🛹Autowist Report 108

• 💼BRIEFING

  • Business Models of SDV

    • The Desperation: Turning to Ads

    • The Real Business Value: Ecosystems That Meet Cust …

    • Kia and Samsung: A Smarter Approach to SDVs

  • New updates coming to Android Auto (Link)

  • Stellantis Cancels Maserati’s $1.6B Investment, Je …

    • Key Points:

• ⚡ROUNDUP

• 🐦AUTO BUZZ

• 📈MARKET SNAPSHOT

💼BRIEFING

Top insights and analysis that is moving the needle in the automotive industry

Business Models of SDV

Software-Defined Vehicles (SDVs) have become a buzzword in the automotive industry, promising a future where software-generated revenue would become a significant profit driver for automakers. This trend was fueled by consulting firms and tech analysts, who painted a vision of cars evolving into smart, connected platforms that could continuously generate revenue through software updates, subscriptions, and digital services.

Believing in this future, OEMs drastically increased their R&D spending on software, aiming to position themselves as leaders in this new digital automotive world. The investments poured into in-house software teams, new tech subsidiaries, and platform development, often at the expense of traditional hardware improvements.

However, as automakers gained more experience in software development and understood real customer expectations, many began to realize that the projected revenue from software was not as high as anticipated. While some premium features and connected services could generate additional income, customers were not willing to pay for every digital feature inside their cars—especially when many of them had been standard in previous models.

The Desperation: Turning to Ads

Some automakers, in an attempt to monetize their digital platforms, have begun experimenting with advertising inside vehicles—a decision that has quickly backfired.

Recently, Jeep owners reported that persistent pop-up ads were appearing on their infotainment screens, urging them to purchase an extended warranty. The issue became widely criticized because the pop-ups were designed to return every time the car stopped, frustrating drivers. While Jeep later called this a “glitch” and claimed the message was only supposed to appear once, the damage was done.

The incident sparked a wider customer backlash, as many feared that in-car advertising could become a normal occurrence. Stellantis, Jeep’s parent company, has already set a goal to generate €20 billion from software services by 2030, raising concerns that aggressive digital monetization tactics could become a long-term strategy.

The idea of advertising in vehicles is fundamentally flawed. While companies like Google have built their entire business model around ads, this approach does not work for consumer electronics and premium products.

Imagine if Apple started showing ads on iPhones or MacBooks—consumers would outright reject the product. The seamless user experience is a core part of Apple’s ecosystem, and intrusive ads would erode the brand's trust. Whether in a smartphone or a car, unwanted pop-ups ruin the user experience and make the product feel cheap, regardless of the context.

The Real Business Value: Ecosystems That Meet Customer Needs

Instead of chasing quick software revenue through ads or unnecessary subscriptions, automakers should focus on building ecosystems that actually provide value to consumers. Apple is a perfect example of how this is done right.

Apple has created a highly integrated ecosystem where hardware, software, and services work together seamlessly. The iPhone, Mac, iPad, Apple Watch, and HomeKit all sync effortlessly, making Apple products more valuable as part of the larger ecosystem. Consumers don’t feel like they are being monetized unfairly—instead, they get an ecosystem that enhances their experience.

This approach could be far more sustainable for automakers than simply forcing advertisements onto car screens.

Kia and Samsung: A Smarter Approach to SDVs

One of the more realistic and customer-focused implementations of SDVs is Kia’s recent partnership with Samsung Electronics. Instead of trying to squeeze software revenue through ads, Kia is integrating its vehicles into Samsung’s SmartThings Pro IoT ecosystem, creating genuine value for business customers.

Through this partnership, Kia’s Purpose-Built Vehicles (PBVs) will feature Samsung’s SmartThings Pro IoT platform, allowing seamless wireless control of connected devices. This means:

• Businesses using Kia’s PBVs can integrate IoT-enabled appliances using a Plug & Play service.

• Business customers can configure automated routines based on destinations entered into the infotainment system, allowing their vehicle to act as part of their larger business operation.

• The partnership will initially target small business owners and self-employed professionals before expanding into more tailored IoT solutions for larger enterprises.

Rather than forcing consumers to watch ads, this approach enhances the functionality of the vehicle, making it an integral part of a business ecosystem—something that adds real value to the end-user.

New updates coming to Android Auto (Link)

• New Apps on Android Automotive: Google has launched "dozens of new apps" through its car-ready mobile apps program. These include entertainment apps like F1 TV, Plex, and NBC News, as well as games like Roblox and Farm Heroes Saga.

• Limited to Parked Mode: Just like video apps on Tesla, these apps will only work while the car is parked.

• Future Expansion to Android Auto: Google plans to bring this program to Android Auto, which currently relies on smartphones. It’s unclear if all apps from Android Automotive will make the transition.

• YouTube Finally Coming to Android Auto: An official YouTube app will land on Android Auto soon, but only for parked vehicles.

• More Advanced Than CarPlay? With Apple delaying CarPlay’s next-gen rollout, Google might be pulling ahead in automotive software.

Stellantis Cancels Maserati’s $1.6B Investment, Jeopardizing Its Future

The future of Maserati looks uncertain after Stellantis canceled a planned €1.5 billion ($1.6 billion) investment, putting several key electric models at risk, including the MC20 Folgore, Quattroporte, and Levante EVs.

Key Points:

• Sales Collapse: Maserati’s global sales fell by more than half, from 26,600 units in 2023 to just 11,300 in 2024. The brand lost €260 million ($271 million) last year.

• Electric Future in Doubt: Stellantis CFO Doug Ostermann confirmed that multiple unreleased projects will be scrapped, likely including the MC20 Folgore EV.

• Struggles in China & Electrification: Stellantis is re-evaluating Maserati’s product plans, citing slower-than-expected luxury EV adoption, especially in China.

• Union Pressure: Italy’s trade union FIM is demanding answers, calling Maserati’s situation “critical” and blaming marketing failures for the brand’s struggles. A meeting is scheduled for March 11.

• Uncertain Future Under New CEO: With Stellantis searching for a new CEO, Maserati could face the risk of being axed, as the company decides which of its 14 brands will survive.

⚡ROUNDUP

Key headlines shaping the auto industry this week

1. Tesla (TSLA) sales are still crashing in Europe in February (Link)

2. Tata Motors registered total sales of 79,344 units in February 2025 (Link)

3. BMW plans to commence pre-series production of Neue Klasse EVs in 2026 (Link)

4. EU gives automakers breathing room, slashes Tesla’s emission credit revenue (Link)

5. EU automakers demand more flexibility to avoid crippling BEV penalties (Link)

6. Trimble works with STMicroelectronics to deliver precise positioning solution for the automotive and IoT industries (Link)

7. Infineon to unveil new microcontroller technologies at embedded world 2025 (Link)

8. China mandates regulatory approvals for autonomous driving software upgrades (Link)

9. Geely Automobile posts 84% YoY hike in Feb. 2025 auto sales (Link)

10. HARMAN Showcases Next-Level ‘Consumer Experiences. Automotive Grade.’ Products at MWC 2025 (Link)

11. Maserati future models uncertain as Stellantis cancels 1.5 billion euros investment (Link)

12. Geely EX5 Preview (Link)

13. Why are car makers displaying ads on the touchscreen? (Link)

14. Google Announces New Apps and Games for Cars: What You Need To Know (Link)

15. Carlos Tavares Got $24 Million As Stellantis Crashed And Burned (Link)

16. Tariffs? Chinese vehicles are already being sold in the U.S. (Link)

17. Kia and Samsung partner to integrate SmartThings Pro into Kia PBVs (Link)

18. Dassault Systèmes and Volkswagen Group Implement the 3DEXPERIENCE Platform to Optimize Vehicle Development (Link)

19. Baidu, CATL forge partnership on digital intelligence, autonomous driving (Link)

🐦AUTO BUZZ

Top posts, tweets, and videos from the automotive industry

📈MARKET SNAPSHOT

This week’s key movers in the automotive stock market