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SDV

These days, many mobility companies are showing a great interest in SDV (Self-Defined Vehicle). At CES 2024, Hyundai Motor Company announced SDx, emphasizing that all mobility solutions and services are becoming automated, autonomous, and continuously connected.

Definition of SDV

SDV is defined as a “vehicle whose functions are controlled or determined by software.” The ultimate goal of SDV is autonomous driving. Through this, both OEM (Original Equipment Manufacturer) companies and customers can achieve mutual benefits. OEMs can create a variety of business models through SDV, while customers receive better services from these companies. The benefits are defined as follows:

OEM – Various Business Models

1. Remote system development can reduce labor costs.

2. A variety of subscription services can create a stable financial flow.

3. It can expand into new areas with entertainment like games and virtual reality.

Various app developments are possible through the vehicle’s OS, which can meet customers’ needs.

Customer – Better Service

1. If there’s a problem with the vehicle, it can be resolved through a software upgrade without the need to visit a repair shop.

2. Endless entertainment services are available, which can alleviate boredom during long trips.

I see SDV as a smartphone on vehicle. Just as smartphones have opened up a new world for customers, SDV will also provide us with new experiences.

*Implication on SDV

With gaming, sound systems, car seats, spatial design, IT, cloud computing, and companies capable of offering services optimized for individual customers, it seems that OEM companies will collaborate with a variety of firms. Customers, upon the commercialization of SDVs, will end up purchasing cars from the OEM company that best suits their needs. In the future, companies that provide better services inside the vehicle rather than the car itself will occupy a higher market share. The future will see an increase in mobility that signifies not just a car but a personal space.

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