OEMs Or Software Companies: Who Will Control The Data?
- By Juili Eklahare
- September 14, 2022
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.
Tata Motors To Gift Sierra SUVs To Women's World Cup Winning Team
- By MT Bureau
- November 05, 2025
Tata Motors Passenger Vehicles has announced it will present the Indian Women’s Cricket Team with the first lot of the soon-to-be-launched Tata Sierra SUV following their victory at the ICC Women's World Cup. The Tata Sierra is slated to be launched on 25th November.
The company will gift the top-end model of the Sierra to each team member as part of its salute to the team’s journey and contribution to the country.
Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles, said, “The Indian Women’s Cricket Team has made the entire nation proud with their extraordinary performance and remarkable win. Their journey stands as a true testament to determination and the power of belief, qualities that inspire every Indian. At Tata Motors Passenger Vehicles, we are privileged to present these legends with another legend, The Tata Sierra. This is our salute to their spirit and the pride they have brought to the nation – Two legends, One spirit, Infinite inspiration.”
Maruti Suzuki India Crosses 30 Million Unit Sales Milestone
- By MT Bureau
- November 05, 2025
Maruti Suzuki India, the country’s leading passenger vehicle manufacturer, has attained a new milestone by crossing the 30-million-unit sales milestone in the domestic market.
The new benchmark was attained by the company over a course of 42 years, with the first 10 million unit sales taking 28 years and 2 months to achieve.
The 20 million unit sales took 7 years and 5 months, while the recent milestone took just 6 years and 4 months.
Interestingly, the entry-level hatchback Alto was the most preferred model in the country, with over 4.7 million units sold, followed by Wagon R with 3.4 million units and the sporty Swift with 3.2 million units.
The Brezza and Fronx SUVs also played an instrumental role in contributing to the sales milestone, being featured among the top 10 models sold in the country.
It was on 14th December 1983, Maruti Suzuki India delivered its first model, the iconic Maruti 800, to its first customer.
Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “When I look at the length and breadth of India and think that 3 crore customers have placed their trust in Maruti Suzuki to realise their dream of mobility, it fills me with humility and gratitude. Yet, with car penetration at approximately 33 vehicles per 1,000 people, we know our journey is far from over. We will continue to make every possible effort to bring the joy of mobility to as many people as we can, while also be an asset to both the economy and the environment at the same time.”
Sharad Agarwal Is Tesla India’s First Business Head
- By MT Bureau
- November 04, 2025
American electric vehicle maker Tesla has appointed Sharad Agarwal, former Chief Business Officer of Classic Legends, as its new business head, according to a report by Bloomberg.
The report further stated that Agarwal joined the EV maker a week ago and is tasked to drive sales for Tesla in India, which as per industry observers, has not performed as per the company’s expectations.
Agarwal, an automotive industry veteran, had begun his career with TVS Motor Co as Area Sales Manager in December 2002, before joining Mahindra First Choice Wheels as its Business Head for North and Eastern region in March 2007.
It was in January 2013, he moved to Audi India as the head of Sales, before taking over as the head of Lamborghini India in April 2016, where he spent almost 9 years, before joining Classic Legends.
During his tenure at Lamborghini, the Italian super luxury car maker saw its dealerships across India achieved a Return on Sales (RoS) of more than 10 percent, setting a new benchmark for the automotive business in the country. He also grew India’s ranking for the automaker as the third market globally in terms of PR visibility in 2021.
He also expanded Lamborghini India’s reach to over 60 cities, with sales volumes from Tier 2 and Tier 3 cities contributing more than 25 percent of the total.
Tesla, which formally started deliveries in September 2025 with its first dealership in Mumbai and the second facility in Delhi, has till date delivered 114 vehicles, of the estimated 600-plus bookings.
File photo for representational purposes only.
Mahindra & Mahindra Reports INR 36 Billion Net Profit For Q2 FY2026
- By MT Bureau
- November 04, 2025
Mumbai-headquartered business conglomerate Mahindra & Mahindra has announced its financial results for Q2 FY2026 with consolidated Revenue reaching INR 461 billion, marking a 22 percent YoY growth.
The consolidated Profit After Tax (PAT) stood at INR 36 billion, a 16 percent increase YoY. The company stated that, excluding specific one-time impacts, PAT growth was 28 percent YoY.
Mahindra’s Auto business reported sales of 262,000 vehicles, up 13 percent, which includes around 146,000 SUV sales. This translated to a revenue of INR 271 billion, up 25 percent YoY, while net profit came at INR 15 billion, up 8 percent YoY.
On the other hand, the farm sector reported its highest ever Q2 market share at 43 percent with sales of 123,000 units, up 32 percent YoY. The revenue came at INR 102 billion, up 25 percent, while consolidated net profit came at INR 11 billion, up 45 percent YoY.
Dr. Anish Shah, Group CEO & Managing Director, Mahindra & Mahindra, said, “We are pleased with the strong execution and solid performance delivered across the group in Q2 FY2026. Auto and Farm sustained their leadership with consistent gains in market share and profitability. TechM is progressing well on its transformation journey. MMFSL achieved a 45 percent PAT growth and remains committed to quality growth and digital transformation. Our Growth Gems are steadily advancing towards their ambitious goals, reinforcing our long-term value creation potential.”
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), Mahindra & Mahindra, said, “Strong performance of our Auto and Farm businesses continues in Q2 FY2026 reinforcing our leadership position, with a gain of 390 bps YoY in SUV revenue share, and 100 bps YoY in LCV (< 3.5T) market share. In Tractors, we gained 50 bps YoY to reach 43 percent market share. Our Auto Standalone PBIT margin (excl. e-SUV Contract Mfg.) improved by 80 bps to 10.3 percent and core Tractor PBIT margins improved by 190 bps to 20.6 percent.”
Amarjyoti Barua, Group Chief Financial Officer, Mahindra & Mahindra, “Our solid Q2 consolidated results reflects the strength of our diversified portfolio. We continue to deliver on our strategic priorities. We had strong cash generation in the first half, delivering over INR 100 billion of operating cash flow. We remain committed to sustainable growth and value creation.”

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