Indian software companies have become important developers of software systems for the world's auto majors.
In 2000, on an average, software constituted about 2 per cent of the overall cost of a car. By 2010, it's estimated that it will rise to 30 per cent. Over the next two years, it is estimated that the market for such software will rise to 35 billion euros.
Anup Sable, vice-president (automotive and allied embedded and tools), KPIT Cummins, said: "In the near future car manufacturers will differentiate their product offerings by software applications inside the vehicle which will be a key factor driving sales. Despite the slowdown in the auto industry the market for software development will be robust."
The software company derives about 25 per cent of its revenues from the automotive space and has posted an annual growth of 50 per cent over the last two years.
To differentiate their models car majors and software companies have teamed up to offer new models sporting the latest software application. Microsoft and South Korean carmaker Hyundai have signed an agreement to build music and information systems in cars that will be sold in 2010.
Apple has signed an agreement with Ford, General Motors, and Mazda that will enable the trio offer easy iPod connections in the majority of the models they will roll out soon.
The need for more software in cars is felt to improve safety and enhance the ease of driving. For instance, all BMW models have easy parking facility that helps a driver navigate by looking at a monitor placed in the front that receives images beamed by cameras placed behind.
Software developed by KPIT Cummins helps control the flow of oil to the steering wheel system that makes for easy navigation of the vehicle with less manual effort.
Software developed by Robert Bosch based in Bangalore helps children avoid placing their fingers while the car windows are rolling down.
"Legislation will drive how much software goes into cars. Especially in matters pertaining to safety and emission norms," says Vijay Ratnaprkhe, senior vice-president, Robert Bosch Engineering and Business Solutions, which derives about 90 percent of its revenues from the automotive vertical.
Future software applications developed by Indian software majors could prevent road accidents which snuff out about 700,000 lives annually worldwide.
Tata Elxsi that derives about 20 per cent of its revenues from the automotive space designs software that alerts drivers when they accidentally skip traffic lanes or fall asleep at the wheel. Tata Elxsi has witnessed 50 per cent growth over the last few years and expects the trend to continue in the future.
While airbags are designed to protect lives during collisions, their malfunction could prove to be fatal.
Honda's new Accord incorporates an intelligent six air bag system controlled by a software that decides on activation, in mili-seconds, how much an airbag has to inflate to cushion driver and passengers during a high impact collision that could be frontal or from the sides of the vehicle.
Top-end Reva electric cars are kitted with two computers that regulate the use and production of electric energy in the car.
