en.Wedoany.com Reported - Varroc Engineering signed an agreement with Chinese digital cockpit solutions company Tolyy on Wednesday to localize, manufacture, and supply next-generation display solutions and controllers to passenger vehicle and commercial vehicle original equipment manufacturers (OEMs) in India.
Under this cooperation agreement, Tolyy will provide fully integrated display modules, including display panels, touch interfaces, backlight units, housings, and electronic control units, while also supplying screens alone for local assembly. Varroc Engineering will be responsible for the integration, validation, and manufacturing of these solutions in India.
The Pune-based automotive parts supplier has already begun delivering its newly localized components to two passenger vehicle OEMs. The company aims to expand its business in this segment over the next five years, anticipating strong growth in this category. Varroc senior management stated that the company has supplied digital cockpit solutions to two OEMs in India and expects advanced cockpit solutions to increasingly enter mainstream vehicles in the future.
This move aims to meet the growing demand for localized products while mitigating the impact of geopolitical uncertainties. Dhruv Jain, CEO of Business Unit II at Varroc Engineering, told ETAuto that the current penetration rate of digital cockpits in India is estimated at less than 20%, with strong growth potential expected over the next five years.
Varroc is a key electric mobility solutions supplier, manufacturing and supplying body systems solutions, lighting solutions, human-machine interface solutions, internal combustion engine powertrains, and advanced electronics to leading OEMs in both Indian and international markets.
Considering the market growth potential, Varroc plans to offer a range of infotainment display sizes from 9 inches to over 14 inches through this new partnership. The company is committed to serving the domestic passenger vehicle segment priced below INR 250,000, and its new product line will also be applied to high-end vehicles. Additionally, Varroc will supply components such as infotainment and domain controllers.
In the future, the company aims to gradually increase the localization level of these solutions beyond assembly, and stated that future localization may also include processes such as optical bonding. Jain noted that cost competitiveness and supply chain resilience will be key drivers. However, Jain emphasized that the company's product manufacturing still relies on imported semiconductors.
Varroc's latest partnership aims to expand its existing business, with domestic market supply remaining the primary focus area, as the company already has overseas factories in regions such as Europe and Southeast Asia. Jain added that exports are a potential direction the company may consider in the future.
In addition to the commercial vehicle sector, the automotive supplier is also focusing on the passenger vehicle sector, believing it offers greater growth opportunities for display solutions. The company is leveraging its global software development team, as digital cockpit systems are increasingly driven by software.
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