modern vehicles are evolving into sophisticated platforms where software is as critical as the engine. With technology reshaping mobility, the focus has shifted to creating “software-defined vehicles” (SDVs) that ...
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The days when cars were merely machines to get from point A to point B are a thing of the past. Modern vehicles are evolving into sophisticated platforms where software is as critical as the engine. With technology reshaping mobility, the focus has shifted to creating “software-defined vehicles” (SDVs) that offer connectivity, customisation and continuous updates.
The emergence of subscription-based models to monetise features once considered standard is proof that global automakers are taking note. For instance, BMW experimented with subscriptions for heated seats, while Toyota offers remote start functionality as a paid service through its app.
Hyundai, too, provides connected-car services, including real-time traffic updates, on a subscription basis. General Motors’ OnStar platform offers safety and concierge features, from roadside assistance to in-car Wi-Fi.
As these services gain traction, they underscore the growing importance of seamless software integration and regular updates to enhance user experience. Companies like Continental, which specialise in automotive technology, are crucial enablers of such tech solutions.
Continental India’s president and CEO Prashanth Doreswamy identifies six key trends driving this transformation: automated, connected, electrified, shared, convenient and sustainable mobility.
While electrification is a major component, Doreswamy says it forms only 30% of the transformation, while the remaining 70% encompasses technologies such as connectivity, assisted driving functions and sustainability-driven features.
Last year, the Indian automotive industry’s volumes stood at about 5.45 million light vehicles, which comprise passenger cars and the smaller pickups.
Doreswamy expects that number to reach about 7.5 million vehicles by 2030, and buyers are increasingly demanding new technologies and features. And that’s good news for companies like Continental. “This will power an increase in the content per car to an extent where we would see an addition of about $2,000 into the average car [in terms of value]. India is catching up to this global trend faster than we expected,” he said.
Innovating for India and beyond
Since its inception in 2008, Continental India has combined global expertise with local insights, delivering solutions tailored to India’s unique mobility challenges. Operating out of Bengaluru, with manufacturing plants nationwide, the company’s portfolio includes advanced tyres, powertrain technologies, driver-assistance systems and connected-mobility solutions, among other things, which are fast adapting to the rapid technological transitions shaping the automotive industry.
According to Ganesh Rao, director of R&D at Continental Automotive India’s ADAS business unit, the Indian market’s enthusiasm for new automotive technologies is comparable to the swift adoption of smartphone technology in the consumer sector. “The adoption of technology in India is something we have seen in many areas. Now, it’s reflecting in the automotive world,” he notes.
From ADAS to connectivity and infotainment, the Indian market is keeping pace with global trends. One of the standout trends in India is the maturity leap in ADAS adoption. Rao explains, “India directly jumped to Level 2 maturity in ADAS, skipping levels 0 and 1.” This leap has introduced advanced features such as over-the-air (OTA) updates, making premium SUVs in India comparable to software-defined vehicles seen globally.
For Continental India, localisation is critical in addressing the country’s value-driven market. “Our goal is to make advanced technologies affordable by localising R&D and production,” says Doreswamy. Continental has achieved 80-90% localisation across most product categories, barring components like semiconductors.
The company has significantly reduced costs through strategic partnerships, such as a joint venture with Japan’s Nisshinbo for brake-system localisation. Additionally, its tech centre in Bengaluru—staffed with 6,000 engineers—plays a pivotal role in adapting global technologies to local needs.
“One of our biggest challenges while bringing in these technologies is how much we can fine-tune them to the India market use cases and requirements so that they are not overly designed, and instead of importing the parts, how much you can localise here, thereby cutting down on the cost,” says Doreswamy.
As a global player, Continental benefits from its international presence, but localisation remains a cornerstone of its strategy. “We always work with the theme ‘local for global.’ Our tech centre in Bengaluru and production hubs across India ensure this,” says Rao. A prime example of this localisation success is the development of radar technology for two-wheelers.
“This product, designed to detect blind spots and warn drivers, was entirely built in India. After proving its success here, we’ve taken it to global markets like Japan and Europe,” he adds. India’s unique capabilities, coupled with its robust local ecosystem, are positioning it as a hub for global automotive innovation. “If it works in India, it can work globally. That’s our mindset,” remarks Rao.
With successful examples like ABS and radar for two-wheelers leading the way, the “local to global” approach is becoming a reality. Doreswamy adds, “There are unique capabilities we built over the years servicing the Indian market. Now, we actually can build global products from here.”
Rao reiterates the importance of localisation. “In India, we face challenges like infrastructure, legislation and unique driving conditions. Products have to be relevant for the market.” For instance, ADAS requires vast amounts of localised data to work seamlessly. “We’re building libraries to understand and adapt to Indian roads, ensuring products are both effective and affordable,” he adds.
Accelerating AI Adoption
Artificial intelligence (AI) is one of the key elements in revolutionising the industry, be it automated driving or personalised user experiences. “AI is essentially putting intelligence behind the wheel,” explains Latha Chembrakalam, head of TCI at Continental Automotive India.
Driver-monitoring systems that detect fatigue or distractions, intelligent traffic management for reduced carbon footprints and digital twins in manufacturing are just a few examples. “AI is a game-changer for not just cars but also supply chain management, manufacturing and testing. Digital twins, virtual models of physical systems, combined with AI, enable smarter decision-making across these domains,” she adds.
According to Doreswamy, EVs, combined with AI, will be a huge growth driver in the future. “In areas like two-wheelers, three-wheelers and intercity buses, India has made significant progress. However, passenger EV adoption remains below 2% of total car sales due to high battery costs. The good news is that advancements in battery technologies and cost reductions are making EVs increasingly competitive,” he says.
While India has traditionally lagged in technology adoption, Chembrakalam believes the gap is narrowing. “Indian OEMs are very tech-savvy now. They’re informed and open to integrating global technologies,” she says. Continental is also collaborating with organisations such as the Automotive Research Association of India and government bodies to shape legislation, ensuring smoother implementation of new technologies.
“Standardisation and better infrastructure are crucial for innovations like vehicle-to-everything (V2X) communication to thrive in India,” she explains.
Chembrakalam also points to the growing demand for personalisation. “Consumers now want custom experiences—mood lighting, personalised temperature settings and infotainment tailored to their preferences,” she says.
OTA updates further enhance this experience by allowing software upgrades and feature additions post-purchase. She provides an example: “In Europe, you can activate seat heating as a subscription during winter. Predictive maintenance and feature upgrades through OTA are catching on in India, too.”
Despite challenges like localisation in R&D and cost optimisation, she is optimistic. “India’s unique ecosystem has both bullock carts and connected devices on the road, which makes it both challenging and exciting,” she says. By focusing on affordability, localisation, and advanced technologies like AI and OTA, Continental aims to drive safer, smarter and more personalised mobility solutions. “Innovation is not just about creating new technologies; it’s about tailoring them to fit the market’s needs,” remarks Chembrakalam.
Smart safety solutions
One of the most exciting shifts in the automotive world is the transformation of cars into extended Internet of Things devices. “We’ve experienced comfort at home and at work; now, we expect the same in our cars,” Doreswamy says. Continental’s software teams in India are developing predictive maintenance platforms, personalised in-car systems, and OTA updates that enhance vehicle performance and user convenience.
With India’s high road accident rates, safety is a national priority—and Continental India is addressing it head-on, Doreswamy says. Through ADAS, including collision avoidance, adaptive cruise control and lane-keeping technologies, the company is creating safer driving experiences tailored to Indian road conditions. “Safety isn’t optional; it’s foundational. We’re building a future where technology actively prevents accidents,” he adds.
Traditional vehicle architectures, which rely on multiple distributed Electronic Control Units (ECUs), are moving towards zonal and centralised high-performance computing (HPC). “Today’s cars may have 70-80 ECUs, but their distributed architecture limits orchestration,” Doreswamy explains. By transitioning to zonal HPCs and eventually to integrated cross-domain HPCs, automakers can achieve faster functionality integration, reduced development time and enhanced consumer experiences.
According to Rao, safety is a key area for the company, especially with products like ABS and radar for two-wheelers. “These are helping democratise safety in India while also gaining traction globally. Additionally, as electrification advances, Continental’s sensors and software solutions for electric mobility continue to find relevance,” he adds.
However, costs inevitably rise with advancements in automotive technology. Chembrakalam acknowledges this challenge: “As cars become more connected and reliant on software, the initial investment in cloud infrastructure and AI models can be high. But modular, scalable platforms can mitigate recurring costs.” She also predicts that by 2030, software could account for about 40-50% of a car’s value from about 10% now.
Vision 2030
As India’s automotive landscape evolves with electrification, automation and shared mobility, Continental India is investing heavily in R&D, fostering local partnerships and delivering transformative technologies to make mobility safer, cleaner and more connected. Doreswamy says that until a few years back, there was something called CASE (connected, automated, shared and electrified mobility). “As we evolve, two more things have been added: convenient and sustainable mobility.”
He believes that future adoption will not be driven by regulations but by consumer preferences. “For example, the preference for connectivity and electrification is not driven by regulations; it will be driven by individuals’ preferences more.
Chembrakalam adds that India, with its high accident rate, especially among two-wheelers, underscores the urgency for safety innovations. “We have a vision called ‘Vision Zero,’ which focuses on zero accidents, zero injuries and zero fatalities,” she explains. From airbags and brake systems to ADAS, Continental’s products are designed to meet this ambitious goal.
However, affordability and suitability remain critical. “Affordability is key for the Indian market, but it cannot come at the cost of accuracy,” she says. Continental has developed cost-effective radar systems tailored to India’s unique driving and infrastructure conditions, she adds.
Looking ahead, Continental India sees several growth opportunities. “First, we focus on user experience, which involves enhancing the functionality and aesthetics of various display systems. Then, we have SAM (safety and motion controls), a comprehensive approach to ensuring holistic safety across systems. The third area is architecture networking, encompassing body electronics, high-performance computers, zone control units and related technologies. Lastly, we have autonomous mobility. These are significant growth areas for us,” Doreswamy says.
While India’s automotive industry is expected to grow by 6–7% this year, the company anticipates its growth to be at least double that rate. “This growth is largely driven by increasing content per vehicle, which is outpacing growth in sheer production volumes,” he said.
Amid all this, Continental India is not just focusing on localisation but also software-hardware decoupling and scalable platforms to deliver solutions tailored to both India and global markets.