L&T Technology Services Ltd., a unit of Larsen & Toubro Ltd., India’s largest construction conglomerate, is ramping up its investment in self-driving and electric vehicle (EV) technologies. The company is leveraging India’s reputation as a global hub for manufacturers eager to expand in these areas.

The engineering services division, providing services to major clients like BMW AG and Airbus SE, is targeting rapid growth after reaching sales of $1 billion in the fiscal year that ended in March, said CEO Amit Chadha. The firm’s strategic goal is to boost its revenue to $1.5 billion over the next two years.

To fulfill this ambitious target, L&T Technology Services has set up design and engineering facilities for autonomous and electric vehicle technologies in Bengaluru, Munich, and Peoria, Illinois over the past three years. This move places the company in closer proximity to vehicle manufacturers. The firm is thriving amidst the global shift towards more sustainable transport solutions, while sectors such as tech, telecom, and construction struggle with a sluggish economy and rising inflation.

“A significant part of our growth is now coming from electric autonomous vehicles — not just cars, but buses, track and hybrid aircraft as well,” Chadha said. “We are scaling up.”

The firm has been actively hiring skilled engineers to aid clients in designing superior battery management systems and EV chargers. In a parallel pursuit, it is developing AI systems that train autonomous vehicles to identify road objects independently.

India, once seen as a hub for basic tech outsourcing, is now emerging as a powerhouse in more advanced areas. According to a KPMG report, India leads the global engineering research and development outsourcing industry, accounting for one-third of the $40 billion market.

However, Apurva Prasad, Vice President at HDFC Securities, cautions that India is not insulated from global challenges. “If global spending on research and development decreases, the demand for engineering services is expected to decline,” he explained.

Beyond the transportation industry, L&T Technology Services is also expanding its investments in medical technology, 5G, and sustainability, as per Chadha. “The biggest concern that keeps me up at night is the risk of becoming obsolete in the technology world,” he admitted. “As long as we remain relevant, growth will continue to be evident.”

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