Future drivers and passengers want to make the most of their trips. The features and functions that do this rely on software rather than hardware
Nio house in Berlin, which is modelled on a network of 100 similar establishments in China, offers evidence of a fundamental change. Here you can still acquire a car, but unlike a traditional dealership only a small fraction of the floorspace is taken up by vehicles. Nio sees itself as a lifestyle brand and tech firm. The “focus is on the user experience”, says Lihong Qin, its president. Using a Nio is about enjoying the journey and the community built around its brand.
Carmakers are appointing chief software officers, presenting strategy at “software days” and setting up software divisions. A new seven-storey building at the Mercedes plant in Sindelfingen, built at a cost of €200m, will house a third of the firm’s 3,000 software engineers. Cariad, the software unit created byin 2020, has a large site in Ingolstadt, not far away, for its 6,000 software employees. Stellantis aims to have 4,500 software engineers by 2024.s with a background in tech.
Carmakers need to strike deals with tech firms that are also eyeing their business as a potential source of new revenues. But do drivers want a proprietary system or rather something closer to what they are already familiar with from their phones? In 2022 Renault announced a deepening of its relationship with Google’s Android Automotive, which lets driver access phone features and apps, to speed up its digital transformation.
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