KPIT Says Renault Tie-Up Will Bring More Large Deals

The strategic partnership with Renault SA will set the template for large, multi-year, fully involved deals in the coming years, according to KPIT Technologies Ltd.

KPIT has been selected as a strategic software scaling partner for the next-generation software-defined vehicle platform being developed by Renault’s recently launched new-age business arm, Ampere. With this deal, Renault has become one of KPIT’s marquee top 25 clients.

Over the past four to five years, different original equipment manufacturers have attempted to enter large, multi-year, fully involved partnerships, similar to the Renault-KPIT deal, Sachin Tikekar, president and joint managing director at KPIT Technologies, said in a conversation with BQ Prime’s Niraj Shah.

"It's just the cleanest and the simplest structure to understand, and it's fully committed. From that perspective, it is a great template to follow. My suspicion is that, looking at other OEMs, they are actually following the same model. We'll see more and more of that coming out as we get into 2023."

The software-defined vehicles platform project alone is a three-digit million-dollar deal, said Tikekar, adding that discussions are underway with Renault for more projects in the future. “We want to remain focused on the SDV platform project as it is most critical from Ampere's perspective.”

Ampere will become home to Renault’s electric vehicle, an EV component, and SDV platform verticals. The French auto major has roped in Qualcomm and Google for the semiconductor and cloud aspects of businesses under Ampere, while KPIT will extend its expertise on the automotive software side.

“We are building the software-defined vehicle platform, where the actual vehicle will be on the road in 2026. We have already started the work on this and we are closely working with Renault currently, along with Qualcomm and Google,” Tikekar said.

Just as with its other top 25 clients, KPIT is taking a long-term view on its association with Renault, the company president said. “With Technica, PathPartner Technology, and SOMIT Solutions in our fold, there is an opportunity to create value for Renault and Ampere,” he said.

On operational metrics for the SDV project for Renault, Tikekar assured the required talent will be at hand.

“Both talent retention and attraction have improved, and we hope it will continue to improve. We have already ramped up significantly for Renault, and that ramp-up will continue for the next 6–9 months."

“The platform is being built from the ground up," Tikekar said. "KPIT has certain assets that are already ready, so we'll use them.”