HCLTech's Strategic Position in Automotive AI Transformation: AI-Driven Digital Foundations as a Catalyst for Long-Term Growth in IT Services

The global automotive industry is undergoing a seismic shift, driven by the rapid adoption of artificial intelligence (AI) in autonomous systems, smart manufacturing, and customer-centric digital solutions. At the forefront of this transformation is HCLTech, a global IT services leader that has positioned itself as a critical enabler of AI-driven innovation in the automotive sector. By leveraging strategic partnerships, cutting-edge platforms, and a robust financial performance, HCLTech is not only capitalizing on the current wave of disruption but also laying the groundwork for sustained growth in an industry projected to expand at a staggering 55% CAGR through 2035HCLTech Surpasses $13.8 Billion Revenue in FY25, Fuels Growth with 9.3 Billion in AI-Driven Deals and Sets Confident FY26 Outlook^[1].

Strategic Partnerships and AI-First Innovation

HCLTech's approach to automotive AI is defined by its ability to forge high-impact collaborations that address the sector's most pressing challenges. A prime example is its multi-year partnership with Astemo Cypremos, a joint venture between Toyota and Hitachi, to develop autonomous and smart vehicle ecosystems. By integrating its TestSphere platform for software testing and AI Force—a generative AI service transformation tool—HCLTech is accelerating the development of self-driving technologies and driver-assist systemsHCLTech collaborates with Astemo Cypremos to drive autonomous vehicle ecosystem^[2]. This partnership underscores HCLTech's dual focus on full-stack innovation and responsible AI practices, ensuring that clients can scale AI capabilities while adhering to rigorous safety and compliance standards.

Equally significant is HCLTech's collaboration with Volvo Cars, where the company provides engineering services to support the automaker's transition to future mobility. This includes AI-driven digital twins for vehicle design and simulation, as well as cybersecurity solutions for connected vehiclesHCLTech, Volvo Cars collaborate for engineering transformation^[4]. Meanwhile, HCLTech's partnership with AMD highlights its role in shaping open ecosystems for enterprise AI, combining AMD's high-performance computing hardware with HCLTech's systems integration expertise to deliver scalable AI solutionsHow HCLTech and AMD shape open ecosystems for enterprise AI^[5]. These alliances position HCLTech as a bridge between automotive OEMs and the cutting-edge technologies required to compete in a rapidly evolving market.

Financial Performance: AI as a Growth Engine

HCLTech's strategic bets on AI are translating into measurable financial success. For FY25, the company reported $13.84 billion in revenue, a 4.3% year-over-year increase, with AI and digital services contributing to a key segment of this growthHCLTech Surpasses $13.8 Billion Revenue in FY25, Fuels Growth with 9.3 Billion in AI-Driven Deals and Sets Confident FY26 Outlook^[1]. Digital Services revenue alone grew by 8.6% YoY, accounting for 39% of total Services revenue, reflecting the accelerating demand for AI-led transformationHCLTech collaborates with Astemo Cypremos to drive autonomous vehicle ecosystem^[2].

The company's Q3 FY25 results further highlight its momentum, with $3.5 billion in revenue and a 4.1% YoY growth rateHCLTech Surpasses $13.8 Billion Revenue in FY25, Fuels Growth with 9.3 Billion in AI-Driven Deals and Sets Confident FY26 Outlook^[1]. This was driven by AI and digital projects, including a $2.1 billion in new deal bookings during the quarter. Notably, HCLTech secured a major engineering services agreement with a U.S.-based hi-tech company to develop AI-powered silicon and software-defined vehicle solutionsHCLTech Surpasses $13.8 Billion Revenue in FY25, Fuels Growth with 9.3 Billion in AI-Driven Deals and Sets Confident FY26 Outlook^[1]. Such wins validate the company's ability to monetize its AI capabilities in high-growth automotive segments.

Industry Context: A $1.7 Trillion Opportunity

The automotive AI market is expanding at an unprecedented pace, driven by demand for autonomous vehicles, advanced driver-assistance systems (ADAS), and AI-powered manufacturing. In 2025, the market is valued at $22.3 billion and is projected to surge to $1,788.4 billion by 2035, fueled by a 55% CAGRHCLTech Surpasses $13.8 Billion Revenue in FY25, Fuels Growth with 9.3 Billion in AI-Driven Deals and Sets Confident FY26 Outlook^[1]. HCLTech's focus on both hardware-software integration and AI-driven service models aligns perfectly with this trajectory.

Regionally, North America remains the largest market, but the Asia-Pacific region is emerging as a high-growth hub, driven by government initiatives and rising adoption of self-driving technologies in China and IndiaAutomotive AI Market Booms USD 7.72 Bn in 2025 at 10.55% CAGR^[3]. HCLTech's global footprint—spanning Europe, the U.S., Japan, and Australia—positions it to capitalize on these regional dynamicsHCLTech collaborates with Astemo Cypremos to drive autonomous vehicle ecosystem^[2]. Additionally, the company's emphasis on agentic AI and automation in Q4 FY25, which led to 12 new AI contractsHCLTech collaborates with Astemo Cypremos to drive autonomous vehicle ecosystem^[2], signals its readiness to address the next phase of industry demand.

Case Studies: Real-World Impact of HCLTech's AI Solutions

HCLTech's value proposition is best illustrated through its client success stories. One standout is the AutoWise Companion, a generative AI-powered platform built on AWS that enhances the vehicle purchasing experience. By leveraging large language models, the platform provides personalized recommendations to customers while enabling automakers to analyze feedback for strategic decision-makingHCLTech Surpasses $13.8 Billion Revenue in FY25, Fuels Growth with 9.3 Billion in AI-Driven Deals and Sets Confident FY26 Outlook^[1]. This solution not only improves customer satisfaction but also drives operational efficiency for original equipment manufacturers (OEMs).

Another example is HCLTech's work with an automotive client to transition their Vehicle Digital Passport to a subscription-based model. The company integrated UX/UI enhancements, secure payment processing, and QR code-based access, creating a seamless user experienceHCLTech, Volvo Cars collaborate for engineering transformation^[4]. These case studies demonstrate HCLTech's ability to transform traditional automotive processes into AI-driven, customer-centric models—a critical differentiator in an industry increasingly defined by digital innovation.

Future Outlook: Sustaining the Momentum

HCLTech's FY26 guidance of 2%-5% YoY revenue growth and an EBIT margin of 18%-19%HCLTech collaborates with Astemo Cypremos to drive autonomous vehicle ecosystem^[2] reflects confidence in its AI and digital strategy. The company plans to invest in new labs and innovation hubs, including a Singapore-based AI/Cloud Native Lab and an SAP Business AI lab in Germany, to stay ahead of technological curvesHow HCLTech and AMD shape open ecosystems for enterprise AI^[5]. These initiatives, combined with its leadership in ISG's 2025 Provider Lens™ report for Automotive and Mobility ServicesHCLTech Surpasses $13.8 Billion Revenue in FY25, Fuels Growth with 9.3 Billion in AI-Driven Deals and Sets Confident FY26 Outlook^[1], reinforce HCLTech's credibility as a long-term partner for automotive AI transformation.

Conclusion

HCLTech's strategic positioning in the automotive AI sector is a masterclass in aligning technological innovation with market demand. By combining strategic partnerships, financial discipline, and a deep understanding of industry pain points, the company is not only capturing today's opportunities but also building a foundation for tomorrow's growth. As the automotive industry hurtles toward a future defined by autonomy, connectivity, and sustainability, HCLTech's AI-driven digital foundations are poised to be a key catalyst for long-term value creation.