How is OTA changing the conventional understanding and thinking about repair, service, and upgrades? By Nick Power
In the last two years Tesla has made three ‘recalls’ in the US and China affecting nearly four million vehicles. However, what sets these ‘recalls’ apart is that the majority of affected vehicles were fixed without moving an inch.
The global software-defined vehicle market size is expected to hit around US$210.88bn by 2032 with upwards of 95% of new vehicles sold being ‘connected’. This surge in software-defined ‘connected’ vehicles (SDCV) is reshaping how we perceive vehicle maintenance, repair, and upgrades. In short: while mechanical faults require a trip to the dealership or garage, over-the-air (OTA) software updates seamlessly address safety and performance issues without inconveniencing the owners.
Research by Accenture indicates that 40% of buyers are willing to switch their brand loyalty, primarily driven by the presence and quality of connectivity features in the products they consider. This anticipates a future where software, not hardware, becomes the core of vehicle functionality. So, how is the conventional understanding and thinking about repair, service, and upgrades changing for millions of consumers and the OEMs who sell to them?
The term ‘recall’ might soon be insufficient to encompass the diverse maintenance strategies for modern vehicles
In a world where software keeps getting updates, the term ‘recall’ needs a rethink. As vehicles depend more on software, it’s crucial to differentiate between traditional recalls and digital updates. This shift means less reliance on old-school dealer visits. Instead, it reflects a change in how people expect things to work—embracing easy, remote solutions that fit busy lives.
The growing use of OTA updates isn’t just about tech; it’s part of a bigger change. It shows how vehicle maintenance is adapting, becoming more like the simple, automated updates consumers are used to in other tech areas. Essentially, this shift in language and practice recognises that software updates are influencing the future of automotive maintenance. It emphasises the manufacturer’s ability to address issues quickly and efficiently, minimising driver inconvenience.
This change in the way cars work is great news for buyers. It means the vehicle can get the latest features all the time. The majority of EV buyers expect a greater reliance on connectivity solutions in the future. Car manufacturers can now use OTA updates to improve a vehicle’s performance after it has been purchased. This goes beyond mere gadgetry and includes aspects of safety, comfort, and overall usability. Each update increases the vehicle’s value. This is not simply a matter of consumer preference, it is a strategic decision. According to McKinsey, 40% of buyers are willing to switch their brand loyalty, primarily driven by the presence and quality of connectivity features in the products. Continuous improvements help lure customers from other brands and build customer satisfaction and loyalty. The emphasis shifts from brand loyalty to providing a vehicle that consistently aligns with consumer preferences, enhances the overall driving experience and helps OEMs win in a competitive market.
Connectivity goes beyond OTA updates; it’s crucial for real-time data, analytics and performance monitoring. OEMs must establish reliable cross-border connectivity to ensure a consistent customer experience and fully unlock the potential of SDCVs.
However, tackling connectivity challenges is no simple task. Manufacturers must address these challenges to deliver a consistent and deeper customer experience, aligning with the expectations of a rapidly growing market of connected car users. The term ‘recall’ might soon be insufficient to encompass the diverse maintenance strategies for modern vehicles. As software takes the centre stage in vehicle functionality, embracing connectivity and understanding its challenges becomes pivotal for manufacturers to deliver on promises and build trust with consumers.
The opinions expressed here are those of the author and do not necessarily reflect the positions of Automotive World Ltd.
Nick Power is Chief Technology Officer at Cubic Telecom
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