By Lee Min-hyung LAS VEGAS – A new mobility paradigm – driven by software-defined vehicles (SDV) – has swept across the entire automobile industry during this year’s CES tech fair, with global automakers moving to build their own identity amid the arrival of the new wave.
Until recently, automakers here and abroad focused on promoting hardware improvements in their electric vehicles (EV) at major global auto shows. The trend remains in place, but they were mesmerized by a bigger theme of artificial intelligence (AI) and software at the CES 2024.
The fresh movement comes as the global EV industry faces slowed growth amid a long-lasting electrification hype voiced by major market players.
But they have shown clear signs of ending the redundancy and setting up a new strategy, bracing for the AI-powered auto paradigm shift at the world’s largest IT exhibition.
Hyundai Motor took the center stage against the similar backdrop. The automaker did not display its new vehicles at its CES booth. Instead, it helped visitors understand in-vehicle structures powered by software. In a CES media event, the company delivered its renewed strategy of becoming a firm focusing on software-defined everything.
BMW teamed up with Amazon to equip its vehicle with an AI-driven personal assistant, Alexa. The German automaker plans to launch vehicles available for the service by the end of this year.
Overseas platform giants – such as Google and Microsoft – also partnered with auto players for a similar move. Google said its voice assistant will be operated in Nissan and Lincoln vehicles. Microsoft also reached a consensus with Honda for equipping its upcoming EV model with its AI assistant from 2026. Volkswagen Group is moving to embrace ChatGPT-based AI assistant, IDA, for its vehicles from the second quarter of this year.
Electronics and parts manufacturers have also drawn keen attention from visitors for their expansion into the in-vehicle AI system.
LG Innotek, which is best-known for its camera module business, showcased a concept model for a 4.3-meter-long driverless EV, in a show of willingness to make inroads into the AI-converged mobility business. The company also promoted its software system that can control and manage the quality of auto parts in real-time by collecting data during vehicle operation.
Officials from the auto and electronics industry said AI- and software-driven mobility is still a blue ocean, in that most players have so far focused on enhancing the functions of hardware.
“The rise of SDVs will reshape the vehicle industry paradigm, as smartphones did so,” an official from an automaker said. “But the market for smartphones is making little progress, as a number of players jumped into a tight rate for the development of both hardware and software of the mobile devices. But this is not the case for automobiles. Vehicles powered by software are still considered a relatively fresh notion within the industry.”
Samsung Electronics is also moving to diversify its revenue area by teaming up with Hyundai Motor Group’s software affiliate 42dot. Both firms agreed to partner with co-developing AI-based SDV platforms and system-on-chips for vehicles on the sidelines of the CES 2024.