What will drive the next era of automotive electronics in India? Dr Tiemo Bückmann of APAGCoSyst speaks with EFY’s Shubha Mitra and Nidhi Agarwal about AI-driven innovation, system integration, supply-chain resilience, and the company’s India growth strategy.
Q. Could you introduce your company and its global presence?
A. At APAGCoSyst, we develop a wide range of electronic products used worldwide, primarily focused on comfort electronics, exterior lighting solutions for the automotive sector, as well as applications for industrial and medical customers. Our headquarters are in Switzerland, while our main production facilities are located in the Czech Republic and Canada, just outside Detroit. Recently, we collaborated with India’s Anand Group to expand our presence locally. We have been operating in India for more than 12 years, initially through our research and development (R&D) activities. Over time, additional functions such as procurement and project management were added. Production started about two years ago, and we are now gradually expanding manufacturing operations in India alongside our global teams. Our Indian R&D organisation works closely with international teams to develop automotive and industrial solutions.
Q. How do you view the potential of the Indian automotive electronics market?
A. The Indian market offers enormous potential and is developing very rapidly. Features that were once exclusive to premium European vehicles, such as advanced interior lighting systems, steering wheel adjustment mechanisms, and enhanced comfort electronics, are quickly becoming mainstream in India. This growing demand strongly aligns with our expertise and positions India as a highly strategic market for future expansion.
Q. Why is India becoming an important global manufacturing hub?
A. India’s geopolitical neutrality, democratic framework, and strong trade relationships with regions such as Europe and North America make it an attractive manufacturing location. Our global hub strategy allows partial development work to be carried out in India while specialised production and just-in-sequence deliveries are coordinated worldwide. This approach enables us to combine global efficiency with local flexibility.
Q. How do you evaluate India’s engineering talent pool?
A. India offers an exceptional talent pool with deep technical expertise. The level of technical knowledge is impressive, and we benefit greatly from our local teams’ capabilities. We emphasise strong company values, flexibility, and supportive work environments to retain talent and ensure long-term engagement.
Q. How is your India team contributing to global operations?
A. The India team plays an important role in both development and system integration. We combine development and production capabilities and cover multiple domains including hardware, software, mechanics, optics, lighting, and thermal simulation. This end-to-end competence allows us to compete effectively across all aspects of system engineering and deliver integrated solutions to customers worldwide.
Q. Why did you consolidate operations in Delhi NCR?
A. We previously operated in Bengaluru but strategically consolidated operations in Gurugram to stay closer to customers and our manufacturing facility in Bhiwadi, Rajasthan. The proximity allows customers to easily access testing and validation facilities while improving the efficiency of system integration. Delhi NCR also offers strong global connectivity, which supports collaboration with international teams and customers.
Q. Who are your target customers in India?
A. Our primary customers are Tier-1 suppliers and original equipment manufacturers (OEMs) across both four-wheeler and two-wheeler segments. Typically, we collaborate closely with OEMs during the development phase and then manufacture products that enter the supply chain through Tier-1 partners, following a model similar to our European operations.
Q. What challenges do you face in the Indian market?
A. Price competition remains intense, and development timelines are demanding. Projects require faster ramp-up cycles than in many global markets, necessitating agility and strong coordination. Infrastructure and ecosystem maturity are still evolving, and although we have established strong partnerships, continuous development of the broader ecosystem will further support industry growth.
Q. What differentiates your products from competitors?
A. One of our strongest advantages is agility. We can develop products starting from a blank sheet of paper and rapidly move through design, integration, automation, and manufacturing. With experience dating back to 1974, we understand the requirements of both premium and mass-market automotive markets. This allows us to transfer proven European technologies into India while also developing market-specific innovations tailored to local customer needs.
Q. Could you highlight some products showcased recently?
A. We showcased steering wheel adjustment systems designed for future steer-by-wire vehicle architectures. These systems allow the steering wheel to reposition itself when manual control becomes necessary. We also demonstrated dynamic ambient interior lighting solutions that create animated mood lighting while delivering safety-critical alerts to drivers. In addition, we presented integrated thermal valve systems designed to improve thermal efficiency within vehicles.
Q. What technologies and innovations are you currently working on?
A. We are actively developing advanced thermal management solutions, next-generation interior and exterior lighting systems, and innovative comfort electronics for global automotive customers and e-mobility players. We typically introduce between 15 and 20 new products each year, reflecting our strong innovation pipeline.
Q. What major technology shifts are shaping the automotive electronics industry?
A. The industry is undergoing a transition toward centralised vehicle computing architectures. Instead of many distributed control units, vehicles are increasingly built around a central computing hub supported by intelligent satellite systems. At the same time, software is becoming the defining element of automotive innovation. I can say, software is no longer supporting the car; software is becoming the car. Increasing computing power, stronger AI integration, and multifunction smart systems are enabling compact modules to perform multiple roles simultaneously, fundamentally changing vehicle electronics design.
Q. How are you integrating software, automation, and safety into your operations?
A. We operate a complete software development environment that includes functional safety capabilities up to ASIL Level B in an ASPICE Level 2 environment. Every project incorporates safety, cybersecurity, and secure development practices. On the manufacturing side, automation is a major focus. We develop our own automation systems globally, covering assembly, testing, flashing, calibration, and run-in procedures. Automation enables consistency and efficiency, and we see strong potential for further automation adoption in India as manufacturing processes evolve.
Q. How do you see autonomous driving evolving?
A. While fully autonomous driving may still require time to mature globally, advanced driver assistance systems are already delivering significant safety improvements. Even partial automation helps reduce accidents and improves passenger protection. These safety advancements will have a particularly strong impact in rapidly growing markets such as India.
Q. How are you managing global supply chain challenges?
A. The electronics supply chain is inherently global, and our strategy focuses on diversification and risk mitigation. Having operations across multiple regions allows us to balance sourcing and manufacturing effectively. India plays an important role in hardware design and component sourcing, offering flexibility to import and export products based on global demand and supply conditions.
Q. Going forward, what are your key priorities?
A. A major priority is accelerating adoption of AI technologies while strengthening cybersecurity capabilities that naturally accompany increased digitalisation. Production processes continue to evolve rapidly with automation becoming more prominent. Equally important is maintaining a strong company value system across globally distributed teams. Since our workforce operates across multiple regions and cultures, maintaining alignment and collaboration is essential for long-term success.
