The connectivity of modern cars will allow you to improve them just by downloading applications for which you will pay as you do now for a mobile APP. With a simple update that will be downloaded directly to the vehicle and installed as it is now done on smartphones. Once you are done with this updates, your car will suddenly run faster, extend its electric range or integrate more infotainment systems, among many other extra services that you will access through a single payment or a subscription and without going through a workshop.
Electrification, new mobility, shared use, and all the transformations that the sector is undergoing, forces brands to invent new business channels that allow them to obtain benefits beyond the sale and repair of cars.
In addition, with the arrival of autonomous driving, the importance of the performance and dynamism of the vehicle will be definitively broken, which will take a backseat or tenth place with respect to elements such as the extra functions of infotainment and connectivity of the vehicle. This is where OTA (Over The Air) updates come into play.
Possibility of installing or updating software remotely
The possibility of installing or updating software remotely, simply by accessing it from the vehicle menu or with the brand’s application on the smartphone, allows brands to open important sources of income. So much so that, in December 2021, the CEO of Stellantis, Carlos Tavares , predicted entering an additional 20,000 million euros until 2030, thanks to the technologies associated with the connected vehicle.
The connection of the cars progresses at an extraordinary pace. At the end of this decade, almost all the vehicles that roll on our roads will have some type of connectivity system to communicate with other cars, with the environment and with the brand’s data center. Now they do it with 4G technology, but much sooner than later, it will be normal to use 5G networks, which will multiply data transmission, optimizing safety, infotainment and car connectivity.
What applications can I install in the car?
How could it be otherwise with Elon Musk at the helm, one of the first brands to use this to pay to improve the car with applications downloaded remotely was Tesla , who continues to promote this business in their cars. The Model S and Model X could boost their acceleration with a reprogramming of their ECU, and even extend their range by unlocking an unused portion of their battery pack. But not everything was focused on performance, as there was also a function to turn the car into a megaphone.
Now there are many brands that join this type of business, as we explained with the example of BMW , since their cars will have all the extras included as standard, but they will only work if you pay to ‘unlock’ them.
How does OTA work?
OTA (Over The Air) updates will allow you to use extras only when you need them, paying a temporary fee, much cheaper than if you paid all that this option would cost at once when buying the vehicle. For example, if installing the heated seats is 1,000 euros (not a real figure), but activating them by subscription during the winter months has a fee of 100 euros, as long as you sell or change the car within 10 years, Pay per use will be more profitable for you . And we must bear in mind that there will be less and less purchase of the car, and more forms of renting or leasing.
Another great advantage of subscription optimizations is that you can have a ‘full equip’ car at a much lower price and then only use the extra ones you really need by paying for an affordable subscription.
Autonomous driving will multiply the installation of applications
As cars increase the level of autonomous driving , the offer of applications and improvements through OTA services will multiply enormously, since it will no longer be necessary to be attentive to driving, and more infotainment services will be demanded to distract themselves during the routes. Hence, cars already mount giant screens such as the Hyperscreen of the Mercedes-Benz EQS, that of the Mustang Mach-E or that of Tesla themselves.
In these huge panels you will be able to see the contents of the pay television to which you are subscribed, view the information publications for which you pay monthly, play games , manage the applications that you have downloaded from the brand’s native platform, or simply use it as a ‘mirror’ of your mobile or PC screen to be able to work while you arrive at your destination. Possibilities that can probably only be enjoyed if you pay to ‘unlock’ them.
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