South Korea’s Hyundai Motor Group revealed on Wednesday it will invest KRW 18 trillion ($12.60 billion) by 2030 in its transformation to a software defined future, Kallanish reports.
The investment will cover the creation of a global software centre and R&D headquarters to further strengthen software capabilities for the development of so-called software defined vehicles (SDVs). Under this global strategy, all models (EVs and ICE) under the group’s Hyundai, Kia, and Genesis brands will have over-the-air (OTA) software updates by 2025.
From next year, all newly launched vehicles will be updating their software remotely, expanding a service the group introduced in 2021. These models will also be able to receive Connected Car Services (CCS) and Feature on Demand (FoD) services.
The Korean carmaker expects to have 20 million vehicles subscribed to its CCS worldwide by 2025. By enabling the update and upgrade of car functions such as safety, convenience, connectivity, security, and driving performance, Hyundai Motor expects to develop a stable revenue stream. The constantly evolving mobility and software technologies are also expected to enhance the residual value of the vehicles.
“By transforming all vehicles to Software Defined Vehicles by 2025, Hyundai Motor Group will completely redefine the concept of the automobile and take the lead in ushering in a never-before-experienced era of mobility,” says Chung Kook Park, group’s president and head of R&D Division. “Creating visionary vehicles empowered with the ability to evolve through software will enable customers to keep their vehicles up to date with the latest features and technology long after they have left the factory.”
In addition, Hyundai Motor Group wants to develop a shared hardware and software platform for EVs to cut down mass-production processes. It says reducing vehicle complexity will further enhance the effectiveness of SDV technology.
The plan is to introduce vehicles in 2025 based on two new EV platforms – eM and eS – to be created under the group’s integrated modular architecture (IMA) system. The eM platform will be used for EVs across all segments, providing a 50% increase in driving range and supporting Level 3 or higher autonomous driving technology and OTA software updates.
The eS platform will serve as an EV skateboard exclusive for purpose built vehicles (PBVs), offering a flexible structure to meet demand from delivery, logistics and car-hailing sectors.
The innovative services and new mobility experiences promised by Hyundai Motor Group also include a new data platform with data generated throughout the vehicle’s entire life cycle.
“As we take these technological innovations from imagination to reality, Hyundai Motor Group will unlock the future potential of the car and open up new possibilities to rewrite the customer experience and deliver a new way of life, abundant with meaning and value,” concludes Park.
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