Executive View: What the software defined vehicle means for dealerships

The exciting selling points of software defined vehicles  will enable franchised dealerships to sell the experience as much as the car in the future, writes Yasmine King, vice president of automotive cabin experience, Analog Devices.

Gone are the days when mechanical features such as horsepower were the differentiating factors for people. Now, the pull from customers is on factors such as personalized, immersive, safer, and more sustainable mobility experiences.

But what does this mean for dealers? It means the cars coming onto the market are becoming powerful, adaptable platforms capable of delivering features and experiences that were once unimaginable. Software defined vehicles (SDVs) leverage real-time data processing to become smarter and more intuitive and offer the kind of cutting-edge features that will draw customers to dealerships.

The hyper-personalisation opportunity - A selling point that can’t be ignored

We are entering a new era where vehicles are not just modes of transportation but personalized, immersive spaces that cater to the driver and passengers in ways never before seen. Software-defined vehicles (SDVs) are at the heart of this transformation, allowing automakers to create smarter, safer, and more comfortable vehicle cabins.

Think about the marketing potential: offering vehicles that learn driver preferences, provide tailored entertainment, and even adjust the environment for optimal comfort. This isn't just about selling a car, it's now about selling a bespoke experience.

With SDVs, automotive ecosystems are expanding, and new players - from big data companies to health-tech innovators- are entering the scene. The potential for these vehicles to evolve into highly personalized environments is vast, shaping the future of mobility.

Health, wellness, and cutting-edge technology

To win over today's savvy customers, functionality, comfort, safety, and entertainment need to be top-tier. Cars, once viewed as single-use tools simply for getting from A to B, are now evolving into partnerships that can significantly enhance our quality of life.

Imagine showcasing vehicles with in-cabin biometric sensors that can monitor vital signs like heart rate and stress. These features could allow the car to proactively adjust the environment - changing the temperature, playing calming music, or even suggesting breaks on long journeys. While it might sound futuristic, these are the kinds of differentiators that will capture attention and drive sales. Take the evolution of the smartphone - features once considered luxuries are now essential expectations.

To deliver these advanced experiences, today's vehicles are packed with more sensors, displays, and processing power than ever before. By 2030, the automotive market is expected to grow to approximately $80 billion, more than doubling in size from its value in 2019 at $31 billion. A significant amount of this growth is driven by vehicle connectivity from the likes of in-car payments, music streaming, and enhanced safety features like Advanced Driver Assistance Systems (ADAS) and vehicle-to-vehicle communication.

This demand for seamless connectivity is crucial. Customers expect their vehicles to integrate effortlessly with their digital lives - smartphones, wearables, and smart home systems. By 2025, vehicles will essentially become extensions of customers’ digital ecosystems, offering real-time data sharing and a consistent user experience.

The ‘Intelligent Nervous System’ - Selling the future of driving

The sheer volume of technology in these vehicles requires sophisticated real-time data processing to ensure everything works flawlessly. Innovations in semiconductors are making this possible, creating what we at ADI call an ‘Intelligent Nervous System’ for the car – a system that senses, connects, and makes quick decisions to deliver superior outcomes.

For car dealers, this translates to selling vehicles that are not just technologically advanced but also incredibly responsive, safe, and adaptable. It's about offering a driving experience that feels intuitive and personalized.

Software as the new differentiator on your lot

The shift towards SDVs means that software is becoming a major differentiator between car models. Manufacturers are leveraging robust hardware platforms to offer unique features and experiences through software updates.

This presents a unique selling proposition for dealerships to be able to highlight the evolving capabilities of the vehicles they sell, emphasizing the potential for future updates and added features that keep the car fresh and relevant long after the initial purchase.

The automotive industry is undergoing a profound transformation, and SDVs are at the heart of it. These vehicles are no longer just modes of transport; they are becoming integrated parts of our digital lives, offering connectivity, health features, and personalized experiences.

This shift presents an exciting opportunity for car dealers. By understanding and effectively communicating the benefits of SDVs - their adaptability, advanced features, and seamless integration - dealerships can attract a new generation of tech-savvy buyers and position their business at the forefront of the automotive revolution.

Author: Yasmine King, vice president of automotive cabin experience, Analog Devices