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World of Software > News > Software that is now central to the competitiveness of car manufacturers, shows report
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Software that is now central to the competitiveness of car manufacturers, shows report

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Last updated: 2025/09/12 at 1:24 AM
News Room Published 12 September 2025
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Software has shifted from a support function to the basis of the long -term competitiveness for car manufacturers.

That is one of the most important collection restaurants of a new Capgemini study. The consultancy showed that 87 percent of the respondents of a recent study mentioned software as the largest source of benefit compared to rivals in the next five years.

A recent example of this is the first software -defined vehicle from BMW, the IX3, of which CEO Oliver Zipse says it starts a new era for the automaker because it “strikes a perfect harmony between hardware and software”.

The IX3 Four “SuperBrains”, which are high-performance computers that bundle their processing power for driving dynamics, automated driving, infotainment and basic and comfort-improving functions.

Register for the Automotive News Europe Focus on Technology Weekly newsletter and looks at progress in all aspects of the vehicle, including performance, autonomous driving, batteries and more.

Almost all automotive managers (92 percent) investigated by Capgemini said they believe that every car maker will evolve to a software company to compete in the age of software -defined vehicle.

The report comes as legacy car manufacturers, such as BMW and Volkswagen, software architectures of the next generation of debut at the IAA Munich-Autoshow, where they are dealing with fierce competition from digital car manufacturers from China.

While the old car manufacturers have difficulty offering to offer extensive and competitive digital architectures, Zipse promised that the Neue Class represented in the coming years ‘a huge leap that the entire brand will form’.

The Capgemini report emphasized a decisive pivot point to software-driven mobility (SDM) as consumer expectations for connected, continuously updated digital services reform the value chain of the car.

More than eight in ten (81 percent) of the organizations investigated said that software-defined products and services will not only become physical vehicles-Hun core value proposition. More than 60 percent expect their strategies to influence most of their brands within five years.

Central to these efforts is the creation of uniform software platforms, where 83 percent of car manufacturers view such platforms as an important element of their strategy. Eighty percent emphasizes the importance of special software units to speed up the development of functions.

The survey also pointed to a growing momentum in the direction of sovereign software options, in which 94 percent of companies agree that this is crucial to check.

The payment is already visible, with approximately 80 percent of the respondents reporting cost reductions of software initiatives – whether they expect them to see the benefits soon.

Despite strong ambitions, only 14 percent say they have scaled an SDM -USE case in their organizations, and less than half went beyond half.

Legacy architectures remain a drag on progress: only 10 percent of companies have successfully disconnected software from hardware, although 27 percent test the approach.

Organizational change is also inevitable, with 86 percent of companies expecting SDM strategies to reform their operational models and 91 percent predicts an impact on the workforce.

Although it is expected that tools and processes will also undergo important shifts, the survey has been shown that obstacles to change are considerable.

For example, 92 percent report conflicting requirements for functions, 91 percent mention problems in complying with safety and cyber security standards and 94 percent are confronted with talent shortages in the midst of severe competition from both the technical and the automotive sector.

Jean-Marie Lapeyre, Chief Technology and Innovation Officer, Global Automotive Industry at Capgemini, said that the automotive industry is about mechanical engineering to software-driven innovation.

“Although most organizations see software as the key to future competitiveness, Legacy systems and fragmented architectures still hinder progress,” he said in a statement.

From the perspective of Lapeyre, delivering agile, safe, conforming software to a scale requires a reconsideration of organizational models, tools and talent.

“Companies that treat software as centrally in their company, standardize general functions and retain control of differentiators, can unlock new income and resilience in the long term,” he said.

The survey emphasized the threat of digital rivals-in particular Chinese car manufacturers that software-first models have adopted. Their collaborative, standardized, user -oriented strategies make faster cycles and stronger ecosystem integration possible, making a pace that Legacy Automaker has difficulty matching.

The shift to software-centric architectures is already underway, where car manufacturers move to chip-to-cloud systems that offer high processing and low latency.

These systems are designed to support frequent updates and AI-driven functions. By 2030, two -thirds of the vehicles are expected to support full updates over the air, an increase of only 28 percent today.

The Capgemini report indicated that cyber security remains a highest care: implement or plan nine out of 10 organizations to use AI-driven OTA patches to reduce risks, while almost 75 percent concentrates on ai-driven threat detection.

Partnerships are another determining trend, in which about 40 percent of car manufacturers already work with hyperscalers for cloud and operating system options, while 84 percent diversify the supply chains in the direction of markets such as India, Vietnam and Oosteuropa.

In a recent interview with Automotive News Europe Audi CEO Gernot Döllner, the partnership of the parent company Volkswagen Group emphasized with Rivian to provide a “central computer zonal architecture” for vehicles in different brands.

In November 2024, BMW and Tata Technologies formed a 50-50 joint venture, BMW TechWorks India, devoted to the development of software exclusively for BMW, with thousands of employees who are expected to work in the India cities Pune, Bangalore and Chennai towards the end of this year.

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