The transition to electric vehicles has revolutionized the automotive industry, transforming cars from purely mechanical devices into sophisticated, software-driven machines.
Historically, an automaker’s competitive edge was determined by its ability to produce superior engines. Creating the world’s top 10 powertrains that delivered more horsepower, improved fuel efficiency, and met increasingly stringent emissions standards required extensive expertise. This, coupled with managing a complex supply chain of over 20,000 parts, created significant barriers to entry for newcomers in the industry.
Tesla’s Pioneering Features
The shift to electric vehicles, however, has lowered these barriers. Electric motors, already widely used across various industries, are more readily available. Similarly, batteries can be sourced from specialized manufacturers. As mechanical complexities decrease, the focus of automotive performance is shifting from engine prowess to innovative features and functionality. At the heart of this transformation lies the software that controls every aspect of the vehicle.
Cars are Like Smartphones
The emerging Software-Defined Vehicle (SDV) system mirrors the smartphone ecosystem. Unlike traditional vehicles where components were developed and assembled separately, SDVs operate on a unified operating system. This integration enables new user experiences through advanced infotainment systems and cutting-edge technologies such as autonomous driving.
In 2023, Hyundai Motor Company announced its commitment to SDV as a cornerstone of its future strategy, restructuring its organization to develop proprietary software platforms for vehicle operations. This trend extends beyond Hyundai, with most global automakers feeling the pressure to revolutionize their vehicle architectures and development processes. The electric vehicle revolution has irrevocably changed the automotive landscape, propelling cars beyond their traditional role as mere mechanical devices.
