AUMOVIO Engineering Solutions Forges Its Own Path in India’s High-Value, Low-Volume Market

In the  global automotive supply chain, where volumes often dictate profitability, a specialized unit is attempting to carve out a lucrative niche focused on the tailored and the unique. AUMOVIO Engineering Solutions (AES), the dedicated engineering arm of the recently independent AUMOVIO SE, has embarked on a new beginning following its separation from Continental, charting a course toward high-value, low-volume opportunities, particularly within the fast-growing Indian market.

The firm intends to capture these specialized projects across varied sectors, including two-wheelers and infrastructure, building upon approximately 15 years of foundational growth already established in India, according to Managing Director Jean-Michel Verdier.

The creation of AES comes amid a broader restructuring for its parent company, AUMOVIO SE, which began trading as an independent entity on September 18. While AUMOVIO SE focuses on mass-market penetration across product categories like advanced driver assistance systems (ADAS), connectivity, electrification, and chassis systems, AES’s core strength lies in its ability to deliver customized solutions for requirements that fall well below typical mass-production thresholds. 

AES, formerly known as Continental Engineering Services (CES), evolved its India operations through distinct phases. Initially, the company operated alongside Technical Center India (TCI), providing engineering support to the local Indian market and helping Continental Automotive (AUMOVIO’s predecessor) establish its presence in the country. 

The second phase involved aggressively building up research and development capabilities specifically to support global engineering teams. This work included involvement in a wide range of global projects, such as developing systems for ultra-premium sports car brands like Ferrari, working on automated people movers, and creating radar systems crucial for railway level crossings and highway safety applications. In essence, CES operated as a "shadow organization" to AUMOVIO within India, simultaneously cultivating specialized capabilities and delivering solutions directly from India to contribute to the global AES strategy. 

“Now, we’re entering the third phase, which is focused on identifying and acting on the first major business opportunities specifically for the Indian market,” Verdier stated, noting that the company is currently evaluating which technologies and expertise are most critical for India. “So, while we already have some success globally, our local journey is just entering an exciting new chapter”.

This new chapter hinges on AES’s distinct business model. These unique customer segments include performance OEMs, like Bugatti or Ducati in the two-wheeler space; emerging electric vehicle (EV) startups whose low volumes make them unsuitable for AUMOVIO’s standard production lines; and Tier 1 suppliers who require specialized support in electronics or software. Furthermore, AES actively engages in non-automotive mobility, including the engineering of autonomous shuttles and drones. 

Verdier outlined five strategic pillars for AES's growth in India. The company plans to apply automotive-grade technology to highway infrastructure, using advanced safety systems like radar to enhance road safety. Two-wheelers represent another key focus, with AES developing premium features like Twin Motor Control Technology for India's rapidly growing market of over 18.8 million units annually.

The strategy also emphasizes automotive customization for limited edition vehicles requiring bespoke features, while supporting the premium segment as Indian consumers shift from entry-level to higher-end vehicles seeking greater differentiation. Finally, AES is establishing what Verdier calls a "special" market focus rather than "niche," targeting low-volume, high-value solutions with highly tailored features. This multi-pronged approach positions AES to capture diverse opportunities across India's evolving automotive and infrastructure landscape.

While the mass-production oriented AUMOVIO requires massive order quantities, AES is engineered to handle volumes ranging from a single unit up to 1,000 units per day. Verdier confirmed that they can go "as low as a single unit," emphasizing that such minimal orders would be insignificant for a mass-production business area like AUMOVIO.

A key strategic hurdle in India, as the executive acknowledged, is the necessity of adapting globally mature technology to fit the unique local pricing and environmental conditions. While cost-sensitivity is universal, India presents unique market dynamics. AES addresses this by implementing a strategy termed “right-sizing”. This approach aims to strike a crucial balance, avoiding both over-engineering, which results in a product that is too costly, and under-engineering, which compromises quality and fails to meet customer expectations. This meticulous customization extends to sophisticated IT and data solutions, ensuring the customer pays only for the features that are strictly necessary. “What we do is customize. We adapt these existing technologies to fit their cost and functionality expectations,” Verdier confirmed, stressing that bringing this routine global expertise to the Indian market is central to the strategy