This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside

the client organization without prior written approval from Zinnov.

This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside

the client organization without prior written approval from Zinnov.

August 2016

R&D Engineering – Bay Area Analysis

Bay Area, Los Angeles, India, China, Romania and Vietnam are attracting R&D investments from G500 companies

Source: Zinnov GEIP

Bay Areas has evolved as the primary focus with all large Automotive companies setting up R&D centres there

3

Autonomous

Electric

In Car

Experience

New Age

Infotainment

Ride Share

To invest $1 billion in SFO over next five years in AI

and self-driving cars R&D

Bay Area

Drivers Followers

Invests $182 million next-gen cloud computing

firm Pivotal for self-driving tech; developed aDrive

gaming atmosphere for autonomous test driving

opened R&D center in Sunnywale focusing on HMI

based virtual dashboard (DICE) and content delivery

Emerging Players

Ford Research & Innovation Center, Palo Alto, is

working with Carbon 3D to make elastomer

grommets for Ford Focus Electric

Mountain View and Palo Alto team work on HMI,

Sensor technology; created controller of iDrive

partners with Lyft to start ride sharing taxi trial within

a year

Tests its car sharing service DriveNow in Seattle, taking

On Car2Go

ERL integrated Google Earth maps into Audi’s navigation

System; a development hub for VW Group’s

new modular infotainment toolkit

Joint Research center with Argonne Laboratory

focusing on Li- Ion Batteries research

Source: Zinnov GEIP

OEMs and Tier 1s have drastically increased R&D investments in Bay Area over last 5 years

34

56 6

78

14

19

21

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Automotive Companies R&D Setup – Bay Area

Tesla’s first production vehicle - Roadster was

launched

27 R&D Centers

OEMs in Bay Area

Tier-1s in Bay Area

No

. of

Au

tom

oti

ve

Co

mp

an

ies

Year

Tesla’s Model S unveiled

3700 Engineers

Tesla Founded

Source: Zinnov GEIP

Need for New age skills in Automotive Industry is the primary driver for this shift(1/2)

5

UI/UXData

ScienceConnectivity

Electric

Vehicle

Material

Research

1998~150 12% 17% 31% 9% 4%

2012~125 10% 30% 30% 5% -

1998~240 34% 22% 30% 4% 2%

2001~300 15% 30% 20% 5% -

Volkswagen ERL works on a wide set of disruptive

technology areas for the entire range of Volkswagen

brands; Also acts as a listening post for start-ups in the

Bay Area

The Palo Alto team developed a virtual test environment

based on gaming software, called aDRIVE that will test

algorithms such as traffic sign recognition in dynamic

driving situations

2003~2,800 9% 9% 10% 8% 4%Tesla is a Pioneer in the Bay Area with its end to end

R&D location located there creating an ecosystem for

Automotive disruption

User Experience Design, Autonomous Driving,

Connected Car, Business innovation, Electric Vehicles

are the top priorities of the MBRDNA team

Toyota majorly focusses on AI and Connected Cars out of

Bay Area. Has plans to invest around $1B in Bay Area

focussing on the AI and Connected Cars

YoER&D HeadcountR&D Headcount

Source: Zinnov GEIP

Need for New age skills in Automotive Industry is the primary driver for this shift(2/2)

6

YoER&D Headcount

UI/UXData

ScienceConnectivity

Electric

Vehicle

Material

Research

2014~50 18% 20% 2%

2010< 40 37% 22% - -

2013~35 3% -

2013~30 7% 18% 5%

Work on hi-end Infotainment & Connected R&D. Key

activities include Google Glass integration with ADAS and

Infotainment systems

The Silicon Valley Lab functions as a listening post for

startups and university research. Also has engineers who

work majorly on UI/UX for Infotainment systems.

1999~100 19% 18% 17% 4%Autonomous Driving, Sensor Tech., Computer Vision,

ADAS, Battery Tech., are largely driven out of the Bay

Area center

Continental’s Intelligent Transportation Systems is

headquartered out of Bay Area that focuses majorly on

Connected Tech., ADAS and Autonomous Driving

Delphi’s laboratory works on infotainment systems and

crash-avoidance technology. Delphi has a connected car

start-up focus backed by a $100 million venture fund

70%

20% 4%

37%*

16% 15%9%

4% 11%

Source: Zinnov GEIP

Bangalore

69 "Prathiba Complex",

4th 'A' Cross,

Koramangala 5th Block,

Bangalore-560 095.

Phone: +91-80-41127925/6

Singapore

Level 42, Suntec Tower Three

8 Temasek Boulevard

Singapore 038988

Phone:+65 6829 2123

Texas

21, Waterway Ave

Suite 300

The Woodlands

TX-77380 USA

Phone:+1-281-362-2773

Beijing

Meilifang Tower 4, Entrance 4,

10/F #1003,

11 Beiyuan Shuangying Road,

Chaoyang District, Beijing

China 100012

Thank You

Gurgaon Office:

First Floor,

Plot no. 131, Sector 44,

Gurgaon-122002,

Phone: +91 124 4420100

California Office

3080 Olcott Street

Suite A125,

Santa Clara, CA 95054

Phone: +408-716-8432