Qualcomm And Nvidia See Gain In Automotive Business

Qualcomm And Nvidia See Gain In Automotive Business

Introducing significant advancement in automotive semiconductor technology at the recent Snapdragon Summit 2024 with a focus on improving the cockpit and ADAS experience, Qualcomm has reported strong growth in its automotive revenue in the current calendar year. 
The growth story at Nvidia – with a lucrative detour into AI – is indicative of the developments in autonomous vehicle technologies.  
The tech major may not enjoy the popularity or acceptance that Qualcomm has come to command, the fact is, both are seeking an innovative approach to automobiles as their users seek new and exciting features. 
While legacy automotive tier 1 suppliers like Schaeffler, Bosch and others facing the challenge of sluggish demand, the system-to-chip (SoC) technology companies like Qualcomm and Nvidia are engineering a different dimension to the art of automobile design, development and manufacture.  
Enjoying an EBITDA margin of around 30 percent as compared to the five percent EBITDA margin roughly of tier 1 automotive suppliers, Qualcomm and Nvidia are driving the age of software defined vehicles that are already calling for engineers with a deeper understanding of software. 
C++ or Autosar may be the language most automotive software programmes use as the basis, from a features or convenience point of view, even the presence of rain sensing wipers or an air-con that can be switched on or off with a voice command are fast gaining prominence among automotive buyers as they seek a different level of emotion connection with their set of wheels. 
From a vehicle architecture point of view, please consider the Qualcomm’s Snapdragon Digital Chassis. It has evolved with the introduction of the Snapdragon Cockpit Elite and Snapdragon Ride Elite platforms on the hardware side. 
Aiding faster computing speeds, both the platforms feature the Oryon CPU. This CPU has been optimised for automotive safety standards and designed for 3x faster CPU performance than previous generations, according to Qualcomm sources.  
Aiding to enhance in-vehicle digital experiences by integrating advanced infotainment with autonomous driving capabilities on a single chip, developments like this mark an interesting milestone in the world of automobiles. 
An important milestone will be the plan by Qualcomm to introduce lower-tier versions of these platforms to broaden their applications, enabling automakers to develop cost-effective solutions across various market segments. 
The Cockpit Elite and Ride Elite SoCs are expected to be available to manufacturers starting in 2025, with early adopters such as Mercedes-Benz and Li Auto planning to integrate these technologies into their upcoming models. 
The first vehicles using these platforms are expected to be available by 2026 in China. Releases in other markets in the world will soon follow. 
Talking about Nvidia's lucrative detour into AI, Ola Electric has developed an Ola Digital Twin platform on NVIDIA Omniverse that is helping it to achieve 20 percent faster time-to-market – from design to commissioning for its manufacturing operations.
Built on NVIDIA Isaac Sim, the Ola Digital Twin platform taps into core Omniverse technologies like OpenUSD for data interoperability, RTX for physically-based rendering, and generative AI for accelerated world building to generate synthetic data or training autonomous mobile robots and robotic arms.
Consulting leaders such as Tata Consultancy Services (TCS) and Tech Mahindra are developing industrial AI applications and services on Omniverse to help manufacturers develop digital twins for accelerated factory planning, optimised processes, robotics training and large-scale automation, according to an industry source aware of the new developments in AI and industrial automation.

Edge AI and software virtualisation
At Snapdragon Summit 2024, Qualcomm emphasised the benefits of edge AI over traditional cloud-based solutions, particularly in terms of privacy and latency. 
By processing data locally within the vehicle, edge AI enhances data security and ensures that sensitive information remains protected. Recent advancements in AI models, such as Llama 3.0, illustrate that edge AI can deliver strong performance while reducing memory requirements, which may lead to cost savings for manufacturers.
Interesting, use cases covering nearly every aspect of heavy manufacturing — from building virtual factories for real-time factory planning and monitoring, to creating digital twins of aircraft components for immersive training and predictive maintenance, Nvidia’s Omniverse is being used to simulate autonomous vehicles; to enable automotive companies to simulate and validate complex driving scenarios without the need for physical testing. 

Image for representative purpose only

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    Tata Motors And Tata Power Renewable Energy To Co-Develop 131 MW Renewable Energy

    Tata Motors - Tata Power

    Tata Motors, one of India’s leading automobile manufacturers, has joined forces with Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power, for a Power Purchase Agreement (PPA) to co-develop a 131 MW wind-solar hybrid renewable energy project.

    The initiative is expected to generate around 300 million units of clean electricity annually and offset over 2 lakh tons of CO2 emissions each year. The strategic move is set to provide a reliable supply of green, cost-effective energy exclusively to Tata Motors’ six manufacturing facilities in Maharashtra and Gujarat, supporting production of both commercial vehicles and passenger vehicles.  

    The move is part of Tata Motors’ clean energy transition for achieving its RE-100 commitment ahead of the 2030 target.

    Vishal Badshah, Vice President – Operations, Commercial Vehicles, Tata Motors, said, "As a key driver of India’s mobility and logistics ecosystem, Tata Motors Commercial Vehicles is proud to lead by example in sustainable manufacturing. This project reinforces our commitment to integrate renewable energy into our operations and reducing our carbon footprint while meeting our RE-100 goals. It also reflects our broader purpose of delivering mobility solutions that are sustainable at every stage –from production to performance."

    Pramod Choudhary, Vice President – Operations, Tata Motors Passenger Vehicles, added, “We are committed to transition to clean energy for building a future ready automotive business. With this PPA our plants in Maharashtra and Gujarat will take a significant leap in our journey towards Green Manufacturing, complementing India’s green transition. It’s a defining step towards making our Passenger Vehicle Operations greener, smarter and more resilient on sustainable basis.”

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      Merecedes-Benz India Rolls Out 200,000th Made-in-India Car From Chakan Facility

      Mercedes-Benz

      German luxury car brand Mercedes-Benz India has attained a new production milestone of rolling out its 200,000th made-in-India car the EQS SUV, from its Chakan facility in Pune, Maharashtra.

      The event was attended by Dr Joerg Burzer, Member of the Board of Management of Mercedes-Benz Group AG responsible for Production, Quality & Supply Chain Management, rolled out the 200,000th Mercedes-Benz in India in the presence of Santosh Iyer, Managing Director & CEO, Mercedes-Benz India and Vyankatesh Kulkarni, Executive Director & Head of Operations, Mercedes-Benz India.

      It is important to note that Mercedes-Benz India was among the first luxury car brands to set-up production and assembly in India way back in 1994. The company clocked 50,000 units production milestone in 2014 taking a total of 19 years; the next 150,000 units came in a decade (2015-2025).

      Interestingly, in the last two years, Mercedes-Benz India produced 50,000 cars, which the OEM stated demonstrates the rapid evolution of India's luxury car market and the increasing aspiration for the Mercedes-Benz brand among Indian customers.

      The Chakan facility also boasts several notable distinctions, including being the first market to produce a Mercedes-Maybach (S500) outside Germany in 2015, production of the EQS 580 Sedan in 2022, localisation of a second BEV – EQS 580 SUV. Since 2022, the Chakan facility uses 100 percent green energy for production.

      What’s more, Mercedes-Benz has invested over INR 30 billion in India till date with INR 2 billion in 2024 alone.

      Dr Joerg Burzer, said, “Mercedes-Benz’s remarkable milestone of 200,000 'Made in India' Mercedes-Benz cars, underlines India’s potential as a key manufacturing hub in the long run. The Indian plant has achieved high level of production agility, manufacturing world-class ICE and EVs under one-roof, underscoring the technical prowess of the team and high level of flexible manufacturing, capable of responding fast to market and customer requirements. The Indian production hub's contribution to our global sustainable manufacturing strategy, through 100 percent renewable energy use, exemplifies our commitment to sustainable manufacturing.”

      Santosh Iyer, added, "Mercedes-Benz production facility is the backbone of our Indian operations and has played a critical role in our market success, manufacturing world-class ICE and BEV products for the discerning Indian customers. Mercedes-Benz continues to set new standards in production quality, remaining invested in the market with highest investment by any luxury OEM in India. We will stay invested in our state-of-art manufacturing facility, catering to growing market demand for Mercedes-Benz products in the Indian market."

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        Valeo’s New Pune Facility To Focus On Manufacturing 3-in-1 Combo Unit For EVs

        Valeo Pune

        French tier 1 supplier Valeo is upping its bet on India’s electrification story and has inaugurated its newest facility in Pune, which will focus on the production of the highly integrated 3-in-1 Combo unit (On Board Charger, DC-DC Converter and Power Distribution Unit) for electric vehicles.

        The 3-in-1 Combo combines three essential components:

        • On-Board Charger, which converts AC power from the grid to charge the high-voltage battery (ranging from 7kW to 22kW).
        • DC-DC Converter, which converts high-voltage power to 12V for auxiliary systems and low-voltage battery charging.
        • Power Distribution Unit that efficiently distributes power to critical electric vehicle components, including traction and auxiliary loads.

        This modular design enhances efficiency by optimizing component sharing between the battery, OBC, and DC-DC units, reducing space, weight and costs while improving overall performance.

        The new facility was inaugurated by Xavier Dupont, Valeo Power Division CEO and Group Executive Vice President and Jayakumar G, Group President & Managing Director, Valeo India.

        Xavier Dupont, said, “At Valeo, we are committed to supporting xEV growth in India. We offer our clients the latest technologies for safer and more sustainable mobility and by investing in new production capabilities, we are proud to contribute to Make in India. My congratulations and best wishes to the Valeo Power teams for their dedication to drive electrified mobility forward.”

        Jayakumar G, stated, "This achievement reflects the strong collaboration between Valeo’s global and India teams in establishing these advanced manufacturing lines. I am pleased that our teams are trained in these new technologies and prepared for the production ramp-up. We sincerely thank our customers for their steadfast support. As India accelerates its xEV transformation, Valeo remains committed to delivering innovative solutions for a sustainable future."

        The tier 1 stated that by localising key power electronic components, it will reduce import dependency, optimise supply chain and deliver cost-competitive solutions for OEMs for their EV programmes in India.

        The tier 1 supplier has been present in India since 1997 and operates 8 production sites and R&D Centre, employing over 7,000 people across its facilities.

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          Exports Counter Domestic Slowdown For Bajaj Auto In FY2025

          Bajaj Auto

          Pune-headquartered two-wheeler and three-wheeler major Bajaj Auto has announced its wholesales for March 2025 and FY2025.

          For March, the company witnessed flat growth, selling a total of 369,823 vehicles, which was 1 percent higher YoY, compared to 365,904 units for the same period last year.

          In contrast to two-wheeler sales, which were flat at 315,732 units (0.59 percent), the three-wheeler sales grew by 3.98 percent, primarily driven by an 11 percent increase in exports.

          On the other hand, for FY2025, the company reported a robust growth of 6.9 percent, selling a total of 4.65 million vehicles, as compared to 4.35 million units last year.

          The two-wheeler sales came to 3.98 million, up 6.82 percent YoY. This includes 2.30 million two-wheelers sold in the domestic market, up 2.5 percent YoY and 1.47 million units exported, up 13.3 percent YoY.

          The three-wheeler sales came to 668,657 units, which was 7.3 percent higher as compared to 623,010 units sold last year. The domestic sales grew by 3.3 percent YoY, while exports grew at 19 percent YoY, respectively.

          BAJAJ AUTO
            Mar-25 Mar-24 Change (in %) FY '25 FY '24 Change (in %)
          Two-wheelers
          Domestic 183,659 183,004 0.36% 2,308,249 2,250,585 2.56%
          Exports 132,073 130,881 0.91% 1,674,060 1,477,338 13.32%
          Total 315,732 313,885 0.59% 3,982,309 3,727,923 6.82%
          Commercial Vehicles
          Domestic 37,815 37,389 1.14% 479,436 464,138 3.30%
          Exports 16,276 14,630 11.25% 189,221 158,872 19.10%
          Total 54,091 52,019 3.98% 668,657 623,010 7.33%
          (Two-wheeler + CVs)
          Domestic 221,474 220,393 0.49% 2,787,685 2,714,723 2.69%
          Exports 148,349 145,511 1.95% 1,863,281 1,636,210 13.88%
          Grand Total 369,823 365,904 1.07% 4,650,966 4,350,933 6.90%

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