Continental’s spin-off of its automotive business into AUMOVIO marks a strategic shift, placing India’s engineering and manufacturing strengths at the center of its push into self-driving and software-defined vehicles.
09 Jul 2025 | 1000 Views | By Shahkar Abidi
German automotive giant Continental AG is increasingly handing the keys to its future to India, transforming the nation from a key market into a critical command center for its global ambitions in autonomous driving and next-generation vehicle technology.
This strategic pivot comes as Continental prepares to spin off its ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
German automotive giant Continental AG is increasingly handing the keys to its future to India, transforming the nation from a key market into a critical command center for its global ambitions in autonomous driving and next-generation vehicle technology.
This strategic pivot comes as Continental prepares to spin off its automotive business into a new entity, AUMOVIO. The move is part of a transformation aimed at dominating the era of self-driving and software-defined vehicles, with India’s engineering and manufacturing prowess at its core.
The push into India is timed to capitalize on a booming market. As per an industry research report by Markets and Data, the nation's software-defined vehicle market is projected to surge from USD 2.69 billion in fiscal year 2025 to USD 9.16 billion by 2033, reflecting a compound annual growth rate of 16.56%. This rapid expansion is fueled by rising consumer awareness of vehicle safety, a government push for sustainable transportation, and the growing integration of Over-The-Air (OTA) software updates, which allow for remote vehicle enhancements.
Dr. Ismail Dagli, Head of Continental’s Autonomous Mobility Business Area and a member of its Automotive Board, is one of the key architects of this India-centric strategy. His career path mirrors the industry's own technological journey. After earning a doctorate on the subject of artificial intelligence in autonomous driving, Dr. Dagli began his career in 2005 as a development engineer. He held several leadership roles at Bosch, including Vice President of Engineering and Project Management in the USA, before joining Continental in 2020 as Senior Vice President of Research and Development for ADAS. With the organizational realignment of Continental in 2022, he took over the position as head of the Smart Mobility business area. Since October 2023, his new position is Head of the Autonomous Mobility and Commercial Vehicles Business Area.
Drawing from this extensive background, Dr. Dagli characterizes the automotive industry as being in a profound transformation. He asserts that AI is no longer a futuristic concept but a fundamental tool. "AI is a prerequisite for everything that we are doing in the future in autonomous mobility," he says. He recounts a personal experience from 25 years ago during his PhD, where his "simple AI" for autonomous driving required a "trunk full of computers" to barely run. The contrast with today's capabilities underscores the speed of change.
Dr. Dagli emphasized India's evolving role in the company's ambitious goals, which include expanding its supply chain and overall manufacturing footprint within India. The plan involves shifting more component production and value creation to its Indian organization to support the newly formed AUMOVIO.
This is a critical, make-or-break moment. Continental is targeting long-term sales of over €24 billion for AUMOVIO. The unit, which generated approximately €19.6 billion in sales in fiscal 2024, already employs around 93,000 people across more than 50 countries. Its portfolio is a catalog of the modern car's brain and nervous system, including advanced sensor solutions, digital displays, and sophisticated brake and comfort systems.
For Dr. Dagli, who oversees a significant portion of this high-tech portfolio, India’s role is defined by a robust three-pillar strategy that goes far beyond sales. With a team of nearly 6,000 automotive employees in India—1,700 of whom work directly in his autonomous mobility division—the country represents a formidable hub of talent.
"I visit India two to three times a year. But I promised the team that it's going to be more frequent," Dr. Dagli remarked during a recent visit in early July, signaling a hands-on approach to managing this crucial asset.
The first pillar of the strategy is to lead and grow Continental’s business within India itself. As Indian consumers demand more sophisticated vehicles, the need for localized solutions has become paramount. Dr. Dagli stressed that a one-size-fits-all global platform is not enough. Customization is essential, especially in autonomous mobility, to address India's unique and often chaotic traffic conditions. This requires adapting to a specific "Operational Design Domain (ODD)"—the precise conditions under which a self-driving system can operate safely. While leveraging global platforms for cost-effectiveness, the Indian team is tasked with tailoring technology to meet the distinct needs of the local market.
Beyond its domestic focus, the Indian team holds a vital global mandate. Under the second pillar, it carries significant responsibility for worldwide product development. Dr. Dagli revealed that many products sold across the globe are now being developed from scratch in India. This marks a profound shift, demonstrating a high level of trust in the Indian engineering teams to conceptualize, design, and deliver complex systems for international markets.
The third, and perhaps most crucial, pillar positions India as a global center of excellence and expertise. The team is not just executing tasks assigned from headquarters; it is functioning as a knowledge powerhouse, contributing high-value insights that guide Continental's broader engineering network. The objective, Dr. Dagli explained, is not merely about "doing work here" but about "doing sophisticated, valuable work here."
This elevation in responsibility requires a parallel focus on talent development. "We have hired a lot in the past and we have to make sure that we educate and bring the people to a level where they contribute to this value network," he said. "We call it the next level, and this is why I have had the discussion with the team."
Addressing the widely acknowledged price sensitivity of the Indian market, Dr. Dagli offered a nuanced perspective, noting that it is "not uniform." He identifies two distinct segments. The first is a large-volume market where advanced driver-assistance systems (ADAS)—like adaptive cruise control and automatic emergency braking—are becoming commoditized, facing intense price pressure. Here, Continental leverages economies of scale and aggressive cost management.
However, a second, influential segment exists where customers prioritize and are "willing to pay for innovation capabilities," particularly for premium and cutting-edge vehicles. As a "full stack supplier" that provides everything from sensors to software, Dr. Dagli believes Continental is uniquely positioned to serve both. By optimizing system architectures and employing rigorous "design-to-cost activities," the company can engineer competitive solutions for the mass market while delivering the high-end innovation the premium segment demands, Dr. Dagli highlighted.