L&T's engineering services arm boosts investment in self-driving, EV tech in India for global manufacturers | Mint
Active Stocks
Wed Feb 28 2024 10:59:01
  1. Tata Motors share price
  2. 965.70 0.31%
  1. Tata Steel share price
  2. 142.70 -1.01%
  1. Power Grid Corporation Of India share price
  2. 287.45 -1.73%
  1. ITC share price
  2. 409.30 -0.45%
  1. HDFC Bank share price
  2. 1,414.10 -0.45%
Business News/ News / L&T's engineering services arm boosts investment in self-driving, EV tech in India for global manufacturers

L&T's engineering services arm boosts investment in self-driving, EV tech in India for global manufacturers

Larsen & Toubro Ltd.’s engineering services arm is ramping up investments in self-driving and electric vehicle technologies, betting on India’s appeal as a source of expertise for global manufacturers looking to expand in the field.

For representation purposesPremium
For representation purposes

Larsen & Toubro Ltd.'s engineering services division is increasing its investment in self-driving and electric vehicle technologies, with a focus on leveraging India's expertise as a hub for global manufacturers seeking to expand in this area.

L&T Technology Services Ltd., a company that provides services to clients such as BMW AG and Airbus SE, is aiming for accelerated growth after achieving sales of $1 billion in the fiscal year ending in March, according to CEO Amit Chadha. The firm, which is affiliated with India's largest construction conglomerate, plans to generate revenue of $1.5 billion in the next two years. 

To achieve this goal, the company has established design and engineering facilities for autonomous and electric vehicle technologies in Bengaluru, Munich, and Peoria, Illinois over the past three years, positioning itself closer to vehicle manufacturers. Unlike customers in the tech, telecom and construction industries who are grappling with a sluggish economy and higher inflation rates, manufacturers of next-generation vehicles are benefiting from the shift towards more environmentally-friendly options.

“We are scaling up. A significant part of our growth is now coming from electric autonomous vehicles — not just cars, but buses, track and hybrid aircrafts as well," Chadha said.

The firm has increased its recruitment of skilled engineers who can assist clients in designing better battery management systems and electric vehicle chargers. Additionally, it creates AI systems that enable self-driving vehicles to autonomously learn how to identify objects on the road.

For years, multinational corporations have depended on India's talent for basic technology outsourcing, and the nation is now establishing itself as a force in more sophisticated endeavors. India is currently a frontrunner in the outsourcing of engineering research and development, with its $40 billion market constituting one-third of the global total, as per a report from KPMG.

However, Apurva Prasad, Vice President at HDFC Securities, believes that India will not be immune to global challenges. "If global spending on research and development decreases, the demand for engineering services is expected to decline," he explained.

In addition to its focus on the transportation sector, L&T Technology Services is also investing in fields such as medical technology, 5G, and sustainability, according to Chadha. "The biggest concern that keeps me up at night is the risk of becoming obsolete in the technology world," he stated. "As long as we remain relevant, growth will continue to be evident."

(With inputs from Bloomberg)


Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 11 May 2023, 09:59 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App