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SDVs hinge on cracking the monetisation challenge

If new software functions are no longer linked to vehicle sales, automakers must find another way of monetising them. By Megan Lampinen

Automotive companies generally agree that the industry is moving towards the age of the software-defined vehicle (SDV), but what they don’t agree on is what constitutes an SDV. Definitions vary, and in many cases, the understanding of this buzzword is vague. Some suggest a vehicle is software-defined when the majority of functions are realised through software. Others dismiss that as simply ‘software-enabled’. For software specialist Elektrobit, a vehicle becomes software-defined when the wider value proposition is provided through software.

Special report: Monetising digital vehicle services

“It’s only an SDV when you can change the experience of the vehicle through software,” says Elektrobit’s Moritz Neukirchner, Senior Director of Strategic Product Management for Software-Defined Vehicle. “The underlying value proposition is broad, but basically it provides software value to the end customer faster.”

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