As per recent reports, Wipro – the Indian IT giant has partnered with Germany-based Aachen, an FEV firm. This partnership aims to develop software-driven vehicles.
In their recent regulatory filing to the stock exchanges, Wipro stated that they have jointly set up an innovation lab. It will develop different scalable software, electronic/electrical architecture for vehicles, improve system features, and study real-world use cases.
Thomas Muller, the CTO – Engineering and R&D Services, Wipro – declared that, with this new partnership, their focus is on research, product development and curating advanced solutions. In addition, they will also look into different roadmaps for supporting go-to-market solutions for global customers.
He further stated this venture would also bring together two companies’ technical expertise and individual skills. As a result, it will benefit the automotive industry to meet its commercialization goals, besides research.
Overview of the global automotive software market
The global automotive software market was valued at $18.5 billion in 2019 and is expected to reach $43.5 billion by 2027 at a CAGR of 14.5% between 2020 and 2027.
Automotive software used by vehicle manufactures targets to complete in-car applications through an onboard computer for enhancing the driving experience. It includes a suite of various operations including, advanced driver assistance systems (ADAS), communication and infotainment systems, telematics, safety measurements, etc.
Since the hurdles of developing adequate software are challenging for carmakers, technological start-ups and giants have provided these solutions. To give an example, General Motors acquired Cruise Automation in 2016 for $1 billion. Collaborations and acquisitions of this sort will provide technological support to carmakers.
Wipro’s recent partnership is a significant step in this steeply growing market of vehicle automation.
In other Wipro news 2021
Wipro recently entered a $143-million deal with the US-based apparel maker Levi’s Strauss. With this deal, Levi’s aims to outsource business activities like IT, human resources, finance, customer relation and services, globally.
In this five-year deal, Levis will pay Wipro via a series of variable and fixed charges. The variables will depend on the company’s need for these services. All in all, Wipro is set to receive $143 million by the end of this project as per the initial agreement.
Wipro has also signed an MoU with HAL (Hindustan Aeronautics Limited) to bring first-in-class 3D printing services to India’s aviation sector. HAL and Wipro 3D, a metal additive manufacturing business wing of Wipro Infrastructure Engineering (WIN), will design, develop, repair, and manufacture Aerospace components through metal additive technology.
- The total income of Wipro as of March 2021 is Rs. 13793.20 crores
- Total expenses of Wipro at the end of March 2021 stands at Rs. 9681 crores
- Its operating profit in March 2021 remains at Rs. 3579 crores
- The latest interim dividend issues by the company stand at 50%
- The latest closing price of Wipro on 16th June 2021 was Rs.555.7
With the rapid progression of the global automotive market, and the integration of modern technologies, this new venture from Wipro, if done right, holds high potential. Also, being the 3rd largest software company in India, there is good scope of growth for them in the share market.