Emergence Of Software-defined Vehicles

31st July 2025

EVENT OVERVIEW

Impact on Product Differentiation and Opportunities for Connectivity Enablers

Modern Passenger vehicle OEMs are shifting their focus towards flexible and upgradable platforms, characterised by software updates and upgrades. This trend is driven by the fundamental principle of de-coupling feature upgrades with model platform refreshes, thereby making hardware and software mutually independent. This means, OEMs today now have the option of standardising hardware platforms with the ability to introduce and unlock new features through a software patch insertion, opening new revenue generation opportunities. In this direction, collaborations between OEMs and software service providers range from hardware platform commonalities, software development, feature updates with the overall objective of making model year and generation changes obsolete and redundant.

 

While SDVs enhance interoperability by reducing development complexity, this is expected to significantly improve OEM collaborations and co-development of platforms across segments and applications. UNECE R155 and R156 regulations look at cybersecurity and Software Update Management Systems (SUMS) which have been made mandatory for new vehicles from 2022 and for all vehicles from 2024. Additionally, with consortia like AUTOSAR looking to standardise base software, tracking and updating is expected to become easier to achieve.

WHAT TO EXPECT

  • Evolution of passenger vehicle platforms from a features and configuration perspective
  • Interplay between hardware standardisation and software development
  • Integration of ADAS and AD capabilities within the larger SDV portfolio
  • Cybersecurity and threats – risk mitigation through security and validation protocols
  • Collaboration between legacy and new-age OEMs for new product and solution development 05 Evolution of the role of Tier 1 Suppliers in software and features co-development
  • Role of engineering and R&D service providers for accelerating time-to market for new products
  • Evolution of the role of Tier 1 Suppliers in software and features co-development

1. How will product development evolve from a manufacturing perspective, with hardware standardisation across segments and platforms?

a. Will this lead to a strong push towards Electric and Hybrid platforms across OEMs?

b. Will the role of dedicated / bespoke engineering and R&D service providers become enhanced?

c. How are OEMs likely to achieve customisation and personalisation objectives for customers?

2. How are new business models expected to drive revenue generation for OEMs as model-year relevance and refreshes lose significance?

a. How will OEMs position feature updates and upgrades from a revenue-generation standpoint?

b. How will OTA functionalities impact vehicle development and product differentiation?

c. Will asset-light models such as Subscription and Pay-as-you-Use drive warranty, insurance and resale value of vehicles?

3. How will Connectivity impact Software updates for rural and up-country markets?

a. Will SOTA updates be driven by connectivity and latency across regions?

b. What will be the new role of Telecom service operators and providers in vehicle connectivity and deployment of aftersales solutions and feature upgrades?

c. Will in-vehicle connectivity and revenue sharing become an integral part of vehicle platform development?