Nasscom has proposed a technology partnership linking India’s AI and software expertise with Europe’s manufacturing heritage. The initiative aims to capture nearly 25% of global car sales by 2035 through joint research and shared development. Investors should note this signals a potential long-term shift for Indian engineering firms toward deep technology collaborations rather than traditional, project-based contracts.
Nasscom Vice Chairperson Kishor Patil recently proposed a framework to create a technology superhighway between India and Europe. Speaking at the ELIV 2026 congress in Germany, he highlighted a vision to integrate India’s software and AI engineering capabilities with Europe’s deep-rooted automotive manufacturing history. The stated objective is to reach 23.1 million new-car sales by 2035, representing about one-fourth of the total global market.
For Indian investors, this move marks a potential evolution for the domestic Engineering Research and Development sector. Companies like KPIT Technologies, Tata Elxsi, Tata Technologies, and L&T Technology Services have built their business on servicing global automotive clients. Currently, many of these relationships are transactional, where Indian firms are hired to complete specific, short-term software tasks. The proposed partnership aims to move toward a model of shared intellectual property and co-developed platforms. If realized, this could allow Indian firms to move higher up the value chain by sharing both the risks and rewards of new product development.
The collaboration focuses on critical areas including semiconductors, advanced battery technology, factory robotics, and cybersecurity. The goal is to shrink the time it takes to get new technology into cars by adopting standardized platforms, similar to the rapid development models seen in Chinese automotive manufacturing. This transition toward AI-defined vehicles aims to enable faster design cycles and better testing capabilities.
While the vision is ambitious, investors should keep a balanced view. This is a strategic proposal rather than a signed contract or a government-backed deal. Significant hurdles remain. Sharing intellectual property between companies across different countries is legally and operationally complex. Furthermore, the automotive sector faces pressure from slowing demand in some global markets and high capital costs for electric vehicle transition. Success will depend on whether individual car makers and tech companies can agree on terms that protect their proprietary data while allowing for deep integration.
The key update for market watchers will be whether this proposal leads to specific joint ventures or new research centers. The ability of Indian IT firms to secure long-term, high-value contracts rather than just outsourced tasks will be the main monitorable for shareholder value. Investors may also track management commentary from major Indian ER&D players to see if they align with this collaborative roadmap.