India’s EV shift may be policy-led, but Continental is betting on software localization to drive lasting consumer demand and digital transformation.
In a candid assessment of India’s EV transition, Prashanth Doreswamy, President and CEO of Continental India, acknowledged that the shift to electrification is being driven primarily by government policies rather than organic consumer demand, while emphasizing the critical importance of software localization.
Speaking at the India EV Conclave organized by Autocar Professional at Hyatt Regency Delhi, Doreswamy made the striking observation that “electrification is forced on us through policies, not consumer demand driven,” highlighting a fundamental challenge facing the industry.
Despite this reality, Doreswamy outlined Continental’s strategy for the Indian market, stating that “growth is coming from software and software-based services. We should localise R&D in software first.” This represents a significant shift in thinking for traditional automotive suppliers.
He said Continental is committed to creating value in the Indian market by innovating high-tech mobility solutions with a renewed commitment to localization, focused on establishing itself as a leader in hardware excellence, software competence, and system expertise.
The company is pursuing what it calls an “in the market, for the market” strategy, which involves expanding electronics manufacturing, scaling up software development capabilities, and integrating software and electronics for faster market introduction of cutting-edge solutions.
Continental is poised to spearhead the Software Defined Vehicle (SDV) vision in India to develop state-of-the-art vehicle system functions powered by High Performance Computer (HPC), positioning the company at the forefront of the automotive industry’s digital transformation.
Doreswamy’s comments about policy-driven electrification echo concerns across the industry. High initial costs present a significant barrier for consumers, as EVs are typically priced 20% to 30% above their internal combustion engine (ICE) counterparts, making government incentives crucial for adoption.
Continental’s Bangalore center is supporting EV development projects completely, both by designing the hardware and software, and as electric vehicles gain acceptance in the Indian market, the company will explore options of localizing the entire value chain, right from R&D to manufacturing.
The company sees particular promise in two- and three-wheelers, believing they will be prompt in adapting to electrification because of the availability of charging options, fast charging and battery swapping facilities.
Continental is collaborating with local OEMs to deliver customized solutions with an emphasis on localization and investing to offer globally proven technologies at affordable prices.
Doreswamy’s frank assessment of the policy-driven nature of India’s EV transition raises important questions about long-term sustainability and the need to cultivate genuine consumer demand through improved products, lower costs, and better infrastructure – challenges that software innovation and deep localization could help address.