Mobileye Leverages DMS and Parking Consolidation to Drive Surround ADAS and L2+ Business, with Implications for Standalone Parking Tier Ones and DMS Suppliers

In February 2026, Mobileye announced that Indian Original Equipment Manufacturer (OEM) Mahindra & Mahindra will equip Mobileye’s Surround ADAS and Level 2+ Supervision systems from 2027. India’s Advanced Driver-Assistance Systems (ADAS) market remains in a nascent phase, but it is set for rapid growth driven by Bharat NCAP’s ADAS testing protocols, and it is therefore unsurprising that Mobileye, by some measures the default active safety problem solver for automakers globally, should be positioning itself in this growth market as other regions begin to saturate. However, this example of relatively early ADAS implementation in India also represents a key innovation for ADAS globally, as Mobileye leverages the EyeQ6 processor to deliver automated parking features and driver monitoring functions alongside its core obstacle detection and collision avoidance features. The announcement by Mobileye emphasized the value of this to Mahindra & Mahindra, integrating parking and Driver Monitoring System (DMS) functions that could have required multiple additional Electronic Control Units (ECUs) into a single ECU, and thereby “supporting Mahindra’s architecture-efficiency goals.”

On the back of similar “ADAS + Parking” deals announced by Mobileye with the VW Group and an anonymous U.S. OEM, there is now clear momentum to consolidate ADAS, with implications for suppliers of standalone systems.

With the legacy automotive Electrical/Electronic (E/E) architecture infamous for its bloat and needless duplication, it is not surprising that three systems united by their use of machine vision would be ripe for consolidation into a single ECU. Moreover, the typical camera sensor configuration for smart parking, once consolidated with the ADAS domain controller, opens opportunities for a robust Level 2 (L2) navigation on pilot to be layered on top of conventional active safety ADAS, enabling Mobileye to simultaneously position cost efficiencies and weight reduction alongside a consumer value boost.

In earlier years, many industry observers anticipated that E/E consolidation would coincide with greater OEM ownership and in-housing of the enabling technology stack for Autonomous Vehicles (AVs), Electric Vehicles (EVs), and Software-Defined Vehicles (SDVs), envisioning a future in which an OEM, taking control of software development in ADAS, parking, and DMS would have taken the lead in rationalizing its sensor suite and ADAS compute to maximize efficiencies. However, the Mobileye/Mahindra & Mahindra deal demonstrates that this transformation can also be supplier-driven, representing an important opportunity for all AV platform developers to scale down into the active safety business to drive volume, just as they did with Level 2+.

While the Level 2+ strategy was built around taking features from the world of highly automated driving and deploying them in the context of regulatory reality and, by extension, driver supervision, Surround ADAS depends on leveraging system-level understanding of autonomous driving architectures to deliver E/E efficiencies.

The expansion of autonomous driving system suppliers “downward” into the active safety space represents a critical disruptive threat to standalone system suppliers in the face of the efficiency gains and performance gains that an AV-informed, consolidated system can deliver. In the Mobileye/Mahindra & Mahindra example, standalone parking and DMS suppliers are the most clearly impacted, requiring vendors in these spaces to consider proactively how they might move to defend their market position.

• DMS Suppliers: The DMS software space is already undergoing a period of consolidation, with a busy market seeing multiple exits through Tier One acquisitions. DMS software developers must anticipate the interior/exterior sensor fusion capabilities that Mobileye is likely to position with OEMs, and work proactively through partnerships to establish comparable offerings in conjunction with alternative exterior ADAS leaders. Similarly, DMS suppliers should lean into their infotainment-oriented strengths to deliver differentiated cabin experiences for the OEM, and demonstrate efficiencies that can be delivered through integration into digital cockpit silicon as a clear alternative for cost reduction. Key suppliers that must move to consolidate their position include Seeing Machines, SmartEye, and Tobii Autosense.
• Parking: Parking Tier One suppliers must recognize that the writing is on the wall for standalone parking systems, with the use of single-purpose sensors, compute, and networking proving unsustainable in a market where cost efficiencies are paramount for OEMs. However, parking is about more than hardware, and Tier One suppliers experienced in parking assistance should look to position their parking software expertise in partnership with AV suppliers to retain their foothold in the parking space, as part of a broader strategy to provide manufacturing, integration, and validation support to these same AV suppliers. A good example of this trend is the partnership between Valeo and Qualcomm announced in September 2025, which set out how Qualcomm’s Snapdragon Ride Pilot solutions would be complemented by “Valeo’s expertise in hardware and software including automatic parking software algorithms, sensors, ECU systems, its integration and validation.”

When suppliers of standalone systems find their positions threatened by consolidated platforms that yield efficiency and performance gains, the best response is a partnership, proactively working with best-in-class providers of other threatened systems to deliver a credible alternative to automakers.