Qualcomm Targets $8 Billion Automotive Revenue By 2029, Eyes Startup Acquisitions: Report

Global semiconductor major Qualcomm Technologies is expanding its automotive footprint in India, driven by the rapid digital transformation in the mobility sector. The company, which currently operates with a substantial engineering base of 22,000 professionals in India, is actively pursuing strategic acquisitions of local startups to give a push to its research and development capabilities in the automotive space, says a report by ET Auto.

Nakul Duggal, Group General Manager, Automotive and Industrial & Embedded IoT at Qualcomm Technologies was quoted as saying by ET Auto: "It's really about the level of attention we're giving to the Indian market, and that's driven by the future opportunity we see. As the market evolves from being relatively low on digital integration to becoming increasingly digital-first, the potential becomes more compelling."

Journey In Indian Automotive Landscape

Qualcomm's automotive focus in India began six to seven years ago, coinciding with the emergence of electric vehicles (EVs) and digital-first platforms. The company has witnessed significant evolution in how original equipment manufacturers (OEMs) approach localisation and differentiation strategies.

Duggal observed that major automakers have developed sophisticated approaches to adapting global platforms for local market requirements. However, this adaptation process presents complexities, as manufacturers must create competitive solutions within India's unique ecosystem while addressing global technological challenges.

Consumer Willingness To Pay For Digital

A key market insight emerged from Qualcomm's interactions with motorcycle manufacturers. The company discovered that consumers demonstrate strong preference for digital features when presented with meaningful value propositions.

"We spoke with two manufacturers who shared an interesting insight. They produce a specific motorcycle model in two variants: one with a digital cluster and another with an analog. They initially built 20 per cent of the bikes with digital clusters and 80 per cent with analog ones. The digital version sold out immediately, while demand for the analog version remained largely unchanged. And the price difference was just ₹500 to ₹1,000," Duggal said.

OEMs Embrace Direct User Experience Control

The automotive industry has undergone a fundamental shift in differentiation strategies over the past decade. Previously, manufacturers relied on superficial customisations of standardised platforms, modifying visual elements while maintaining identical core software.

"Today, it's not just about customisation, it's about owning the entire user experience," Duggal emphasised.

This is exemplified by Qualcomm's collaboration with Epic Games, which integrated Unreal Engine technology to enable sophisticated, custom automotive interfaces. However, this approach requires OEMs to develop internal capabilities, including tool mastery, design specification, and user experience vision development.

Snapdragon Digital Chassis

Qualcomm's Snapdragon Digital Chassis represents a shift in how automakers approach technology integration. The platform moves beyond traditional "black box" solutions that offer limited visibility into system architecture.

"The digital chassis is fundamentally about simplifying what OEMs have traditionally sourced from tier-1 suppliers. Typically, automakers interact with a box offering fixed features, without visibility into how the system is built. Our approach changes as we educate and empower OEMs to make informed decisions and co-develop complete, end-to-end solutions with us," Duggal said.

Partnership With Google

The company leverages its decade-long partnership with Google to integrate consumer-focused experiences into automotive environments. This collaboration encompasses Google Maps, Android OS, voice assistants, and recently, Gemini AI integration.

"However, vehicles require these features to coexist with safety-critical, real-time systems, which is something beyond Google's traditional smartphone focus. We address that by offering a pre-integrated platform with Google's ecosystem built in, dramatically reducing the complexity and friction for automakers," Duggal noted.

ADAS And Infrastructure Intelligence Vision

Looking toward Advanced Driver Assistance Systems (ADAS) adoption, Qualcomm sees significant opportunity for India to implement intelligent infrastructure from the ground up. The company advocates for situational awareness technologies, including road-mounted cameras that provide real-time hazard alerts.

The executive also highlighted China's successful implementation of Vehicle-to-Everything (V2X) technology on new highways five years ago, where drivers received portable units at toll booths for real-time safety alerts.

"India has a unique opportunity to leapfrog by building intelligent infrastructure from the outset. Situational awareness, enabled by technologies like road-mounted cameras, can significantly reduce congestion and accidents by alerting drivers in real time about hazards such as animals, pedestrians, or unlit parked vehicles," Duggal explained.

Revenue Targets and Acquisition Strategy

Qualcomm has set ambitious financial targets for its automotive division, aiming to reach $8 billion in revenue by 2029. The company currently generates approximately $950 million in quarterly automotive revenue.

Regarding expansion through acquisitions, particularly focusing on Indian startups in the automotive technology sector, Duggal confirmed the company's openness to strategic investments.