Qualcomm is focusing on expanding its revenue in India by supplying semiconductors for connected vehicles, AI applications, and 5G technology, according to Savi Soin, the senior vice president and president of Qualcomm India.
Soin noted that although current revenue from automotive clients is modest, the company sees substantial growth potential. With less than 5% of two-wheelers in India connected, applications like location-based tolling will drive demand for more chips and modems in vehicles.
Connected vehicles can communicate with each other and with external devices via internet connectivity. Uday Dodla, senior director and head of automotive and AI products at Qualcomm India, mentioned that the company is in advanced testing phases with local car manufacturers to implement their chips. “We are incorporating higher memory and newer chips, down to 5nm, to support voice-based AI interfaces in cars, which we expect to become common in vehicles priced under ₹10 lakh,” Dodla added.
Soin acknowledged that while automotive revenue doesn’t yet match mobile phone sales, the company anticipates a significant increase over the next three years. He stated, “Automakers now seek cutting-edge experiences, requiring next-generation chips rather than legacy models modified for automotive use. This shift will drive our business growth.”
Industry analysts suggest that companies like Qualcomm and Taiwan’s MediaTek, which dominates the mobile chip sector in India, have strong potential for growth in the world’s most populous nation. Tarun Pathak, research director at Counterpoint India, indicated that the next growth phase is expected to come from affordable, high-volume smartphones as AI applications gain traction. He emphasized that chips are essential for modern vehicles, as connectivity becomes critical for feature-rich designs.
Qualcomm believes that connected cars will become commonplace in the coming years. A McKinsey report from August last year projected that by 2030, 95% of new vehicles would be connected. The rise of connected vehicles is anticipated to transform how drivers interact with their cars. For instance, vehicles equipped with advanced driver assistance systems can navigate without human input, optimize routes using live traffic data, adjust climate controls based on weather conditions, and communicate real-time mechanical information to service centers.
Qualcomm is actively conducting trials with leading Indian automotive brands and has established public partnerships with Mahindra & Mahindra and Tata Motors for passenger vehicles. Soin remarked that as the connected vehicle market in India grows, it could contribute significantly to Qualcomm’s global revenue.
In FY22, Qualcomm reported $1.39 billion in revenue from India, which accounted for only 3.1% of its total global revenue of $44.2 billion. This limited contribution has raised concerns regarding India’s value addition to the company’s operations, despite its strategic importance as a significant consumer market.
Soin stated, “India can generate revenue for global tech firms; it just requires time. The digitization journey began two years ago with the rollout of 5G. Now, as connectivity expands nationwide and 5G smartphones are available for as low as ₹8,000 ($95), we expect revenue growth to follow once pricing and product strategies are aligned. Indian brands are also advancing rapidly in cockpit digitization across all price ranges, attracting increasing interest from semiconductor firms.”
In addition to the automotive sector, Qualcomm is aiming for a larger share of the low-cost smartphone market to enhance its revenue and monetization in India. Soin mentioned, “We are working to integrate 5G and AI across all price segments and anticipate AI applications to proliferate in affordable devices soon. While most devices already incorporate AI for background operations, we expect applications to expand across various devices, creating a significant market opportunity.”
As of the June quarter, smartphones priced under $200 (₹17,000) represented 44% of sales volume in India. Qualcomm currently holds the second position in India’s mobile chipset market, trailing behind MediaTek, which commands over 50% of the market share, while Qualcomm holds around 25%, according to IDC India data from February this year.
