The automotive industry is solidly in the fast lane when it comes to mobility. New cars are already more connected and smarter, and there is more change coming. The way cars are built is transforming, a development that was only accelerated by pandemic disruptions.
And like the moving assembly line before it, the next generation of connected cars is already causing an industry revolution, and one that is still only half completed. The last piece of the transition will be when manufacturers cease producing gasoline-driven vehicles.
Software-defined vehicles drive massive changes to hardware and also to how automotive manufacturers connect with their customers. It impacts the onboard computer and operating systems and also how telematic control units (TCUs) get data out of the car and into the cloud. Creating an efficient ecosystem around this movement of data will require integrated microservices, middleware, and APIs, and that is the roadmap for large-scale use of autonomous cars.
The new partners in the ecosystem
But while that is still years away, the transition has begun and is already having a significant impact on how manufacturers think about their partners. Traditional tier-one suppliers, those that provided items such as sealant and parts, are being joined by new partners emerging in unexpected areas. For example, Qualcomm, AI providers, and telecommunications companies like Verizon are now part of the ecosystem. In the past, on-the-go connection was a minor element but mobility will now be a major differentiator. Bolting an iPad to the center console of a luxury car is not acceptable. Instead, the connection needs to be part of the brand palette and enhance the experience. It cannot be an afterthought.
Rethinking the in-cabin experience will continue and this is really where automotive manufacturers will redefine their brand in the minds of drivers, passengers, or co-drivers. True mobility means, for example, that front-seat passengers will likely want their own touchscreens while back-seat capabilities will expand with additions such as a roll-down screen for video calls, rather than just screens in the head rest.
The idea of infotainment in the car will also shift as connectivity becomes more pervasive. Right now, satellite radio and maps are the two key features, but these will expand to make connections smoother. Drivers today, for example, often find it difficult to join a virtual meeting. They hold their phones, try to tap the connect button, then bypass the Bluetooth and the in-car speakers to use a headset instead of the microphone, only to find no one can hear them on the call. That has to change.
All these features are going to connect to the brand purpose and promise for every vehicle. In addition, there will be services added such as subscriptions and retail loyalty programs so drivers automatically collect points when they drive through a restaurant or store pick-up location.
Building a secure vehicle
Security procedures have been added to smartphones, and cars will soon follow. This is becoming more critical as the limitations of existing key-fob security are apparent and as drivers add more information to their car and connect it to their lives in the cloud. If a car holds credit-card information, it is not unreasonable to expect more security.
Smart mobility cars will need to implement multi-factor sign-in, for example, to start the vehicle or access its systems. This could use passwords, PINs, or fingerprint, face, or voice recognition.
Expanding dealer relationships
A shift to a car more driven by software and telecommunications will also change the relationship drivers have with a brand and dealership. Electric cars do not have spark plugs or oil to change, for example, so the service model and their overall role in the automotive ecosystem will evolve for dealerships.
OEMs understand the future is mobility and are restructuring their businesses to meet this reality. Based on the success of companies like Lucid and Tesla, build-to-order and direct-selling models make sense for EVs. But, even with that, dealers are not going away. Customers will be able to update their cars over-the-air and will not need the usual part replacements, but dealers will still ensure an excellent brand experience and support customer loyalty. OEMs want an ongoing relationship with their customers and dealers will continue to play a key role.
Continuing the mobility transition
Car manufacturers are evolving to meet the demands of customers. The pandemic has taught both OEMs and dealers that the old way of building and selling cars is coming to an end. A connected car and the mobility solutions it can deliver to drivers is where the industry is moving. Ultimately, it will end with fully autonomous cars, but they are still years away from being a reality. Until then, cars will continue to add mobility and solutions that integrate them into driver’s lives more.
Daniel Davenport
Principal, Connected Mobility, Automotive | Capgemini
A Connected Mobility Solutions Lead at Capgemini, Daniel is a passionate and experienced leader with extensive experience in the automotive industry. He works with a range of global clients and strategic partners to develop connected use cases that drive innovation, enhance the owner experience, and help create the next generation of automotive products and services. Daniel is an Educational Specialist (EdS) in Instructional Technology, holds a masters degree in Psychology and a B.A. in Philosophy