Article written by Christopher Ahn, US connected vehicle and electrification leader, Deloitte Consulting LLP, Platinum Sponsors of MOVE America 2024 at the Austin Convention Center, 24-25 September, Austin, TX. Get more exclusive insights from Deloitte at the event.
Electric vehicle adoption hasn’t yet met industry expectations, but the growing emergence of software-defined systems could help improve functionality—and boost momentum for EVs.
The cost of maintaining an electric vehicle is lower than internal-combustion engine (ICE) vehicles, which is the top reason people cite for wanting an EV, according to the 2024 Deloitte Global Automotive Consumer Study. But consumers remain concerned about driving range and insufficient charging infrastructure.
With advanced software, vehicles can manage the charging process, optimizing it for speed and battery health, which can extend battery life. The software is also continually updated to automatically find the cheapest or quickest charging options by analyzing electricity rates and grid demand in real-time. This kind of intelligent charging management not only saves money, but also creates a hassle-free fueling process.
State-of-the-art software and features tailored to consumer experiences offer another significant benefit. Imagine your car automatically increasing the suspension height because it knows you are approaching rough terrain or dynamically managing the tension in the steering wheel to stabilize turns in icy conditions. Traditionally, these vehicle aspects could only be upgraded by purchasing a new model or through aftermarket modifications. Now these performance updates are facilitated by software updates sent over the air, which allows consumers to personalize their vehicles to their individual mobility behaviors.
Shifting to a new mindset
The rise of software-defined vehicles presents a major opportunity for auto companies: the opportunity to sell to consumers no longer ends at the vehicle transaction. Instead, it extends throughout the vehicle’s life cycle, requiring ongoing support and updates.
This shift underscores the need for automakers and retailers to adapt their business models to incorporate both digital and traditional services. Examples include combining physical and digital service lanes as well as leveraging monetization strategies throughout a vehicle’s life cycle. Moreover, automakers must master the deployment of over-the-air (OTA) software updates. Excelling in this area is essential to continuously improve vehicle software, resolve issues and introduce new features, thus boosting the long-term value of vehicles.
In order to make these organizational changes, auto companies should focus on a top-down approach. A company’s board, executive leadership team, and shareholders need to adopt a software-centric strategic focus and prioritize the capital investments necessary to drive enterprise transformation and create industry advantage. Overall, automotive companies should rethink their role in the ecosystem and filter their strategies through the lens of a software company—not a traditional automaker.
Want to learn more about a software-driven future for the automotive industry? View our panel on the EV Stage on Day 1: ‘The Vehicle as a Connected Hub’ where we’ll discuss advanced technologies that transform vehicles into interconnected platforms. And get in the driver seat with our SDV demo in booth #419. For more details or to schedule a demo visit Deloitte at MOVE America 2024.
