Indian developers lead on software-defined vehicles despite hurdles
A new study has found that automotive software developers in India are playing a significant role in advancing software-defined vehicle (SDV) technology, despite facing substantial development challenges and regulatory pressures.
The study, commissioned by QNX and surveying 1,100 automotive software developers across North America, Europe, and Asia, with 100 participants from India, highlights how Indian teams are contending with long development cycles, complex integration demands, and a fast-changing regulatory environment.
Regulatory complexity
The findings reveal that Indian developers are dealing with intensified compliance demands as automotive regulations increase globally. More than one quarter (26%) of Indian respondents reported experiencing project delays directly related to new compliance requirements. In 2024 alone, over 500 new regulations and legislative proposals impacting in-car technology were introduced worldwide.
Indian developers cited top compliance challenges including software update and over-the-air (OTA) mandates (54%), cybersecurity regulations (52%), data privacy laws (44%), and functional safety standards such as ISO 26262 (38%).
Regulatory challenges have led to a shift in development priorities, with 72% of Indian respondents-the highest figure globally-stating that recent software recalls have significantly altered their approach. Nearly 40% described these changes as "major". Despite these pressures, 99% of Indian developers reported confidence in their teams' ability to maintain compliance, again the highest rate among regions surveyed.
Global regulatory frameworks are evolving, but not fast enough to match the pace of innovation. OEMs should build resilience into development, realign internal organizations for software lifecycles, and - where appropriate - consider targeted collaborations to navigate compliance while maintaining speed and agility.
That was the assessment of Manuel Tagliavini, Software Principal Analyst, Automotive Supply Chain & Technology at S&P Global Mobility.
Development bottlenecks
Development bottlenecks remain a key concern. Indian developers reported the longest development cycles (49%), alongside issues of integration complexity (47%) and regulatory compliance (45%). Just 31% classified their current development environment as "excellent" for productivity.
This environment has made it more difficult to meet rising consumer demands, according to respondents. Indian developers attributed delays to regulatory requirements (60%), hardware limitations (55%), and a shortage of skilled staff (51%).
Shifting focus for OEMs
Looking forward, there is broad support among Indian developers for a strategic shift by automakers. 85% believe automotive manufacturers should move their focus from foundational software infrastructure to application-layer innovation, which is viewed as essential for faster go-to-market strategies and improved consumer experience. The vast majority (98%) said that cross-industry partnerships are important to their projects, with 72% supporting collaborative development practices.
Software is the cornerstone of the entire SDV stack, from chip to cloud. For OEMs and the automotive sector to accelerate time-to-market and achieve scale, it is essential that foundational software be developed with a trusted and capable partner. Pursuing a vertical approach to foundational software may impede transformation due to inherent complexities, regulatory requirements, and skills shortages, and this is consistent across geographies and even in India. Establishing co-innovation partnerships will foster agility and deliver the standardized safety and security frameworks required to advance into the SDV era.
Neil Shah, Vice President, Research & Co-Founder, Counterpoint Research, provided this perspective on the need for collaborative approaches in foundational software development.
AI and future development
The potential impact of artificial intelligence (AI) on automotive software is also significant according to the research. 93% of Indian developers expect AI to play a "transformational or significant" role in their work within the next three to five years. They predicted that by 2035, AI tools could replace up to 43% of their current roles.
The majority (59%) of Indian developers surveyed named AI-driven personalisation as the most important feature expected in software-defined vehicles by 2030, the highest level of interest observed among regions in the study.
QNX's trusted foundational software supports future-proof engineering design, from digital cockpits and advanced driver assistance systems (ADAS) to infotainment systems and domain controllers, enabling automakers to bring innovation to market faster and at lower cost. While AI offers promise, the OEMs making real progress towards a SDV driven future are those rethinking how and where their engineering teams are focused - building the right partnerships and shifting energy toward innovation that directly impacts the in-car experience for drivers and passengers alike.
This statement was made by Raj Jain, Vice President Engineering and Head of QNX India, regarding the direction of automotive software development and the increasing significance of AI.
The QNX survey was conducted online and included developers working on embedded automotive software. Compensation and compliance with market research codes were ensured in the administration of the survey.
QNX's research and the perspectives of surveyed developers indicate that the Indian automotive software sector is dealing with widespread regulatory and operational pressures, but is responding by adopting new approaches and strategic collaborations intended to drive the future of software-defined vehicles.
