Hyundai Kia & its new Software-Defined Vehicle Model: Cars will soon be App-stores on Wheels

Hyundai Kia has recently been very active and always ready to invest in new technologies. This week, Hyundai Kia announced that it will invest 18 trillion Won (roughly 10,000 Crore) in developing 'software-defined vehicles'.

► Hyundai Kia has announced the software-defined vehicles with an investment of 18 trillion Won.

► A new-gen digital heart for future cars.

► Smart services herald cars as four-wheeled credit card

Hyundai Kia made a huge announcement this week, stating that it will invest an unprecedented 18 trillion won (10,000 Crore) this decade in developing 'software-defined vehicles.'

It's a significant investment and a declaration of intent; if the Koreans can replicate their leapfrog moment in electrification and spend large to overcome the competition and claim leadership in digital innovation, it might provide a decisive competitive edge.

Wait.... What are Software-Defined Vehicles?

Hyundai Kia's label is, in some ways, a Ronseal description. We've all heard that software is increasingly defining modern automobiles. From BMW's iDrive and Tesla's infotainment to Apple CarPlay and Volvo's Android OS, the digital heart of nearly all current cars now determines a big part of their showroom appeal.

But if you think the navigation, voice control, and networking we've seen thus far are clever, wait till you see what's next. The Koreans revealed this week that the next generation of Hyundai, Kia, and Genesis models, as well as commercial vehicles, will increasingly use standardized components.

It begins with a standardized set of electric car components, then adds the recently disclosed software layer, data capabilities fed by open APIs accessible to third parties, and new mobility services. This commonality simplifies production by allowing physical features such as cruise control to be integrated by the manufacturer and then turned on or off by the customer over the life of the vehicle.

To fulfill this, by the mid-decade, all new Hyundai Kia cars will be fitted with the following features:- The introduction of the Connected Car Operating System (ccOS), which was developed in collaboration with AI expert Nvidia to provide personalized services (your car books your dinner, reserves a taxi or parking spot, etc) with the ability to drive autonomously- Transition to next-generation data processing, which promises 'data at blazing rates.'- By 2025, all new models will receive over-the-air software updates, ensuring that all vehicles are always up to date.- By 2025, the business expects to have 20 million vehicles registered for its Connected Car Services.- Establishment of a new Global Software Center to lead 'software-defined mobility devices and solutions, leapfrogging the automobile market to penetrate the mobility and logistics markets'.

That's a lot of Jargon, eh? But, what does it actually means?

All manufacturers are competing for the lead in digital services. Hyundai Kia is forming platform alliances with the hotel, leisure, and entertainment titans in order to create "an open ecosystem and deliver a paradigm shift in mobility." The engineers at the group see a future in which your automobile can reserve parking ahead of time and even a robotaxi to drive you to your destination.

Given that Hyundai Kia is aggressively investing in Advanced Air Mobility (AAM) flying automobiles, this isn't cloud cuckoo land posturing. 'Surpassing the vehicle market' even implies that the era of the private car may be coming to an end. In this profoundly disrupted new technological landscape, who would bet against Hyundai Kia?

Is this the future? A new Business Model for New Age - The Hyundai Kia Software-Defined Vehicles

Hyundai Kia has openly discussed charging for these new services. BMW has already come under fire for charging consumers to improve on-board equipment, such as activating dormant heated seats. They aren't alone.

Micropayments are being planned by the Volkswagen Group, French automakers, and now Koreans to enable new digital services. 'Continuously upgradeable software will provide various, stable revenue sources while providing fresh functionality and features to keep customers' vehicles up to date,' Hyundai-Kia promises. It has confirmed Feature On Demand services beginning in 2023 but has refused to tell CAR which features would be available or how much they will cost.

It makes a lot of sense for struggling automakers in a subscription-based world. Monthly payments on vehicles with constantly updated digital hearts indicate that revenue streams will continue well into a car's dotage. It's a significant shift as the emphasis switches from the first purchase to continuous engagement with users.

'Hyundai Motor Group has revealed the technical concepts, strategies, and future scenarios connected to software-defined vehicles that will underpin the core of future mobility,' said Chung Kook Park, Hyundai's president and R&D head. 'Our comprehensive approach will enable Hyundai Motor Group to lead the mobility paradigm transition.' Hyundai Motor Group will unlock the car's future potential as we bring these technological advances from concept to reality.'