Amit Chadha, CEO & managing director, L&T Technology Services (LTTS). Credit: LTTS

As global demand for the next generation of automotive heats up, Indian engineering and R&D giant L&T Technology Services (LTTS) expects the electrification, autonomous, and connected vehicles (EACV) segment to present a sea of new opportunities. Along with five other strategic technology areas, clubbed together as 'Six Big Bets,' EACV will serve as the growth engine of its long-term business model.

Speaking to Digitimes Asia recently, Amit Chadha, CEO & MD of LTTS, explained that the other five areas driving long-term growth would be 5G, digital products and AI, digital manufacturing services, MedTech, and sustainability.

"In this direction, we have invested in an EV Lab based at our Bangalore campus," Chadha said. "Additionally, we have developed technologies and infrastructure, including the EV reference platform e-VOLTTS, Digital Cockpit (DCS), as well as a High-Voltage EV Drivetrain Platform. The in-house-developed e-VOLTTS is a scalable and modular high-efficiency reference platform that can be easily customized for use in a wide range of vehicle segments such as off-highway vehicles, passenger cars, two- and three-wheelers."

Chadha explained that the company believes now is the ideal time to invest in and dedicate our resources to the EACV segment. They understand the technological disruptions this segment is undergoing, and the capability expansion that LTTS is undertaking in tandem will bolster the positive impact. This has helped in developing various long-term partnerships and ushering in transformational changes.

"Earlier in 2022, we bagged a strategic customer win valued at $45 million with a US-based automotive Tier I company," Chadha said. "We will be the technology partner for this organization and provide engineering services for their Electric Vehicle (EV) product portfolio. More recently, we signed an electric air mobility deal with Jaunt Air Mobility to provide engineering services for the Jaunt Journey eVTOL (electric Vertical Takeoff and Landing) air taxi, in a mega engineering service deal worth $100 million."

LTTS' partnership plan includes collaboration with leading organizations in the EV sector. These companies are at the forefront of the electric disruption to drive digital change.

Digital Cockpit from L&T Technology Services. Credit: LTTS

The impact of chipset shortage

The chip shortage is a two-pronged issue, with implications for both the manufacturing and designing processes. The pandemic impacted the manufacturing end. While LTTS doesn't have much exposure to the chip manufacturing ecosystem, it is one of the leading companies engaged in semiconductor design engineering-related projects for a global clientele.

"We have witnessed a growing demand for design and engineering services over the last two years, with a focus on Silicon Carbide (SiC) based EV platforms," Chadha said. "Although we are not a manufacturing organization, we are one of the leading companies that offer design and engineering-related projects for our global clientele. Our semiconductor design services are certainly gaining traction, garnering interest and demand from clients around the world. With tech companies expanding into the chip design space, traditional semiconductor manufacturers are getting a run for their money."

Overseas expansion plans starting with Poland

In May this year, LTTS inaugurated its Engineering, Research and Development (ER&D) center in Krakow, Poland, which will cater to global customers. Chadha explained that with this, the company has its sights set on expansion in the European region while also catering to major OEMs and tier 1 automotive clients in North America. LTTS' Poland operations will be a launch pad for creating and expanding client base in North America, Western Europe, and Asia.

"North America is, of course, the leading market for EVs, and as I mentioned, we have won a couple of large R&D deal wins pertaining to the EV segment in this important geography," Chadha continued. "There are a few large connected and electric deals that we are pursuing in Europe, too, at this stage. Over the next few years, we plan to grow our resources to strengthen growth in these regions."

LTTS' investments in the EACV segment have led to solid and strategic partnerships, which have in turn led to a positive impact on its financial growth. Q1FY23 marks its second consecutive quarter of large deal wins in aero and rail – with a $50M deal in the rail space – on the back of the $100M+ deal in the urban mobility space from Jaunt Air Mobility.

"We have observed strong demand in EACV space, especially for design of high-power motors and inverters, test lab development, digital cockpit and analytics," Chadha said. "We can confidently say that our focus and investments on EV are successfully generating growth and traction, resulting in notable large deal wins."

Often all the buzz around EVs tends to focus on the automobile brands alone. But technology service providers like LTTS have a crucial role to play in the increased adoption of electric vehicles. As demand for EVs and smarter cars continues, we can expect more innovation in this segment.