For decades, the business of making a car was a masterful symphony of hardware integration. Automakers designed the vehicle, and a vast ecosystem of Tier 1 suppliers provided the discrete components: the engine control units (ECUs), the infotainment systems, the braking modules. But as the locus of value rapidly shifts from hardware to software, car manufacturers are no longer content to merely assemble the parts. They are seizing control of the code, as time-to-market for products has reduced drastically.
The clearest evidence of this tectonic shift has emerged in the past 18 months. During this period, BlackBerry QNX, a company whose foundational software runs in over 255 million vehicles, has seen a fundamental change in its customer base. Of its more than 100 new design wins, a staggering 67% have been directly with the Original Equipment Manufacturers (OEMs) themselves, rather than with their traditional Tier 1 suppliers.
"OEMs are becoming, essentially, software companies," observes Dhiraj Handa, Senior Vice President and General Manager, Asia-Pacific, QNX, noting that industry giants are hiring thousands of software engineers to bring development in-house.
This software grab is driven by necessity. Vehicle architecture is undergoing transformation at a rapid pace, moving away from a distributed system of hundreds of simple ECUs toward a centralized, high-performance compute (HPC) model. As semiconductor partners like NVIDIA, Qualcomm, and others unleash a host of powerful System-on-Chips (SoCs), the complexity has skyrocketed. Managing this requires a holistic software strategy that OEMs are determined to own.
QNX, a division of BlackBerry Limited, is a leading provider of operating systems, hypervisors, middleware, solutions, and development tools, along with support and services to the automotive industry. Apart from automotive, the Ottawa (Canada)-based company also serves other sectors such as medical devices, industrial controls, robotics, commercial vehicles, rail, and aerospace and defense. With over 255 million cars on the road, QNX is deeply integrated into the global automotive ecosystem, engaged with all of the top 10 automakers, all 7 of the top Tier 1 suppliers, and 24 of the 25 largest global electric vehicle (EV) makers.
India Business
According to company officials, just four or five years ago, QNX's presence in India was minimal, largely managed through a network of distributors. Recognizing the market's growing potential and sophistication, the company made a strategic shift to establish a direct presence, beginning by hiring a dedicated go-to-market team of sales managers and field application engineers. This move was a natural extension of its success in other major Asian markets like China, Japan, and Korea, where it was already doing well.
This initial step was soon followed by a more significant investment. About two years ago, QNX decided to establish not just a commercial team but also a center of excellence for R&D and expert engineering services in Hyderabad. This 100-member facility now serves as a crucial hub, providing local support to Indian customers while also contributing to global projects, Handa pointed out.
This intensified focus on India has yielded substantial results. "The company's revenues have multiplied three to four times over the last five years," Handa explained, adding that it has forged deep engagements across the Indian automotive ecosystem. QNX is now working with major domestic OEMs like Mahindra and Tata Motors, with its software powering the cockpit in Mahindra's vehicles, and is in heavy discussions with practically all other major automakers in the country. Its collaboration extends to both global and domestic Tier 1 suppliers, such as Minda, and SDV suppliers such as KPIT.
Looking ahead to the next five to ten years, the vision for India is centered on enablement and expansion. The core of the vision, Handa explains, is to empower the increasingly sophisticated Indian automotive industry with the foundational tools needed for the software-defined era.