India’s engineering hubs for multinational companies are using artificial intelligence to accelerate product innovation and intellectual property generation, according to executives from Daimler Truck. The comments were made on Wednesday by Radhakrishnan Kodakkal, head of Daimler Truck Innovation Center India, during an interview with Reuters in Bengaluru.
Kodakkal said AI tools are helping global capability centers, known as GCCs, improve engineering processes and manage supply chain risks as manufacturers respond to shifting trade policies and geopolitical tensions. Reuters reported that India’s role is expanding beyond back-office support into core product development and research activities.
“The contribution of Indian GCCs on IP is in general increasing,” Radhakrishnan Kodakkal told Reuters. He said artificial intelligence would further accelerate innovation and engineering work across global companies operating in India.
India has become a major base for multinational technology and engineering operations over the past two decades. Companies in automotive, software, electronics, and manufacturing sectors have expanded research and development centers in cities such as Bengaluru, Hyderabad, Pune, and Chennai.
According to Reuters, Daimler Truck’s Bengaluru innovation center works across the full commercial vehicle lifecycle, including engineering concepts, simulations, software systems, connectivity technologies, and analytics. The center supports operations for the company’s global truck and transport business.
Kodakkal said manufacturers are using AI-driven data analysis to manage uncertainty in global supply chains. He cited copper sourcing for vehicle wiring harnesses as one example where companies are monitoring material composition and pricing more closely because of changing tariff structures and trade policies.
“One example I could say is predicting the raw material cost,” Kodakkal said. He added that engineering teams use AI and multivariate analysis to model fluctuations in steel and commodity prices.
Global manufacturers have faced supply disruptions since the COVID-19 pandemic, while geopolitical tensions and tariff disputes have increased pressure on sourcing networks. Reuters reported that many firms are restructuring supplier chains and increasing investment in digital monitoring systems to reduce exposure to volatility.
The shift is also changing hiring patterns in India’s technology sector. Kodakkal said competition for specialized talent is intensifying as companies seek workers with expertise in artificial intelligence, cybersecurity, and digital engineering systems.
“There was a lot of need around niche talents,” Kodakkal told Reuters, referring to demand for AI and cybersecurity specialists.
Daimler Truck said it is partnering with universities and expanding internal training programs to recruit and develop engineers with advanced digital skills. Reuters reported that the company is focusing on long-term workforce development to meet increasing demand for specialized expertise.
The comments from Daimler Truck executives come as global technology firms increase investment in India’s AI infrastructure and engineering capacity. Reuters reported on Tuesday that Microsoft plans to open its largest Indian data center by mid-2026 in Hyderabad as part of a broader expansion of AI services in the country. Microsoft India President Puneet Chandok told Reuters there was “massive demand” for cloud and AI tools in the Indian market.
Microsoft previously announced investments worth $17.5 billion in India, according to Reuters. The company said Indian operations are contributing to AI features used globally while demand for engineers continues to outpace supply.
Industry analysts say multinational companies increasingly view India as a strategic engineering and innovation location because of its large technical workforce and lower development costs compared with Western markets. Reuters reported that companies including Microsoft, Daimler Truck, and other international firms are expanding AI-related operations in the country as demand for advanced digital products rises worldwide.
The expansion of AI-driven engineering operations could strengthen India’s position in global technology supply chains and research networks. According to Reuters, companies are using Indian teams not only for software support but also for intellectual property development, product simulations, analytics, and advanced manufacturing technologies.
Background
India’s GCC sector has expanded rapidly over the last decade as multinational firms increased outsourcing and engineering operations in the country. Bengaluru remains the largest technology hub, hosting research centers for global automotive, software, and semiconductor companies.
The rise of generative AI has accelerated investment in cloud infrastructure, data centers, and digital engineering tools worldwide. Reuters reported that manufacturers and technology companies are integrating AI into supply chain planning, software systems, and industrial design processes.
Global supply chain disruptions after the pandemic and rising geopolitical tensions have also pushed companies to improve sourcing flexibility and cost forecasting systems. AI-driven analytics are increasingly being used to monitor commodity markets and supplier risks.
What Happens Next
Daimler Truck said its Bengaluru innovation center will continue expanding recruitment and partnerships with universities to support AI and digital engineering projects. Reuters reported that the company plans to strengthen internal training programs to address shortages in specialized technology talent.
Global technology firms are also expected to increase investment in Indian AI infrastructure during 2026. Microsoft’s Hyderabad data center is scheduled to become operational by mid-2026, according to Reuters, while multinational companies continue expanding engineering operations across India.
