The numbers tell a story that hardware specs cannot: India’s automotive audio market will more than double to $712 million within a decade, as per estimates, and Dolby Laboratories intends to capture the lion’s share before global rivals grasp the opportunity. With major players including Tata Motors, Mahindra & Mahindra, and Maruti Suzuki already signed, it is now seeking to extend its tie-ups with other OEMs, both local and global, that produce cars in India.
What has been helping Dolby hasten these efforts, as per Javier Foncillas, VP, Commercial Partnerships, Dolby Laboratories, is the company’s brand recognition in India, initially cultivated over decades through its presence in cinemas and more recently bolstered by partnerships involving live sports such as cricket, which holds a near-religious status in the country. For context, India is a massive hub for Dolby Atmos content, generating almost 48% of the world’s theatrical Dolby Atmos content.
Javier Foncillas, VP, Commercial Partnerships, Dolby Laboratories, said, “What really made a difference, I would say starting a year ago, was when we started entering into cars. Now, of course, the India car industry is dominated by three big players.”
Tata Motors Passenger Vehicles Ltd (TMPVL) recently partnered with Dolby Laboratories to equip its upcoming All-New Tata Sierra with Dolby Atmos immersive audio technology. The vehicle features a 12-speaker audio system designed to deliver multidimensional sound throughout the cabin. Dolby earlier made its India debut with the integration of its technology with Mumbai-based Mahindra & Mahindra for its electric-origin SUVs, BE 6 and XEV 9e. Likewise, Maruti Suzuki India Limited has launched the Victoris SUV with Dolby Atmos technology.
“Working with these local production car manufacturers is crucial because their vehicles are generally more affordable than some imports. This affordability helps ensure that the Dolby Atmos experience is available to mainstream consumers and not just exclusive to high-end cars, fulfilling Dolby’s goal of having its technology at every price point,” Foncillas added.
The development should be seen in the context of estimates by IMARC Group, suggesting the market size of the broader car audio market in India, which reached $336.01 million in 2024 and is projected to grow to $711.90 million by 2033, at a CAGR of 8.70% during 2025–2033.
A Software-Driven Solution
Dolby offers its Dolby Atmos experience to automotive companies as a software-based solution. Central to this offering is a special software kit that is installed directly into the car’s head unit. This software solution is essentially divided into two critical pieces: decoding and rendering. The decoding functionality is necessary for the car’s system to understand the specially mixed Dolby Atmos audio file. Once decoded, the rendering functionality takes over and is responsible for sending precise signals to each individual speaker within the car to effectively create the desired immersive sound experience. To integrate this technology, Dolby works closely with both car manufacturers (OEMs) and tier-one suppliers to develop a new software release that incorporates the necessary decoding and rendering functionality.
Further, offering a nuanced perspective on Active Noise Cancellation (ANC), Foncillas emphasized that while Dolby is deeply focused on cabin audio, it does not currently offer this technology. The reason is that many of its tier-one partners in the automotive industry already possess their own proprietary noise management offerings.
Integrating ANC with Dolby’s immersive audio experience (Dolby Atmos) presents a critical technical challenge because both systems rely heavily on algorithms. If the systems are not harmoniously tuned, the two functions can actively interfere with each other. “Now, the challenge is that when you tune the car, you have to keep both things in mind because the noise cancellation cannot work against the immersive sound experience, as they both use algorithms,” the top executive highlighted.
To manage this complexity, Dolby prioritizes close cooperation with tier-one suppliers that provide the noise cancellation systems. This ensures that when the car is tuned for Dolby Atmos, the noise cancellation technology does not degrade the immersive sound.
India as a Growth Hub
The company’s medium- and long-term vision for the Indian market is anchored by the dual goals of wide-scale product adoption and strategic R&D investment, transforming India into a significant global hub for the technology.
To realize this expansive growth, the company is committing capital to its technological infrastructure within the region, dedicating resources to research and development activities in Bengaluru. “Also, we’re investing in R&D here in India because we realize this is a long-term growth market for us,” Foncillas remarked, before continuing that this systematic expansion involves leveraging India not just for domestic consumption but also as an export market for both licensed products and content, utilizing the region’s strong software capabilities and brand recognition to accelerate market penetration.