Harman India Expects Automotive Business to Double in Five Years

Harman expects its automotive business in India to double over the next five years, betting on rising demand for connected vehicles, software-driven technologies and premium in-car experiences as the country's passenger vehicle market expands.

The Samsung-owned automotive technology company supplies infotainment systems, connected vehicle technologies and audio systems to carmakers including Tata Motors, Mahindra and Maruti Suzuki. It also exports products manufactured in India to global markets, including Europe.

"We are the fastest-growing market for sure. I think in the next five years, maybe we will double easily," Krishna Kumar, MD and senior vice president at Harman India and Harman Automotive R&D country lead, told Autocar Professional.

India has become an increasingly important market for Harman as consumers seek more technology in their vehicles and automakers add features that were once reserved for luxury models to cars at much lower price points.

"There are two reasons why India is a very important market for us," Kumar said. "One is that the number of cars per 1,000 people is only around 35 today. The scope for us to go from 35 to 70 or 100 is huge. Indians are not shying away from technology. They want to use the best of the best technologies in their cars."

The company entered India as a global engineering centre more than a decade ago and has since expanded into manufacturing and product development for domestic automakers.

It now manufactures infotainment systems, speaker assemblies and telematics units at its Pune facility, which was expanded last year following an investment of about Rs 350 crore. Harman's cumulative investment in the country has crossed Rs 550 crore, Kumar said.

Beyond manufacturing, India has become Harman's largest engineering base globally, employing around 4,000 engineers across Bengaluru and Pune. Kumar said the country's role is also shifting from engineering support to innovation, with Indian teams leading the development of several connected vehicle technologies.

"I think we should now become the innovation hub for the global market, not just the engineering hub," he said.

Kumar said future growth would be driven by software, connected vehicles and intelligent cockpit technologies as automakers compete to improve the in-car experience.

"The in-cabin experience for us is going to be the next big thing. Software is becoming the most important thing in this entire ecosystem. There is only limited hardware differentiation; it is all about software," he said.

Harman's automotive business in India, which caters to passenger vehicles, includes car audio, intelligent cockpit, connectivity and automotive engineering services.

The car audio business includes premium brands such as JBL, Harman Kardon and Infinity, while the intelligent cockpit division develops infotainment systems and digital cockpit electronics.

The connectivity business focuses on telematics solutions that enable vehicles to connect to the internet through 4G, 5G and satellite communication, while the engineering services arm provides software development and engineering support for automotive customers.

In India, Harman supplies JBL audio systems to Tata Motors, Harman Kardon systems to Mahindra and Infinity-branded products to Maruti Suzuki, besides providing infotainment electronics to several automakers.

Kumar said Harman's strongest presence continues to be in car audio and intelligent cockpit systems, which have traditionally been the company's core businesses.

However, he expects the connectivity segment to emerge as a major growth driver as connected vehicles become mainstream. Telematics is a relatively new business for the company, but Harman has invested heavily in it as more vehicles come equipped with internet connectivity.

"I am envisaging that there will not be many cars which will not have any connection at all. All cars will be connected. Some kind of connection," he said.

The company is also preparing to strengthen its ADAS capabilities through its acquisition of ZF's passive safety business, although Kumar declined to discuss integration plans before the transaction is completed.

While global supply disruptions, including shortages of electronic components and rare earth materials, remain a challenge, Kumar said the disruptions are encouraging both automakers and suppliers to build more resilient supply chains.

"Every company wants to be regionally more resilient, and that actually is helping," he added.