Software is finding a growing presence in cars today, which will eventually get upgraded over time. In fact, over the years, car manufacturers have invested millions in the R&D of automotive software. And automotive OEMs are competing with tech giants to produce operating systems for the car. Ivo Ivanov, CEO, DE-CIX International, discusses why OEMs need to be in control of the data journey of their cars, why the type of usage of the car or the special mobility packages will become more essential down the line and if there really will be a software war in the near future.

The cars of the future will be highly interconnected, and we’ll see real-time data exchange. A couple of years ago, automotive OEMs were focused on the engine, shape, the mechanical part of the car etc. However, they have now understood that the digital part of this business will drive them more successfully into the next century. There is a huge appetite for control of data by the OEMs, not just of the software but the infrastructure as well.

In fact, automotive companies have already started turning into software companies. Ivo Ivanov, CEO, DE-CIX International, mentions that automotive OEMs plan to create an independency from operating systems like iOS or android, so as to have their own software-driven platform – and this is valid for all major automotive companies, from Honda to Toyota, which is a market reality. At the same time, we also see automotive OEMs partner with companies like Google or Amazon, because of their cloud capabilities. While this sure is the case, it doesn’t tell us that the automotive OEMs will stop creating their software independency.

“If you ask me about software, I truly believe that we will see the so called ‘software war’ in the near future,” Ivanov expresses and continues, “They will collaborate if it comes to cloud resources and cloud computing resources for their manufacturing platforms. However, if it comes to creating and increasing the control of the data gateway related to the digital car, then we will definitely see a future competition between the propitiatory software developments of companies like Volkswagen, BMW etc. (you name them) and the established operating system providers like Apple or Google.”

OEMs in control of the data journey – why is it needed?
While the automotive OEMs can easily go to the software companies, it comes down to who controls this. “If the software related to the car remains in the hands of the existing players, then the OEMs will have to share a bigger portion on the assets with those companies,” Ivanov enlightens and adds, “They can share if needed, but the question remains of who has the majority in that stake. They want to increase their margin on the digital assets related to the car and become the major stakeholder in that domain.”

Ivanov further informs that, moreover, those who want to be extremely successful in the future must make themselves capable of doing this. “Because if they do not create this controllability of the data journey, they will not be able to create digital assets,” he puts across and adds, “An OEM can grow its value as a company on the stock exchange if it is able to provide the market with a story that is futuristic and can create a value in the future. And the OEMs will not be able to differentiate in the future with the quality of the car seats, engines, shape of the car etc. alone – they will be able to differentiate with smart digital concepts for mobility solutions in our digital lives.”

Citing a relevant example in this context, he asserts, “Let’s think about the metaverse, or the truly and entirely digitalised environment; we see companies like McLaren and Porsche that have already started creating their digital twins for the metaverse. It eventually comes down to access to the customers. The OEMs have the cars and the customers are the users of the cars.”

OEMs developing their own software – is it safe?
However, even companies like Tesla have their share of failures in vehicle software, with there being investigations into Tesla’s driver enhancement software following a spell of documented malfunctions. So, what can one say when it comes to smaller OEMs?

“It’s a normal process of improving your code, its security and the software. It’s what Microsoft, Apple, Google etc. have been dealing with for decades now. In fact, the OEMs will catch up much faster because they have the money to make sure that they hire efficient people and acquire other companies. And also, again, they have access to the end-users,” explains Ivanov.

Control of the data journey and infrastructure
The OEMs have the cars, the customers and the users of the car. These OEMs want to control the framework and will integrate existing solutions and other elements but want to be in control of the data journey, which is the asset. “The assets are the tonnes of data produced by the car,” Ivanov shares and goes on, “Hundreds of thousands of organisations around the world are trying to get involved in this huge and tremendous business surrounding data – the data getting into the car and the data being produced in the car. This is what the OEMs aim for.” Ivanov further clarifies that the OEMs will probably not write the code for everything from zero, but they sure will want to control the framework. “But the knowledge of where exactly the data comes from in the car and where the data goes from out of the car, then they will be able to turn themselves into the gatekeepers of the data journey and create their virtual and digital assets around this driver behaviour. And I believe that it’s not the ownership of the car in terms of legal rights of owning the car, but the type of usage or the special mobility packages that will become more essential.”

Not just software, but chips too
According to market research firm Gartner, by 2025, fifty percent of the top 10 automotive OEMs will design their own chips. Ivanov envisions that what we have seen with the battery production for electric cars, will happen in the case of chips too. “All of the dominant OEMs, from Tesla to BMW to Mercedes to Volkswagen, have already started heavily investing in their own battery manufacturing assets. In some cases, they collaborate with existing battery manufacturers, or in other cases, they create their own battery factories,” Ivanov asserts and adds, “So we see a similar development in the chip industry. That’s because the chips in the connected car and the whole mobility concept around the future of OEMs are nothing but the new engine.”

A leading position
Software is certainly transforming the automotive world. And yes, major automotive OEMs are now seriously investing in new software platforms. The software and infrastructure together, undoubtedly, will empower automotive OEMs to be the gatekeepers in this data journey and provide them with the level of controllability of the data journey that they need to create virtual and digital assets for their shareholders. Software is definitely one of the main differentiators, creating a leading position in automotive OEMs.

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Tata Motors Passenger Vehicles, has reported its best-ever annual performance in FY2026 with wholesales of 641,587 units, up 15 percent YoY. This includes 631,387 units in the domestic market, up 14 percent, while exports came at 10,200 units, up 281 percent YoY.

For March 2026, the company’s sales came at 66,192 units, up 28 percent, while exports came at 779 units, up 204 percent YoY.

Interestingly, electric vehicles recorded its highest-ever quarterly sales of approximately 27,000 units, a 69 percent increase YoY. Annual EV volumes reached 92,120 units. On the other hand, sales of CNG vehicles crossed 170,000 units, up 24 percent YoY.

The Nexon and Punch models were the top-selling SUV models in the second half of the financial year. Recent launches, including the Sierra, a refreshed Punch and petrol variants of the Harrier and Safari, also saw continued customer traction.

The company expects the passenger vehicle industry to reach record annual volumes of approximately 4.7 million units, reflecting an 8 percent growth. Tata Motors emerged as the second-ranked player in the industry based on Vahan registrations during the second half of FY2026.

Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles, said, “PV industry sales are expected to reach record volumes of around 4.7 million units for the year, reflecting 8 percent year on year (YoY) growth. The industry witnessed a strong rebound in the second half, posting double digit growth, supported by GST 2.0 implementation and a robust festive season. For Tata Motors Passenger Vehicles, FY26 has been a landmark year marked by multiple milestones. We achieved our highest ever annual sales volumes of over 640,000 units, delivering industry beating growth of 15 percent YoY and ended it with strong positive momentum. Looking ahead, industry momentum is expected to sustain, led by growth in SUVs, CNG and EV. At the same time, the industry will need to closely monitor geopolitical developments to mitigate potential supply-side risks.”

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Honda Cars India (HCIL), a leading manufacturer of passenger vehicles, has recorded domestic sales of 7,585 units in March 2026, up 5 percent YoY, as compared to the 7,228 units sold last year. The company also reported exports of 2,451 units for the month.

The sales growth was supported by demand for the Amaze and Elevate models. Honda Cars India intends to expand its vehicle lineup in the upcoming financial year, with the launch of its first battery electric vehicle (BEV) scheduled for the second half of the year.

Kunal Behl, Vice-President, Marketing & Sales, Honda Cars India, said, “Demand for all Honda models specially Amaze and Elevate continues to be strong with exciting promotions and product offerings which helped us achieve 5 percent growth during Mar 2026. We are excited to enter the new fiscal with plans to expand our lineup, including the launch of our first BEV in the second half. We remain highly optimistic that our strong focus on customer satisfaction will continue to drive growth and sustain positive momentum.”

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Nissan Motor India (NMIPL), one of the leading passenger vehicle manufacturers, has recorded its best-ever monthly sale in March 2026, its highest in the last five years.

The company sold a total of 10,388 units in March 2026, which includes 4,408 units in the domestic market, while exports came at 5,980 units. This marks a 98 percent growth in domestic wholesales compared to February 2026.

The company attributed the smart uptick on the back of beginning of customer deliveries for the Nissan Gravite MPV, while the Nissan Magnite maintained its sales momentum. The expansion of its network presence also supported increasing customer traction.

The start of Gravite deliveries is identified as a milestone in the company’s growth phase in India. Nissan intends to sustain this trajectory by strengthening sales and service experiences and further expanding its network footprint across the country.

Saurabh Vatsa, Managing Director, Nissan Motor India, said, “March has been a defining month for Nissan in India, the strong growth in domestic sales reflects the positive customer response to our product portfolio. With the commencement of customer deliveries of the all-new Nissan GRAVITE, we would like to thank our customers for their love and appreciation for the Nissan Brand. The over-whelming response to the product reinforces our confidence in the opportunities ahead. Together with the continued momentum of the Nissan Magnite, the dedication of our Network Partners and support of Nissan Finance & other Banking partners, we remain focused on strengthening our Sales & Service experience, while further expanding our network footprint for sustaining long-term growth in the Indian market.”

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  - Bidyut Ghosh April 02, 2026 11:35 AM

  This is excellent move from Nissan India

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Toyota Kirloskar Motor (TKM) reports 20 percent uptick in its wholesales for FY2026 with 406,081 units sold, as compared to 337,148 units last year.

The company recorded growth across both domestic and export markets during the financial year. Domestic sales rose by 19 percent to 367,107 units, while exports grew by 41 percent to 38,974 units.

In March 2026, Toyota Kirloskar Motor reported a 24 percent increase in total sales, with 37,194 units sold compared to 30,043 units a year ago.

The company attributes a robust demand for its product portfolio, which was supported by the introduction of the Land Cruiser 300, as well as new grades and special editions for the Innova Hycross, Fortuner, Camry Hybrid and Hilux. Technical updates included a new six-speed automatic transmission for the Urban Cruiser Hyryder AWD variant.

The company also standardised six airbags across the Rumion, Glanza, Urban Cruiser Taisor, and Urban Cruiser Hyryder models. The Innova Hycross achieved a five-star Bharat NCAP rating during this period.

Toyota Kirloskar Motor expanded its market reach through customer-centric initiatives and brand engagement activities, including the Toyota Experiential Museum (TEM) and a tour by brand ambassadors Drum Tao. These efforts were intended to increase reach among younger audiences and reinforce the brand's mobility positioning.

Sabari Manohar, Executive Vice-President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, said, “We delivered a positive performance this financial year, driven by sustained demand across our SUV, MPV and compact segments. The introduction of new products and customer centric initiatives during the year further helped position Toyota as a dynamic, technology driven and youth‑oriented brand. This momentum reflects the continued trust in Toyota’s quality, reliability and overall ownership experience. In a rapidly evolving market, such consistency underscores the strength of our fundamentals and positions us well for long‑term sustainable growth. We sincerely thank our customers, dealer partner, Government and other stakeholders for their trust & unwavering support. We remain focused on strengthening our product and technology offerings in line with our multi‑pathway approach of hybrid & electrified vehicle technologies in the mobility space. Looking ahead, we remain committed to creating long‑term value while continuously improving every touchpoint across the customer ownership journey.”

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