QNX, a division of BlackBerry Limited released the India findings from a new global research study examining how regulatory complexity and software recalls are reshaping software-defined vehicle (SDV) development.
The study, which surveyed 1,100 automotive software developers across North America, Europe, and Asia, including 100 in India, highlights the growing strain of long development cycles, integration challenges, and the need for OEMs to rethink their software strategies.
Regulatory Complexity and Software Recalls Reshape Priorities
Developers are navigating an increasingly complex regulatory landscape. More than one quarter (26%) of Indian respondents report delayed timelines as a direct result of evolving compliance demands, perhaps unsurprising given that over 500 new regulations and legislative proposals affecting in-car technology were introduced globally in 2024. Top challenges cited were software update and OTA mandates (54%), cybersecurity regulations (52%), data privacy laws (44%), and functional safety standards including ISO 26262 (38%).
These pressures are reshaping development priorities: 72% of Indian developers – the highest globally – say recent software recalls have significantly changed their approach, with nearly 40% calling these changes “major.” Despite this, 99% of Indian developers say they’re confident in their ability to stay compliant – the highest globally.
“Global regulatory frameworks are evolving, but not fast enough to match the pace of innovation,” said Manuel Tagliavini, Software Principal Analyst, Automotive Supply Chain & Technology at S&P Global Mobility. “OEMs should build resilience into development, realign internal organizations for software lifecycles, and – where appropriate – consider targeted collaborations to navigate compliance while maintaining speed and agility.”
Development Bottlenecks Threaten SDV Progress
These regulatory pressures are compounding existing development bottlenecks. Indian developers cited long cycles (49%) – the highest globally – alongside integration complexity (47%) and regulatory compliance (45%) as top challenges their teams struggle with. Notably, just 31% rated their current development environment as “excellent” for productivity. These inefficiencies are exacerbated by the growing disconnect between consumer expectations and software delivery timelines – which Indian respondents attribute to regulatory delays (60%), hardware limitations (55%) and skills shortages (51%).
OEMs Urged to Get Out of the Software ‘Plumbing’
Looking towards the future, a striking 85% of Indian developers – the highest globally – believe OEMs should focus less on foundational software infrastructure development and more on application-layer innovation – a move seen as key to accelerating time-to-market and delivering differentiated consumer experiences. Additionally, 98% cite cross-industry partnerships as vital to their current projects, with nearly three quarters (72%) reporting strong support for collaborative development practices. Together, these findings point to a growing recognition that strategic alliances and a reallocation of engineering focus could help unlock greater innovation for Indian automakers.
“Software is the cornerstone of the entire SDV stack, from chip to cloud. For OEMs and the automotive sector to accelerate time-to-market and achieve scale, it is essential that foundational software be developed with a trusted and capable partner. Pursuing a vertical approach to foundational software may impede transformation due to inherent complexities, regulatory requirements, and skills shortages, and this is consistent across geographies and even in India. Establishing co-innovation partnerships will foster agility and deliver the standardized safety and security frameworks required to advance into the SDV era,” said Neil Shah, Vice President, Research & Co-Founder, Counterpoint Research.
AI Poised to Transform Development Workflows
The research also revealed that Indian developers are optimistic about the role of AI in automotive software with 93% expecting it to play a transformational or significant role in the next 3–5 years, and estimate that 43% of their current workforce could be replaced by AI tools by 2035. A majority (59%) also believe AI-driven personalization will be the defining SDV feature by 2030, the highest among all regions surveyed.
“QNX’s trusted foundational software supports future-proof engineering design, from digital cockpits and advanced driver assistance systems (ADAS) to infotainment systems and domain controllers, enabling automakers to bring innovation to market faster and at lower cost,” said Raj Jain, Vice President Engineering and Head of QNX India. “While AI offers promise, the OEMs making real progress towards a SDV driven future are those rethinking how and where their engineering teams are focused – building the right partnerships and shifting energy toward innovation that directly impacts the in-car experience for drivers and passengers alike.”
As SDV complexity grows, QNX remains committed to helping automakers navigate change, accelerate innovation, and deliver safer, smarter vehicles. QNX is trusted as the foundation for a software-driven future by most leading OEMs and Tier 1s worldwide, including BMW, Bosch, Continental, Dongfeng Motor, Geely, Honda, Mercedes-Benz, Toyota, Volkswagen, Volvo, and more.
