Stellantis to invest 30 billion Euros towards OTA updates for cars

Global car giant Stellantis has said it will generate 20 billion Euros in revenue from software-enabled products and subscriptions in 2030, as it gears up for a new era of over-the-air (OTA) updates and artificial intelligence (AI).

• Stellantis hopes to introduce OTA updates to majority of cars by 2024
• Connected services business can provide features on demand
• Car giant to also launch usage-based insurance programme next year

The firm, which owns Abarth, Alfa Romeo, Citroen, DS Automobiles, Fiat, Jeep, Maserati, Peugeot and Vauxhall, announced today that it will invest over 30bn Euros by 2025 to execute the “software and electrification transformation”.

In the short term, by 2024, the majority of all new vehicles will be fully updatable over the air. Today, Stellantis has 12 million monetisable connected cars globally. By 2026, this is set to grow to 26 million vehicles and make 4bn Euros in revenue, which will further increase to 34 million vehicles and 20bn Euros in annual revenues by 2030.

The firm has identified five areas in which to grow its software and connected services business: services and subscriptions, features on demand, data as a service and fleet services, vehicle pricing and resale value and conquests and service retention and cross-selling.

Three new AI platforms announced

Stellantis has also announced three new AI technology platforms, to be deployed from 2024 – STLA Brain, STLA SmartCockpit and STLA AutoDrive.

STLA Brain is over-the-air capable with 30 modules, rather than today’s 10. Stellantis said it “breaks today’s bond between hardware and software generations, enabling software developers to create and update features and services quickly, without waiting for a new hardware launch”. These over-the-air updates will “dramatically reduce costs for both the customers and Stellantis, simplify maintenance for the user and sustain vehicle residual values,” added the company.

The second platform, STLA SmartCockpit, is intended to “seamlessly integrate with the digital lives of vehicle occupants to create a customisable third living space.” It is developed in partnership with Foxconn and delivers AI-based applications such as navigation, voice assistance, e-commerce marketplace and payment services.

Finally, STLA AutoDrive, developed in partnership with BMW, will offer level two, level two+ and level three autonomous driving capabilities and will be continuously upgraded through over-the-air updates.

The partnership with Foxconn aims to design new flexible semiconductors for both Stellantis and third-party customers. Stellantis said the four families of chips will cover over 80 percent of the firm’s micro-controller needs, helping “to greatly simplify the supply chain”. These chips are set to be in Stellantis vehicles by 2024.

The project will be a welcome development given the global shortage of semiconductors. While it will not help the current crisis, it will go some way to safeguard Stellantis from repeat issues in the future.

The company has also announced that it will launch a usage-based insurance programme next year, leveraging its data collection capabilities.

Stellantis’ future plans

“Our electrification and software strategies will support the shift to become a sustainable mobility tech company to lead the pack, leveraging the associated business growth with over-the-air features and services, and delivering the best experience to our customers,” said Stellantis boss Carlos Taveres.

“With the three all-new AI-powered technology platforms to arrive in 2024, we will leverage the speed and agility associated with the decoupling of hardware and software cycles.”

Talking about the tie-up with Foxconn, Tavares added, “Our software-defined transformation will be powered by great partners across industries and expertise. With Foxconn, we aim to create four new families of chips that will cover over 80 percent of our semiconductor needs, helping to significantly modernise our components, reduce complexity and simplify the supply chain. This will also boost our ability to innovate faster and build products and services at a rapid pace.”

Stellantis in India

Out of 14 brands that come under the umbrella of Stellantis, three of them have operations here in India - Jeep, Citroen and Maserati. Following the launch Compass facelift earlier this year, Jeep is now prepping for its next big launch in India - the Meridian 7-seater SUV - that will take on the likes of the Toyota Fortuner and MG Gloster. It is expected to launch sometime in 2022. Citroen already sells the C5 Aircross and is now readying to bring its first mass-market product to India - the C3 hatchback - next year.

What are your thoughts on Stellantis' huge investement towards software development? Let us know in the comments below. 

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