During its Q2 FY27 earnings call, Nitin Pai, Tata Elxsi’s chief marketing officer, said the firm had been losing significant revenue from Tier‑1 suppliers.
The decline, which has stretched over 5‑6 quarters, pushed the company to forge deeper ties with automakers directly, sidestepping the traditional component‑vendor layer.
Makers are increasingly pulling software development in‑house to keep control over digital architectures—especially for software‑defined vehicle (SDV) platforms and cloud‑based telematics.
For the average buyer, the trend translates to more frequent over‑the‑air updates, reduced reliance on third‑party vendors, and potentially lower long‑term maintenance costs.
In North America and India, non‑group automakers are the main drivers of this shift, Manoj Raghavan noted, citing stronger momentum in those markets.
The long‑term implication is tighter hardware‑software integration that could reshape pricing structures and feature sets—buyers should watch how OEMs price future updates.