The FH Aero Electric stands out with a new e-axle setup that integrates dual motors and a six-speed gearbox directly into the rear axle. This clever packaging frees up space for larger battery packs, enabling the extended range. It also supports megawatt charging (MCS) at up to 700kW, allowing a 20–80% top-up in around 50 minutes—perfectly timed with mandatory rest breaks in Europe. The truck can handle a gross combination weight of 48 tonnes and a payload of up to 28 tonnes.

Meanwhile, the next-gen FH, FM and FMX Electric trucks get a new dual-motor drivetrain paired with an eight-speed purpose-built gearbox, delivering up to 540kW. A key highlight is the integrated gearbox power take-off, enabling the truck to operate auxiliary equipment like concrete mixers or refuse units while on the move.

ALSO READ: Volvo Trucks North America Starts Production of New VNR Regional Hauler

These models push capability even further, supporting a GCW of up to 65 tonnes. Across both lineups, Volvo has introduced new powershift gearboxes aimed at reducing noise and vibration, enhancing driver comfort on long hauls.

A key highlight is the introduction of steer-by-wire, a first for a series-production model from a German automaker. The updated EQS also benefits from 800-volt architecture, enabling ultra-fast 350kW DC charging that can add up to 320km of range in just 10 minutes.

Under the skin, Mercedes has developed new in-house electric drive units paired with a two-speed rear gearbox. The 122kWh battery features advanced silicon oxide-graphite anodes, offering around 3% more energy within the same footprint. Recuperation power has also been boosted to 385kW, improving overall efficiency.

ALSO READ: Mercedes-Benz Unveils Electric VLE Grand Limousine with 700 km Range

Future-ready tech includes bidirectional charging, with vehicle-to-grid (V2G) and vehicle-to-home (V2H) functionality set to arrive via an over-the-air update post-launch.

Inside, the new Mercedes-Benz Operating System (MB.OS) integrates all vehicle functions and supports continuous OTA updates. The MBUX Virtual Assistant, powered by AI from Microsoft, enables more natural, multi-step voice interactions via an animated avatar. Parking tech has also improved, with MB.DRIVE PARKING ASSIST now supporting diagonal parking at speeds of up to 5km/h.

The lineup now includes a new entry-level EQS 400 variant, producing 270kW with a 112kWh battery. Pricing in Germany starts at €94,403 (approx. $108,500) including VAT.

At its heart is the familiar 4.0-litre naturally aspirated flat-six from the GT3, producing 375kW (510PS) and screaming all the way to 9,000rpm. Borrowing revised cylinder heads and aggressive camshafts from the GT3 RS, it promises sharper high-rev response. Performance remains blistering, with 0–100km/h coming up in 3.9 seconds and a top speed of 313km/h.

The GT3 S/C leans heavily on lightweight engineering. It uses carbon fibre panels from the 911 S/T, magnesium centre-lock wheels, and a magnesium-framed soft top, keeping kerb weight to 1,497kg. That’s just around 30kg heavier than the previous-gen 911 Speedster. Porsche Carbon Ceramic Brakes come standard.

ALSO READ: Porsche Unveils Cayenne S Electric with 653 km Range

The fully automatic roof can open or close in about 12 seconds at speeds of up to 50km/h, while magnesium ribs help maintain a sleek coupé-like silhouette when shut.

For those wanting more individuality, Porsche Exclusive Manufaktur offers an optional Street Style Package with unique graphics and bespoke interior detailing.

Unlike many special 911s, the GT3 S/C isn’t a limited-run model and is now available to order.

The five-door hatch is powered by a rear-mounted electric motor producing 85kW and 150Nm, paired with a 39.4kWh lithium iron phosphate (LFP) battery. It delivers a claimed WLTP range of up to 325km, making it suitable for daily urban commutes.

Charging is fairly competitive, with DC fast charging of up to 70kW enabling a 30–80% top-up in around 25 minutes. A full AC charge (10–100%) takes approximately 6.5 hours. The E2 also supports vehicle-to-load (V2L), adding extra versatility.

Built on a dedicated EV platform, the E2 offers a 2,650mm wheelbase, translating into decent cabin space. Boot capacity stands at 375 litres, expandable to 1,320 litres, along with a 70-litre front trunk.

ALSO READ: BMW iX3 LWB India Launch Confirmed for 2027

Inside, both variants get a 14.6-inch touchscreen infotainment system and an 8.8-inch digital driver display. The Apex trim adds more premium touches like 16-inch alloys, vegan leather seats, wireless charging, and a 360-degree camera with a transparent chassis view. It also packs a full ADAS suite including adaptive cruise control, automatic emergency braking, and lane departure warning.

Geely backs the E2 with an eight-year/200,000km battery warranty and currently operates 32 dealerships in the country, with plans to expand to 40 by 2026.

The first delivery took place in Chennai and coincided with the inauguration of Renault’s new ‘new’R urban retail store on Mount Road. The keys to the first Duster were handed over by François Provost and Stephane Deblaise to a customer in the city.

The newly opened ‘new’R store is a 1S facility spread across 4,500 sq. ft., featuring a dedicated display and customer interaction zone along with a delivery bay. Designed as an urban experiential outlet, it aims to offer a more immersive and seamless buying experience.

ALSO READ: 2026 Renault Duster Turbo TCe 160 Delivers Up to 18.45 km/l Fuel Efficiency

Renault is rapidly expanding this new retail format, with 11 such outlets already operational across India and plans to scale up to 70 locations this year. This network will complement the brand’s existing 350+ sales touchpoints nationwide.

Once a pioneer of the mid-size SUV segment, the Duster continues to attract strong interest. Renault is further strengthening its appeal with customer-focused initiatives like the ‘Renault Forever’ program, offering up to 7 years or 1.5 lakh km of coverage.

The start of deliveries comes at a strong moment for Renault India, which reported a 77% growth in March 2026, driven by models like the Kiger, Triber, and the new Duster.

This special edition brings a sportier edge to MINI’s open-top offering, combining the thrill of convertible driving with the aggressive styling of the John Cooper Works (JCW) pack. Inspired by MINI’s racing heritage, the model gets distinctive JCW design elements on both the exterior and interior, enhancing its signature go-kart-like appeal.

The Convertible JCW Pack aims to deliver a unique blend of performance-focused aesthetics and the freedom of open-air motoring—something that continues to define MINI’s character globally.

ALSO READ: MINI Cooper S Victory Edition Launched in India with Iconic Styling Cues

Customers can place bookings through authorised MINI dealerships across India. The brand currently operates 12 sales outlets spread across 9 cities, including Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, and more. After-sales support is backed by the wider BMW Group India network, ensuring service availability across 36 cities.

Curic brings over two decades of global automotive design experience, with a strong background in performance and luxury vehicles. He joins from Ford Motor Company, where he served as Global Design Director for Performance Vehicles, overseeing several high-impact projects.

In his new role, Curic will head all design functions at McLaren, including exterior and interior design, colour and materials (CMF), as well as digital design. He will work closely with engineering and product strategy teams to ensure the brand continues to push boundaries in lightweight construction, performance, and emotional appeal.

Also read: McLarens, Corvettes, and an R8: $1.5 Million Toasted in a Truck Inferno

Known for evolving iconic models while staying true to their heritage, Curic’s design philosophy aligns well with McLaren’s DNA. His appointment signals the brand’s intent to further sharpen its design identity while embracing innovation in the high-performance luxury space.

The rollout begins in 2026, with the first studio already opened in Copenhagen. More locations are planned across Europe, North America, Asia, and Australia, with over ten city-centre studios set to go live this year.

Unlike traditional dealerships, these Studios are designed as immersive urban spaces that combine vehicle displays, curated brand experiences, exclusive events, and direct sales—all under one roof. Each location is tailored to reflect its host city while maintaining a consistent global identity.

The initiative aligns with Mercedes-Benz’s “Welcome home.” brand philosophy, focusing on creating a more personal and engaging connection with customers. It also coincides with the brand’s 140th anniversary, marking a historic milestone since Carl Benz patented the first automobile.

The key change behind this price drop is the engine resizing, with the Dominar now featuring a 350cc unit. This allows Bajaj to pass on the benefit of the lower 18% GST slab to customers, making its flagship touring motorcycle far more accessible.

Despite the downsizing, Bajaj claims the Dominar retains its signature performance and touring capability. The bike continues to deliver the strong, highway-friendly character it’s known for, along with the comfort and endurance needed for long-distance rides.

ALSO READ: Bajaj Pulsar 180 Returns with LED Lighting and Bluetooth Connectivity

Positioned as a true all-rounder, the Dominar 400 still balances daily usability with serious touring potential. Its muscular design, stable dynamics, and mile-munching ability remain unchanged, ensuring enthusiasts don’t miss out on the core experience.

At the heart of the new S1 X+ is Ola’s indigenously developed 4680 Bharat Cell, highlighting the company’s push towards vertical integration—from cell manufacturing to complete vehicle production.

The scooter packs serious performance for its segment. It is powered by an 11 kW mid-drive motor with an integrated motor control unit, delivering a claimed IDC range of 320 km and a top speed of 125 km/h. Ola has also equipped it with Brake-by-Wire technology and a front disc brake setup, aiming to enhance control and braking feel.

The launch further strengthens Ola’s Gen 3 lineup, which spans multiple variants across the S1 range, catering to both premium and mass-market buyers. Alongside its scooters, the brand is also expanding its presence in the electric motorcycle space with the Roadster lineup.

With the S1 X+ 5.2 kWh, Ola Electric is clearly pushing the boundaries of range and performance in the affordable EV space, while doubling down on its made-in-India battery tech.

The NX8 is offered in both fully electric (BEV) and range-extended (REEV) forms. The BEV version delivers up to 650 km of range (CLTC) and is built on an 800V architecture supporting 5C ultra-fast charging—enough to add around 300 km of range in just six minutes.

The REEV variant takes practicality a step further, offering up to 310 km in pure EV mode and a combined range of 1,450 km. Fuel efficiency during petrol operation is rated at 4.51 L/100 km.

Inside, the NX8 is packed with tech. It gets dual 15.6-inch screens, Nissan OS 2.0, and is powered by a Qualcomm Snapdragon 8295P chipset. A massive 63-inch equivalent augmented reality head-up display adds a futuristic touch to the driving experience.

Safety is also a strong focus, with a battery monitoring system developed with CATL, tested across 146 parameters, along with a driver assistance suite co-developed with Momenta.

Practicality hasn’t been overlooked either. The NX8 offers a 773-litre boot, generous rear headroom, and even a built-in temperature-controlled refrigerator.

Deliveries for the BEV variant have already begun, while REEV models are set to follow soon.

The return of the Pulsar 180 comes on the back of strong rider demand and coincides with 25 years of the Pulsar brand. Known for shaping India’s performance biking scene, the 180 played a crucial role in building the Pulsar legacy by offering a balance of power and everyday usability.

In its latest avatar, the Pulsar 180 gets new graphics along with a full LED setup, including the headlamp and indicators, giving it a sharper and more contemporary look. It also features a Bluetooth-enabled digital console, bringing in modern connectivity to the old-school streetfighter.

ALSO READ: New Bajaj Pulsar 125 in India Gets LED Headlight and Indicators

While the core character remains intact, the updates aim to keep the motorcycle relevant for today’s riders. It continues to position itself as a solid upgrade for those stepping up from 150–160cc machines, offering more performance and road presence without losing practicality.

Positioned in the A-segment, the Super-ONE stands out as a lightweight EV, tipping the scales at just 1,090 kg while offering a claimed range of 274 km (WLTP). It’s built on a modified version of Honda’s N Series platform, featuring a wider stance and a slim underfloor battery that helps lower the centre of gravity.

What adds a twist is Honda’s focus on driving feel. The Super-ONE gets a dedicated BOOST Mode, pushing output from 47 kW to 70 kW. It also features a simulated seven-speed transmission and Active Sound Control, recreating the sensation of gear shifts and engine sound—something enthusiasts will find intriguing in an otherwise silent EV.

ALSO READ: Honda to Export US-Built Passport SUV to Japan in 2026

On the features front, the compact EV comes equipped with an eight-speaker Bose premium audio system as standard, marking a first for Honda in this segment in Japan. Buyers can choose from five exterior colours, including a standout Boost Violet Pearl finish.

The Super-ONE will be showcased at the Automobile Council 2026 before pre-orders begin at Honda dealerships nationwide.

The showcase includes the Venus concept sedan and the Earth concept SUV, both previewing Hyundai’s future EV lineup for the Chinese market. Interestingly, upcoming Ioniq models in China will follow a planet-inspired naming strategy.

The Venus concept leans towards a sleek, futuristic design with a flowing single-curve silhouette, finished in a distinctive Radiant Gold shade. Inside, it features layered ambient lighting and a premium mix of suede and chrome-gold accents.

ALSO READ: Hyundai Diverts Ships as Closed Strait of Hormuz Disrupts Trade

In contrast, the Earth concept SUV takes a more rugged approach, with sculpted bodywork, skid plates, and a unique lighting setup inspired by natural elements like tree shadows—blending off-road cues with a modern EV aesthetic.

Hyundai isn’t just focusing on cars here. The Ioniq brand in China is set to evolve into a broader mobility ecosystem, integrating locally developed autonomous driving tech and extended-range electric vehicle (EREV) solutions.

More details are expected at Hyundai’s official presentation at Auto China 2026, where the brand’s China-specific EV strategy will be fully outlined.

The strong numbers highlight growing customer trust in Toyota’s self-charging hybrid technology and the continued popularity of the Innova nameplate. Built on the TNGA platform, the HyCross blends modern design with the brand’s core strengths of quality, durability and reliability.

Powering the MPV is a 2.0-litre petrol engine paired with Toyota’s fifth-generation strong hybrid system, delivering a combined output of 186 PS. The setup allows the HyCross to run in EV mode for a significant portion of city driving, helping improve fuel efficiency while keeping emissions in check. A pure petrol variant is also on offer, producing 174 PS.

ALSO READ: Next-Gen Toyota Fortuner Spied With ADAS Upgrade

Priced from ₹19.53 lakh (ex-showroom), the HyCross strengthens its appeal with an 8-year battery warranty on hybrid variants and a 5-star safety rating under BNCAP.

On the features front, it packs in segment highlights like powered Ottoman second-row seats, ventilated front seats, dual-zone climate control, and a comprehensive suite of connected tech. Safety is further enhanced with Toyota Safety Sense, offering advanced driver assistance features.

A massive KRW 49 trillion investment over the next five years will fuel this push, with a strong focus on electrification. Kia plans to expand its EV lineup to 14 models, targeting annual EV sales of one million units by the end of the decade.

Hybrids will also play a major role, with 13 HEV models expected to drive 1.1 million annual sales. Meanwhile, internal combustion engine vehicles will still contribute significantly, with a projected 1.98 million units annually.

ALSO READ: Kia EV3 Is the Budget EV That Doesn’t Feel Like One

Looking at new segments, Kia is developing a body-on-frame pickup for North America, expected to feature hybrid and range-extended electric variants—hinting at a more versatile future lineup.

The brand is also betting big on its Platform Beyond Vehicle (PBV) business, targeting 232,000 annual sales by 2030 through models like PV5, PV7 and PV9 aimed at the light commercial space.

Region-wise, Kia is targeting over one million units in the US, 746,000 in Europe, and nearly 1.5 million across emerging markets.

On the tech front, Kia plans to roll out its first software-defined vehicle by 2027, with advanced Level 2++ autonomous driving set to follow by 2029.

Photo by Marvin Meyer on Unsplash

The Market Is Moving — And Not Slowly

McKinsey puts the automotive software and electronics market at $462 billion by 2030. That number isn't a projection thrown around at conferences — it shows up in acquisition activity, ballooning R&D budgets, and the fact that software headcount at major OEMs has doubled in under five years.

Carmakers aren't used to operating like software companies. So external partners who understand both worlds have become genuinely valuable. Companies specialising in automotive software solutions — working across OEM supply chains, connected vehicle platforms, and back-end service infrastructure — are filling gaps that automakers simply can't close fast enough internally. Automotive software development has become the most expensive line item in vehicle programs at several OEMs. Ask anyone who worked on VW's CARIAD project.

CARIAD launched in 2020 with a clear goal: one unified software stack for every VW Group brand, from Škoda to Porsche. By 2023, the unit had burned through billions, delayed the Audi Q6 e-tron launch, and reshuffled leadership twice. The takeaway wasn't that in-house software is a bad strategy. It's that software development for automotive industry at real OEM scale is harder than it looks from the outside and automotive project timelines were built for a different era. Toyota, Stellantis, and Hyundai watched and recalibrated accordingly.

SDV: Everyone's Using the Acronym, Fewer Are Shipping the Product

Software-Defined Vehicle — SDV — is the framework reorganising how cars get designed, built, and updated post-sale. Instead of locking features into hardware at the factory, you build a software layer that can be updated wirelessly. Tesla proved this worked years ago: Drag Strip Mode on the Model 3, Autopilot behaviour improvements, battery range adjustments — all pushed over the air without touching the physical car. The rest of the industry is catching up, at wildly different speeds.

The core building blocks of an SDV architecture:

• Central compute platforms — replacing 80–150 scattered ECUs with 3–5 high-performance domain controllers
• AUTOSAR Adaptive — the standard enabling dynamic app loading and updates without hardware replacement
• SOME/IP and DDS middleware — handling communication between software components across vehicle domains
• Secure OTA pipelines — because a corrupted update pushing to 50,000 vehicles simultaneously is an unrecoverable PR event
• Hardware abstraction layers — so the same software can run on different processor architectures across model lines

NVIDIA's DRIVE platform is inside development programs at Mercedes, Volvo, and Jaguar Land Rover. Qualcomm's Snapdragon Ride is in BMW and Honda vehicles. These aren't chip licensing deals — they come with full software stacks and developer toolchains attached.

ADAS: Where the Stakes Get Real

Advanced Driver Assistance Systems are where vehicle software development gets expensive, slow, and genuinely high-stakes. A sensor fusion delay or camera misclassification isn't a UX problem — it's a potential fatality. The SAE levels most people have seen on spec sheets:

• Level 2 — simultaneous steering and throttle/brake control: Tesla Autopilot, GM Super Cruise, Ford BlueCruise
• Level 3 — driver can fully disengage in defined conditions: Mercedes Drive Pilot (California and Nevada, approved 2023), Honda Sensing Elite in Japan
• Level 4 — no driver needed within specific operational zones: Waymo One in San Francisco and Phoenix, Zoox in Las Vegas, Baidu Apollo Go in Wuhan
• Level 5 — full autonomy anywhere — doesn't exist commercially yet

Mercedes Drive Pilot is worth paying attention to. It became the first Level 3 system approved for US public roads — capped at 40 mph in mapped highway traffic jams. Sounds unimpressive until you understand what regulatory approval for a system where the driver bears no legal responsibility actually required. Lawyers spent as much time on that launch as engineers did.

Waymo is running around 700 robotaxis across San Francisco and Phoenix with no safety drivers. Over 20 million miles of fully autonomous operation logged. That's real operational data, not simulation hours — and it's pulling ahead of most competitors by a significant margin.

V2X: Almost Ready Since 2015

Vehicle-to-Everything communication has been "nearly deployed" for roughly a decade. The concept is solid: cars talking to traffic lights, other vehicles, road sensors — reducing accidents and cutting congestion in real time. The execution got delayed by a standards war nobody needed.

DSRC (backed by traditional automotive) versus C-V2X (Qualcomm and telecom operators) paralysed actual deployment for years. C-V2X won, largely because 5G infrastructure gave it a ready-made backbone.

What's actually live today:

• Audi Traffic Light Information — operating in select US cities, showing drivers the speed to catch the next green
• EU C-Roads project — V2X infrastructure deployed along major cross-border highways in Austria, Germany, France, and the Netherlands since 2019
• India's AIS-140 mandate — Vehicle Location Tracking for commercial and public transport fleets, building the connectivity layer that future V2X services will run on

The Genuinely Hard Parts

Cars Aren't Phones

A phone update fails and you restart the device. A braking system update fails and someone gets hurt. That difference explains most of the compliance overhead in automotive software — and why timelines in this industry look absurd compared to consumer tech.

The standards stack every automotive software team works against:

• ISO 26262 — functional safety, defining ASIL levels A through D (ASIL D covers the most safety-critical functions like braking and steering)
• ASPICE — Automotive SPICE, governing how the development process itself is structured and audited
• UNECE WP.29 / R155 — mandatory cybersecurity regulations for new type approvals in the EU, Japan, and South Korea
• ISO/SAE 21434 — cybersecurity engineering across the full vehicle lifecycle
• SOTIF (ISO 21448) — covering failures from system limitations, not just hardware faults

A feature that takes two weeks to code can take six months to certify. Not bureaucracy — just the cost of deploying software in safety-critical systems.

The ECU Debt Problem

Today's average vehicle carries between 80 and 150 ECUs from dozens of different suppliers, each running proprietary embedded software written across different decades. Getting that consolidated into a coherent, updatable architecture is genuinely messy — some of those software contracts can't be touched, some code hasn't had anyone who understands it for years.

Zonal architecture is the answer the industry settled on: organise compute by physical vehicle zone (front, rear, left, right) rather than by function, with fewer and more powerful nodes handling multiple domains. BMW's Neue Klasse platform launching in 2025 is built entirely on this model. VW's E3 1.2 architecture targets the same approach for Group vehicles from 2026.

Emerging Technologies Worth Watching

AI in Production Vehicles

Machine learning is already deployed across several vehicle software domains — not just autonomous driving:

• Predictive maintenance — Bosch's eCall and fleet platforms like Samsara use sensor data to flag component degradation before actual failure
• Driver Monitoring Systems — in-cabin cameras tracking eye movement and fatigue indicators, now part of Euro NCAP's 2023 rating criteria
• In-car voice assistants — Mercedes MBUX with ChatGPT integration launched in 2023 across the S-Class and EQ lineup; VW and Cupra followed using Cerence's CarLife with GPT-4
• AI-assisted code generation — tools generating AUTOSAR-compliant component templates, cutting the most repetitive parts of embedded software work

Digital Twins Cutting Development Time

A digital twin is a software replica of a physical system updated with real sensor data. For automotive programs, twins let engineers run software against a simulated vehicle environment months before physical prototypes exist. MathWorks Simulink has been the standard here for years, but ANSYS AVxcelerate, IPG CarMaker, and dSPACE SIMPHERA are now common in OEM validation pipelines.

BMW reported cutting hardware-in-the-loop testing time by up to 30% on electrified platform development using digital twin workflows. At the program cost levels involved, 30% matters.

Cybersecurity — The Recall Nobody Sees Coming

In 2015, researchers Charlie Miller and Chris Valasek remotely took control of a Jeep Cherokee over a cellular connection — adjusting climate controls, cutting the engine on a live highway. Chrysler recalled 1.4 million vehicles. The software patch cost under a million dollars. The reputational damage cost considerably more.

The threat categories that automotive security teams actually work on:

• OTA interception — man-in-the-middle attacks during wireless update delivery
• CAN bus injection — sending malicious commands across the internal vehicle network
• Telematics compromise — attacking cellular modems to gain remote vehicle access
• Supply chain insertion — malicious code introduced at tier-2 or tier-3 supplier level, invisible to the OEM until production

UNECE R155 requires a Cyber Security Management System for all new vehicle type approvals — no CSMS, no regulatory sign-off in the EU, Japan, or South Korea. Enforceable for all new vehicles from July 2024.

Where This Is Actually Running

Fleet management was the early adopter story. Trucking operators and delivery fleets had direct ROI: route optimisation, maintenance alerts, driver behaviour scoring that cut insurance premiums. Tata Motors' FleetEdge platform and Ashok Leyland's iEGO system are deployed across commercial vehicle fleets, offering real-time diagnostics and geofencing through their own cloud infrastructure.

EV software is a distinct discipline. Battery Management Systems, thermal management, charging protocol negotiation across CCS, CHAdeMO, and the emerging NACS standard — all of this is specialised vehicle software development that shares very little with ICE vehicle programming. Rivian built their entire stack in-house, including a custom OS managing per-cell battery balancing and OTA updates. The R1T and R1S consistently get strong software reviews as a result. BYD handles everything in-house across Dynasty and Ocean series — their e-Platform 3.0 supports simultaneous OTA updates to powertrain, thermal, and infotainment. The Atto 3 and Seal carrying that platform in India include remote diagnostics managed through BYD's own infrastructure.

Infotainment is splitting into two camps. Google's Android Automotive OS — native on the head unit, not the phone-mirroring Android Auto — is now embedded in Volvo, Renault, Polestar, and Chevrolet vehicles. OEMs offload UI development costs and get Google Maps and Assistant baked in. The tradeoff: Google gets the driver relationship and in-vehicle data. BMW and Mercedes have both stayed on proprietary stacks for now, citing data ownership and brand differentiation. Whether that position survives the next five years is genuinely uncertain.

What's Coming

Vehicle software development converges on a few clear points over the next three to five years:

• Post-sale revenue through software — feature unlocks and subscriptions after purchase. BMW's heated seat subscription was badly received, but the model isn't disappearing
• Consolidated compute — NVIDIA's DRIVE Thor (2025 integrations) targets 2,000 TOPS in a single SoC, replacing what currently requires multiple separate processors
• Broader AI integration — monitoring and predicting across all vehicle systems, not just driving assistance
• Regulatory expansion — more markets adopting WP.29-equivalent frameworks; global compliance infrastructure becoming a baseline cost of doing business

The software experience is becoming an actual purchase factor. Nexon EV and Punch EV compete against Atto 3, Ioniq 5, and ZS EV — all carrying different OTA capabilities, connected service ecosystems, and update track records. Reviewers are benchmarking it. Buyers are asking about it. That's a shift from even three years ago.

Automotive software development isn't background infrastructure for the vehicle business anymore. It's the product. The compliance complexity is real, the talent shortage is real, and the investment required is significant. But the vehicles shipping in 2026 and beyond will look nothing like what was on roads five years ago and the difference will be written in code.

The longer route is a significant shift, especially since Europe relies heavily on Korean-built vehicles—accounting for over 80% of combined Hyundai and Kia sales in 2025. To reduce dependency, the automaker is now evaluating sourcing more components locally in Europe, a move that could also align with stricter regional localisation norms expected in the future.

For now, Hyundai is managing the impact using built-up inventory buffers, a strategy shaped by lessons from the COVID-19-era supply chain disruptions. Unlike earlier years, supply decisions are now being reviewed on a weekly basis instead of annually.

Interestingly, despite potential fuel price spikes, Hyundai is not accelerating its EV push. In fact, its upcoming U.S. facility in Georgia—initially planned as a dedicated EV plant for models like the Ioniq 5—will also produce hybrids and range-extended vehicles from 2027.

The broader concern lies in raw material supply. South Korea remains heavily dependent on the Gulf region for key inputs like naphtha (used in plastics), helium for semiconductors, and aluminium—all of which are now under pressure due to ongoing disruptions.

If the situation persists, it could ripple across the global automotive industry, forcing manufacturers to rethink supply chains, localisation, and long-term production strategies.

Source