Context. A majority of the regression testing techniques proposed by the research have not been adopted in industry. To increase adoption rates, we need to better understand the practitioners' perspectives on regression testing. Objective. This study aims at exploring the regression testing state of practice in the large-scale embedded software development. The study has two objectives, 1) to highlight the potential challenges in practice, and 2) to identify the industry-relevant research areas regarding regression testing. Method. We conducted a qualitative study in two large-scale embedded software development companies, where we carried out semi-structured interviews with representatives from five software testing teams. We did conduct the detailed review of the process documentation of the companies to complement/validate the findings of the interviews. Results. Mostly, the practitioners run regression testing with a selected scope, the selection of scope depends upon the size, complexity, and location of the change. Test cases are prioritized on the basis of risk and critical functionality. The practitioners rely on their knowledge and experience for the decision making regarding selection and prioritization of test cases. The companies are using both automated and manual regression testing, and mainly they rely on inhouse developed tools for test automation. The challenges identified in the companies are: time to test, information management, test suite maintenance, lack of communication, test selection/prioritization, lack of assessment, etc. The proposed improvements are in line with the identified challenges. Regression testing goals identified in this study are customer satisfaction, critical defect detection, confidence, effectiveness, efficiency, and controlled slip through of faults. Conclusions. Considering the current state of practice and identified challenges we conclude that there is a need to reconsider the regression test strategy in the Preprint submitted to Information and Software Technology November 29, 2018 companies. Researchers need to analyze the industry perspective while proposing new regression testing techniques. The industry-academia collaboration projects would be a good platform in this regard.