Software updates to be downloaded are frequently published available for Tesla’s cars: these new functions like, for instance, the automatic driver increase the vehicle’s skills.
The author of The Verge’s article attended the Detroit Auto Show at the beginning of the year. He interviewed several representatives of the automotive industry and found out according to the given answers, that such industry will offer the novelties in the future within the framework of applications to be downloaded instead of extra features of additional charge. BMW’s example shows this new practice well: while the company offers the Apple CarPlay technology for USD 300 at the US market, Apple’s software platform designed for cars will be available free of charge during the very first year and then for USD 80 as a yearly renting fee.
Postpaid functions to arrive in our cars as well
This business model facilitates the possibility of changing the software platform of a vehicle anytime the owner would like to: for example, in case the family members changed for Android mobiles from iPhone, then Apple CarPlay can also be modified to Google’s Android Auto in the car. Smartphones can perfectly communicate with the vehicle utilizing CarPlay or Android Auto and they can be easily controlled by using the buttons on the wheel. In the opinion of analysis company IHS Markit’s expert, automotive manufacturers will offer software-based services to their vehicles in a more and more widely sphere in the future.
Renting fee of these functions means a greater profit-margin than the one-time sale of an expensive extra feature like for example, the on-board navigation. According to the predictions of IHS, postpaid services available in the vehicles will have a worldwide market of USD 6 billion within 5 years.
Tesla, king of software updates
The most spectacular software updates go constantly to Tesla’s electric cars: for instance, automatic windscreen wipers have become available owing to the new software. What is more, more complex services like automatic parking or the self-driving function could be accessible also this way. The vehicle ’Model S’ will be very soon installed with a software enabling the car to compensate the rolling sound of the tyres or the wind noise by the vehicle’s sound system and even the automatic windscreen wipers will be usable the same way.
The fact that the company is able to update its own-manufactured vehicles from a great distance seems to be very useful: for example, at time of Hurricane Irma, Tesla – using only a software update – temporarily increased the one-charge distance of its cars in Florida escaping from the natural catastrophe in question.
We can even postpay for cars
Volvo has also noticed the opportunity in postpaid constructions, since the company offers a postpaid insurance, maintenance and assistance to its urban jeeps ’XC40’ at the US market. The US Cadillac has even gone further since US customers of the company can postpay for a vehicle for monthly USD 1,500: the clients can use the manufacturer’s four models to suit their preference, however, the number of possible vehicle changes is maximized in yearly 18 times.
A similar service costing monthly USD 2,000 to 3,000 is also offered in the USA by Porsche: sport cars can be requested within the framework of a pilot programme in Atlanta using a smartphone application for this purpose. Audi also tests an alike solution in San Francisco, while Ford does experiments in Los Angeles with a service called ‘Canvas’, a more affordable postpaid car renting opportunity, meaning a monthly fee of only USD 400 to 500.