Picture this — you’re stuck in traffic and running late for work, but your 2-year-old car is quietly downloading an update that will help it navigate traffic more efficiently. It’s a more capable car than when you bought it — with better range, improved ADAS, enhanced parking assistance, and new features on the IVI system. The AI assistant also reserves charging slots, takes notes during your conference calls, and reduces energy consumption — almost every three months.
This is the future of mobility, and the promise of software-defined vehicles (SDVs): cars that think, learn, and improve over time. As India targets 30% EV adoption by 2030, software-defined EVs will become increasingly attractive to Indian drivers, merging advanced technology with the realities of Indian roads.
The core value of an SDV goes beyond mobility — it lies in the hyper-personalized experience delivered to the user. Software is a means to this end. An SDV can be viewed as a platform — one that fosters an ecosystem of continual enhancement across various aspects of daily life. Today’s cars are not just machines for transport; they are moving supercomputers. Some modern vehicles contain over 100 million lines of code, rivaling the complexity of an aircraft. In India’s growing EV landscape, companies like Tata Motors and Mahindra are not just making vehicles — they are crafting connected experiences.
Globally, the shift is evident. Toyota is reportedly aiming to hire 18,000 software engineers by 2025. Tesla, which pioneered over-the-air (OTA) software updates and is the world’s most valuable EV manufacturer, is preparing to enter the Indian market. Meanwhile, Indian software firms are partnering with global automotive giants. With its strength in software exports, India is well-positioned for this transformation.
However, the SDV revolution is not only about environmental benefits. It also brings simplicity in mechanical design and streamlined product lifecycle management. SDVs consolidate multiple ECUs into a centralized computing system, making it easier to manage both electro-mechanical and software components. Efficient Application Lifecycle Management (ALM) tools help address the complexity of managing these systems.
The software feature enhancements delivered via OTA updates are not just for maintenance — they make the vehicle an “appreciating asset.” These updates aren’t just like visiting the mechanic; they’re like installing a new gadget — and all while on the move. In a value-conscious market like India, such features could position SDVs as long-term investments.
To support EV growth, the Indian government launched the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India II) scheme with a ₹10,000 crore budget over five years from April 1, 2019. The Production Linked Incentive (PLI) Scheme for the automobile and auto component industry also offers financial incentives to boost domestic manufacturing of automotive technologies, including EVs. In the Union Budget 2025–26, the PLI scheme received an allocation of ₹2,818.85 crore.
These policies encourage automakers to prioritize smart, software-driven design, rewarding innovation and speed. But challenges remain. Cybersecurity and functional safety regulations must evolve to address software vulnerabilities. Reliable 5G connectivity — essential for real-time SDV operations — must also be scaled up. Accelerated 5G deployment could propel EV and SDV adoption even further.
Quietly, companies like PTC are enabling this transition by offering tools to manage system requirements and software-hardware lifecycles. By bridging technical gaps, they’re helping automakers innovate faster and compete in a rapidly evolving landscape.
SDVs represent India’s path to an electric future that is not only sustainable but also intelligent. With software at the core, OTA updates driving enhancements, and policy support paving the road ahead, India isn’t just adopting new vehicles — it’s redefining the journey. The future is here, and the road belongs to India.
Rajkiran C is Senior Director at PTC India. Views expressed are the author's own.