This will be quite valuable to KPIT. They will gain expertise in
- Integrating with QCOM chipset
- And also with Andriod Auto,
which quite a few auto OEMs should adopt as well The “Software Defined Vehicle” will bring together the best of the automotive and digital worlds to allow for new on-demand services and continuous upgrades to be delivered to the car, building on the existing Android Automotive Operating System and Google Cloud technology collaboration. https://www.renaultgroup.com/wp-content/uploads/2022/11/partnership-renault-group-google_en.pdf
This should be quite valuable in pitching similar services to other auto OEMs as a large number of second-tier OEMs would be using the same stack. KPIT also mentioned they are bringing some of their accelerators/existing IP as part of the deal. This means this deal is not purely time and material and margins should be higher.
The Technica acquisition could a masterstroke too. Not only is it EPS accretive, but it is also more than the sum of parts given the synergies and cross-selling opportunities it brings. It then expands KPIT’s offering into networking and SDV testing and validation. They will get a bigger piece of the pie in each deal. We have yet to see this in action yet.
| Subscribe To Our Free Newsletter |
