What is a "software-defined car"? Software-defined car strategies of major car companies

Automotive Electronic Control

Since 1968, automotive electronic control devices have been used in automobiles for the first time. Volkswagen's rear-wheel drive sedan, the 1600 LE/TLE, was equipped with an electronically controlled injection system called D-Jetronic produced by Bosch of Germany. Three years later, Nissan equipped the Bluebird U 1800 SSS-E with the L-Jetronic electronically controlled injection system also made by Bosch for the first time in Japan. Subsequently, in order to cope with more stringent emission regulations, it is necessary to accurately control the mixing ratio of fuel and air. The electronically controlled injection system gradually replaced the traditional carburetor (vaporizer) and became the mainstream fuel supply system for vehicles.

Japan's first mass-produced car equipped with an electronic fuel injection system - Nissan Bluebird U 1800 SSS-E

After more than 50 years of development, automotive electronic control devices are now entering a new stage. So far, the value of a car mainly depends on its basic functions, namely "driving, steering and parking". The driving part includes improving engine output power, reducing noise and improving ride comfort; the steering part includes improving handling stability; the parking part includes improving braking performance, etc. Most of these values ​​are provided by mechanical hardware.

However, the "once-in-a-century" automotive industry revolution currently taking place is bringing about major changes to this means of value creation. In short, the means of value creation is shifting from traditional hardware to software. This not only means that the electronic control of automobiles will develop faster than ever before, but it is also likely to have a significant impact on the business models of automakers, auto parts suppliers, and even surrounding industries.

The "New Four Modernizations" of Automobiles Begins

When discussing the concept of "software-defined cars", we cannot ignore the important symbol of the transformation of the automotive industry - the "four new transformations (CASE)" of the automobile industry. CASE is the acronym for Connected, Autonomous, Share & Services and Electric, representing networking, intelligence, sharing and electrification. This concept has become a key word leading the transformation in the automotive industry.

Why are the "new four modernizations" of automobiles so important? This is because this trend is completely subverting the value concept of traditional automobiles. First, "connectivity" emphasizes "connection", which denies the value of automobiles as "private spaces isolated from the outside world". Secondly, the autonomous driving technology in "intelligence" also denies the value of "driving pleasure" that car companies have always pursued, because autonomous driving eliminates the act of "driving" itself.

In addition, "sharing" also negates the "fun and value of ownership" that car companies have been cultivating. Similar to Mobility as a Service (MaaS), people no longer need to own vehicles, but can call them at any time according to their needs, which is evolving in a more convenient direction. Finally, the goal of "electrification" is to eliminate the engine. However, the engine has always been the core symbol of the car. The power, vibration and sound it generates shape the unique personality of each car company and create value.

The "New Four Modernizations" can be seen as a negation of all the values ​​that car companies have pursued so far. In other words, this is a "value revolution", which means that for traditional car companies, the experience and technical level they have accumulated so far will lose value. Therefore, in fact, no car company really wants to go through a "New Four Modernizations Revolution". So why is there such a huge wave of "New Four Modernizations"?

Strategic goal of becoming a "strong automobile nation"

China has clearly stated its strategic goal of becoming a "strong automobile country" that leads in both technology and brand by 2035. Considering that it is difficult to catch up with advanced countries such as Japan, the United States, and Europe in the field of traditional fuel vehicles, China has taken the lead in popularizing "new energy vehicles" centered on electric vehicles and "intelligent connected vehicles" equipped with autonomous driving technology, and has entered the global market based on the technological capabilities accumulated so far.

In terms of the popularity of electric vehicles, by 2022, China's pure electric vehicle sales have increased by 81.6% year-on-year to 5.365 million units, accounting for about 20% of total new car sales. Among the 7.8 million electric vehicle sales in the world, China's sales accounted for nearly 70%. In addition, China's power battery production also accounts for more than 60% of the global market share. By leading the "New Four Revolutions", China's automobile industry is steadily increasing its influence at home and abroad.

BYD, China's largest new energy vehicle manufacturer, begins to enter the global automobile market

IT giants aim for hegemony

The driving force behind CASE is also the giants of the IT industry. Among the three companies known as GAFA, Google, Amazon, Facebook (now renamed Meta) and Apple, except Facebook, all have planned the automotive industry as a new business market and are keenly observing the timing of entering the market.

For example, Google began developing autonomous driving technology in 2010 and is currently commercializing the world's first driverless autonomous taxi service in Phoenix, Arizona, and plans to expand its operating area to other cities. Amazon has also invested in Rivian, an American electric car company, and acquired Zoox, an American autonomous driving company, planning to enter the automotive field from delivery automation.

A driverless taxi vehicle from Zoox, an American self-driving company acquired by Amazon

Recently, Apple's entry into the field of self-driving cars has become a hot topic. It is said that South Korea's Hyundai Motor is likely to produce the "Apple Car" on a contract basis. The specific details of the car are not clear, but it is likely to be a luxury electric car that integrates self-driving technology. In addition, Apple is trying to provide value that other companies do not have in terms of user interface (UI), which is Apple's strength.

Today, American IT giants are trying to seize a huge share of the automotive market with various strategies. What they have in common is that they are more focused on building a new business model with software and networks at its core than manufacturing automotive hardware. In addition, major car companies are also eager to change their business models and prepare to compete with China and IT giants.

The outline of "software-defined cars" is becoming clearer

As competition in the field of next-generation automobile R&D to create value through software and networks continues to intensify, countries, regions and companies are joining in. China has set the goal of becoming a powerful automobile country, while Internet companies have positioned the automobile industry as a new market. So, what kind of next-generation automobile are countries and companies pursuing? The answer is "software-defined vehicle" (SDV).

The actual essence of "software-defined cars" is an area that companies are currently exploring, so there is no clear concept that can accurately describe "this is software-defined cars", but its outline has begun to emerge. As mentioned earlier, the value of cars in the past mainly came from hardware performance and engine output performance. The quality of a car is mainly evaluated from aspects such as the quick steering ability of the steering wheel, the rigidity of the body, the comfort of the driving experience, and the rapidity of the throttle response. Of course, these aspects will still be important values ​​in future cars, but the way they are presented may change significantly.

BMW iVISION Dee, a concept car exhibited by German BMW at CES 2023

Personalized settings that break the boundaries of hardware

In traditional cars, users can hardly change the car's steering behavior, driving comfort, acceleration when stepping on the accelerator, etc. At most, the acceleration characteristics when stepping on the accelerator can be switched between "normal" and "sport" modes. However, recent pure electric models provide users with more freedom in settings. For example, when the foot releases the accelerator, the user can set the level of brake energy recovery. In addition, future cars will be able to adjust the suspension hardness and braking effect through software according to the driver's habits and preferences. Alternatively, the artificial intelligence technology on board the car may also learn the driver's driving habits and automatically adjust the settings to ensure a better driving experience.

In the future, if the autonomous driving technology is upgraded, the system may adjust the steering wheel fast or slow during autonomous driving, as well as the driving mode of the car itself, according to the preferences of the passengers. In addition, cars will be able to download various applications in the app store, just like current smartphones.

Users can also download navigation systems according to their own preferences and use various applications in the car, such as music and video playback software, instrument wallpapers, and in-car games. Using software to select and expand car functions and break the traditional framework to adapt to the needs of each driver is called "super personalization." Today's smartphones can change wallpapers and adjust screen brightness according to their preferences. It can be said that the personalized settings of future cars will also be close to this feeling.