India’s V2V Mandate Fuels Demand for Automotive Simulation Tech

India’s push to mandate Vehicle-to-Vehicle (V2V) and Vehicle-to-Everything (V2X) communication by October 2028 is driving automakers to adopt simulation technologies for testing and refining safety systems. With India reporting 1.83 lakh road fatalities in 2025, the urgency for advanced safety solutions has never been greater.

dSPACE India Solutions, a subsidiary of the German firm dSPACE, is at the forefront of this shift, providing advanced simulation tools to automakers and technology companies. These tools enable virtual testing of V2V and V2X systems, reducing the reliance on unsafe and impractical public road tests.

India’s V2V and V2X Mandate Spurs Simulation Tech Adoption

According to YourStory, India’s Ministry of Road Transport and Highways has proposed a mandate requiring Vehicle-to-Vehicle (V2V) and Vehicle-to-Everything (V2X) communication systems in new vehicles, with implementation targeted for October 2028. The mandate aims to reduce road fatalities by enabling vehicles to exchange real-time data on position, speed, and movement, allowing safety systems to alert drivers to potential collisions.

India’s road safety crisis—with 1.83 lakh fatalities reported in 2025, an increase of 6,000 from the previous year—has intensified the focus on advanced safety systems. However, testing these systems on public roads is considered impractical and unsafe due to the country’s chaotic traffic conditions. This has led automakers to adopt simulation technologies to virtually recreate real-world scenarios for testing and refinement.

dSPACE India Solutions Supports Automakers with Advanced Tools

dSPACE India Solutions, a subsidiary of the Germany-based dSPACE, is playing a pivotal role in supporting automakers and technology firms in India. The company entered the Indian market in 2009 through a partnership with DynaFusion and formally established its local operations as dSPACE India Solutions Private Limited in 2023. Today, it employs over 160 engineers and has generated nearly Rs 200 crore in local revenue.

The company provides advanced simulation tools, including Software-in-the-Loop (SIL) and Hardware-in-the-Loop (HIL) testing. SIL allows engineers to test control software in a virtual environment, while HIL integrates actual electronic control units into the simulation. These technologies enable automakers to refine their systems without relying solely on physical road tests.

AI and Partnerships Enhance Simulation Capabilities

To further strengthen its simulation platforms, dSPACE has partnered with companies like Anritsu and Safran Data Systems. Anritsu’s collaboration enables the simulation of 4G and 5G network conditions, while Safran Data Systems helps recreate satellite-navigation environments, including systems like GPS, GLONASS, and Galileo.

Artificial intelligence is being integrated into dSPACE’s development ecosystem to generate virtual electronic control-unit artifacts, create autonomous-driving scenarios, and manage large datasets. Tools like the NeuralNet Coder translate AI models into embedded C code, which can be deployed directly on vehicle hardware. This allows automakers to test thousands of edge cases, such as chaotic intersections or unusual road-user interactions, without physical testing.

While physical testing remains a component of automotive development, virtual testing is expected to reduce its necessity, lowering costs and accelerating development timelines.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

India’s push to mandate V2V and V2X communication by 2028 reflects a broader global shift toward leveraging technology to improve road safety. For founders and operators in the automotive, AI, or simulation sectors, this mandate presents a significant opportunity.

The reliance on virtual testing over physical road tests is a pragmatic response to India’s unique traffic conditions. Startups and tech firms can explore partnerships or develop tools that enhance simulation accuracy, reduce costs, or integrate AI-driven edge-case testing. The mandate’s deadline also creates urgency, making this a critical area for investment and innovation.

However, success will depend on collaboration between automakers, technology providers, and regulators to ensure standards are met and real-world safety outcomes improve. The move toward simulation-driven development could also set a precedent for other markets with similar challenges.

Key takeaways

• India’s V2V and V2X mandate, starting October 2028, aims to improve road safety by enabling real-time data exchange between vehicles.
• Simulation technologies are essential for testing these systems, as public road testing is impractical in India’s traffic conditions.
• dSPACE India Solutions is a key provider of simulation tools, including SIL and HIL technologies, to automakers and tech firms.
• AI is being used to generate edge cases and manage datasets, enhancing the robustness of automotive testing.
• India’s rising road fatalities highlight the urgency for advanced safety systems and innovative testing solutions.

FAQ

What is the purpose of India’s V2V and V2X mandate?

The mandate aims to improve road safety by requiring vehicles to exchange real-time data on position, speed, and movement. This enables connected safety systems to warn drivers of potential collisions and other hazards.

Why is simulation technology critical for V2V and V2X testing in India?

Public road testing is impractical and unsafe due to India’s chaotic traffic conditions. Simulation technologies allow automakers to recreate real-world scenarios virtually, ensuring robust testing without physical risks.

How is AI being used in automotive simulation?

AI is used to generate edge cases, such as chaotic intersections or unusual road-user interactions, and manage large datasets. It also helps translate AI models into embedded code for vehicle hardware, improving the efficiency and scope of virtual testing.

What role does dSPACE India Solutions play in this space?

dSPACE India Solutions provides advanced simulation tools, including Software-in-the-Loop (SIL) and Hardware-in-the-Loop (HIL) testing, to help automakers refine V2V and V2X systems. The company also leverages AI and partnerships with firms like Anritsu and Safran Data Systems to enhance its simulation capabilities.

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