Tata Tech (which was spun out of Tata Motors) is part of the Tata group which owns JLR and Tata Motors. Many large OEMs will be vary of using an entity related to a competitor.
I agree valuations are high, but the total addressable market (TAM) is large and KPIT seems to have critical mass. I also like the series of acquisitions they have done viz. Technica, FMS, Somit Solutions, and the tie-ups Qorix with ZF and recently AirConsole. This gives the potential to increase the wallet share of OEM software spending even more.
software cost in EV is just 4/5%
It is not just software in an EV, but a lot of services are also moving online from selling a car, servicing, recovery, value-adds, and car sharing/hire. All these also require software platforms.
In addition to software KPIT also provides test and validation platforms. For a software defined vehicle, this is absolutely critical.
Plus execution has been flawless and investor communication is great.
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