How Bengaluru-based Embitel became a key tech arm for Volkswagen

Last year, automotive technology solutions company Embitel completed its integration into Volkswagen Group. This was the culmination of the partnership that started in 2019. Today, Bengaluru-based Embitel operates as the nerve center of Volkswagen Group’s IT and digital technology efforts.

Founded in 2006, Embitel offers digital transformation solutions in Automotive, Internet of Things, and Connected Car domains. It provides end-to-end solutions from concept to production for a global client base.

Just before COVID-19 hit, automobile giant Volkswagen was actively seeking an engineering partner in India to support its global growth ambitions. It took a minority stake in Embitel in 2019, drawn by the company’s expertise in automotive software. This strategic bet paid off, leading to Embitel’s full acquisition by the Volkswagen Group in 2022.

“Embitel was initially identified as the logical partner to support CARIAD’s global mission from India. This led to the formation of CARIAD India, a dedicated business unit under Embitel. The goal was to leverage the strength of Volkswagen’s brands like Audi, Porsche, Volkswagen, and others, and build a team that could contribute directly to the group’s global platform development,” said Sharad Bairathi, CEO and Managing Partner of Embitel.

After the acquisition, Embitel is now a Volkswagen company and operates in what Bairathi refers to as a GCC+1 model. Under this model, Embitel serves both its parent group and a portfolio of third-party clients across the digital and automotive sectors. In fact, today, around 30% of Embitel’s revenue comes from external clients.

“Our model ensures that while we serve the Volkswagen Group as a best-in-source engineering partner, we continue to grow our third-party business too. “Volkswagen benefits from this too; we bring in learnings from across the board, while ensuring complete data and IP security with physical and virtual silos between client work,” Bairathi added.

Building tech and talent capabilities

Technology-wise, Embitel's transformative moment came in 2014, when the global shift toward electric vehicles (EVs) began accelerating. Technologies that the company had been developing—over-the-air (OTA) upgrades, infotainment systems, telematics, EV motion controllers, onboard chargers, and battery management systems, suddenly found themselves in high demand.

This opened doors to EV OEMs not just in India, but in Silicon Valley and Europe. “The EV supply chain is fundamentally different from traditional auto,” notes Embitel. “We were able to align with new OEMs quickly, and our expertise gave us an edge.”

Today, over 8 million vehicles on the road carry Embitel-developed components, and the company has worked with more than 100 global clients.

Further, Embitel aims to expand its workforce to 4,000 employees by 2030 from the current 1,300. It has ramped up recruitment across its locations in Bangalore, Pune, Ahmedabad, and Coimbatore.

Technologies in focus include ADAS, energy systems, AI and data platforms, cybersecurity, and software-defined vehicle (SDV) platforms. “We’re hiring 600–700 people a year,” Bairathi noted.