Tata Elxsi Sees Connectivity, Autonomous Tech Lead Next Wave of Auto Disruption

The modern car is undergoing its biggest identity shift in a century. It is no longer defined by horsepower or fuel type alone. Increasingly, it is defined by software, lines of code that manage batteries, enable driver-assistance systems, track performance in real time and update features long after the vehicle leaves the showroom.

At the centre of this transformation is the convergence of connectivity, autonomy, and electrification. What were once parallel technology tracks are now tightly interlinked. A connected vehicle generates data. That data powers predictive maintenance, battery analytics and over-the-air updates. Those updates improve ADAS systems and shape the ownership experience. Together, they form the backbone of the software-defined vehicle, a concept that is moving rapidly from premium global models into India’s mainstream market.

Few companies sit as close to this intersection as Tata Elxsi. As a key engineering and software partner to global and Indian OEMs, the firm is helping reshape vehicle architecture, compress development cycles and localise advanced technologies for emerging markets. In this conversation, Sundar Ganapathi, Chief Technology Officer for Automotive at Tata Elxsi, explains why connectivity and ADAS will drive the next wave of disruption, how India is adapting global technologies to its unique road and cost conditions, and why data will define competitive advantage in the decade ahead.

From rare-earth-free motors to battery-passport platforms and AI-driven systems, the shift is already underway. The question is no longer whether vehicles will become software-defined. It is how quickly India’s auto industry can adapt to a future where every car is a connected, continuously evolving device on wheels. Edited excerpts from the interview:

The convergence of connected, autonomous and electrified technologies is becoming critical in India. How is this shaping vehicle architecture and development cycles?

Initially, these trends evolved independently. Connected vehicles were one track. ADAS and autonomous features were seen as another. Electrification was primarily about emissions and propulsion alternatives. 

Now, however, the convergence is closely linked to the shift toward the software-defined vehicle. The customer experience is no longer about isolated features; it is about an end-to-end ownership experience. Connectivity is the backbone of this shift. A connected car allows OEMs to collect rich data, from battery health to vehicle performance, which can be used for predictive maintenance, diagnostics and even resale value estimation, especially for EVs where the battery is the most expensive component.

To estimate the remaining useful life of a battery or predict failures, you need data. And to get that data, you need connectivity. Without connectivity, many of these value-added services cannot exist. That is why electrification and connectivity are now tightly linked.

On the ADAS and autonomy side, the amount of AI and machine learning content in vehicles is increasing. Real-world scenarios are constantly evolving. Even advanced autonomous systems globally require periodic software updates as new scenarios emerge. The ability to collect data from vehicles in operation, analyse it and push over-the-air updates is critical.

Connectivity enables that feedback loop and strengthens autonomous capabilities over time. Whether you are talking about Level 2 or Level 4 autonomy, the principle remains the same: data collection and software updates are essential. Connectivity is becoming the backbone that ties all these domains together.

Among connectivity, autonomy and electrification, which will be the strongest drivers of change over the next decade?

All three are compelling, but connectivity and ADAS will be the strongest drivers
in the near term. Connectivity enables predictive maintenance, digital keys, AI-based assistants and several other value-added services. It underpins the entire software-defined vehicle concept. Remove connectivity, and many of these features fall away.

ADAS is also seeing rapid adoption. Features that were once limited to premium vehicles above ₹30 lakh are now moving into the ₹15-20 lakh segment. Models like the XUV700, Creta and Seltos have accelerated this shift. ADAS will continue to penetrate deeper into the market. Connectivity will grow alongside it.

Connected features are still largely concentrated in higher-end models. How quickly will they move into mass segments?

Ganapathi: That shift is already underway. You will start seeing connected features in the ₹10-15 lakh segment. Initially, it may be basic services, but it will expand over time. Today, customers in the ₹20 lakh SUV segment already expect connected features as standard.

Another key feature gaining traction is over-the-air (OTA) updates. With vehicles becoming more software-intensive, bugs are inevitable. The industry is moving toward a consumer-electronics model where software can be updated remotely. OTA updates help reduce service costs and improve customer experience.

With increasing data generation, how should OEMs balance monetisation with privacy and cybersecurity?

Globally, regulations are evolving, and India is likely to adopt frameworks similar
to GDPR (General Data Protection Regulation) in Europe. Strong guidelines on data management, consent and security will be necessary. The automotive sector is still catching up compared to industries like IT and banking, but discussions are underway and clearer regulations will emerge.

From a monetisation perspective, OEMs are still exploring viable models. There is a lot of data available, but converting that into revenue or customer value is a work in progress. Some use cases, like battery leasing or predictive diagnostics, are emerging. Over time, as AI capabilities improve and data volumes grow, new business models will develop. Data is the starting point. Monetisation will follow.

What are the key challenges in scaling connected vehicle adoption in India?

Two major challenges are hardware availability, such as chips and modems, and
connectivity reliability. On the hardware side, India is diversifying supply chains and building capabilities, so the outlook is improving. Connectivity quality, especially outside urban areas, still needs work, but progress has been significant. Highways now have fairly reliable 4G and 5G coverage. As networks expand further, connected features will reach more segments.

Currently, around 20-30% of new cars come with connected features. With the continued rollout of 5G and improved infrastructure, this share is expected to increase significantly in the coming years.

Given India’s complex traffic environment, what level of autonomy is most practical in the near to medium term? 

In the near to medium term, I see Level 2 and Level 2+ features gaining the most
traction in India. We are already witnessing growing adoption of these systems across segments. Over the medium to longer term, Level 3 features, such as hands-off and eyes-off driving under specific speed and road conditions, could begin to emerge. However, introducing L3 at scale will require additional effort to ensure safety and reliability for Indian conditions. Levels 4 and 5 will take longer to materialise, not just in India but globally, as the return on investment for these technologies has not matched earlier expectations.

From Tata Elxsi’s perspective, a key focus is on developing and validating ADAS and autonomy solutions specifically for Indian scenarios. Historically, algorithms were designed primarily for European or North American conditions and tested against those environments. But solutions developed for those markets may not perform at the same level in India without localisation. Today, global simulation and tool vendors have a strong presence in India and are developing India-specific scenarios. We are collaborating with these partners to simulate Indian driving conditions and test algorithms.

V2X is described as the backbone of future mobility. What realistic opportunities do you see for V2X adoption in India?

Among the various V2X applications, vehicle-to-infrastructure is likely to be the
most promising starting point in India. It can enable more effective traffic management under normal as well as adverse conditions, help respond to road accidents in a predictive manner, and provide real-time alerts from infrastructure to vehicles. However, scaling V2I will require substantial investment in connected infrastructure along highways and urban roads. The cost is significant and cannot be borne by any single stakeholder. It will need collaborative models, potentially public-private partnerships, to build and maintain the required ecosystem. 

Other V2X use cases will follow at a different pace. Vehicle-to-vehicle (V2V) communication could support collision warnings and safety alerts and is likely to be the next area of development. Vehicle-to-grid (V2G), on the other hand, may take longer to scale in India. With EV penetration still relatively low, the immediate priority remains expanding charging infrastructure rather than enabling cars to feed power back into the grid. 

Tata Elxsi is developing a rare-earth-free motor for EVs. When could we see it reach the market? Also, what is the timeline for commercial deployment of your battery-passport platforms and other EV solutions?

We have developed a proprietary rare-earth-free motor design for EV
applications that reduces dependence on imported rare-earth materials. The design is currently undergoing validation, and we are working with OEMs to co-develop and refine solutions around it.

We still need to complete further validation before it is production-ready, so it is difficult to commit to a precise timeline. However, the programme is at an advanced stage, and we expect it to move toward commercialisation in the near to medium term once validation is completed. The intent is to make the solution scalable across multiple platforms and segments, rather than limiting it to a single vehicle category.

We are also engaged in developing battery-lifecycle solutions such as battery-passport platforms, sometimes referred to as “battery Aadhaar” to track usage, health and lifecycle data. India has begun discussions around such frameworks, and we are working closely with industry bodies to help shape and implement them.

In parallel, we are collaborating with startups and global battery manufacturers to build advanced battery-management systems, covering both hardware and software. A recent collaboration with Infineon, for example, focuses on developing cost-efficient EV designs for India across two-wheelers, three-wheelers, passenger vehicles and commercial vehicles. We are combining global semiconductor expertise with local engineering and software capabilities to create scalable solutions for emerging markets.