The iPhone-ification of cars unlocks a new world of options

The vehicle development cycle is typically very long. Automakers are like soothsayers, peering far into the future to ensure their latest vehicles remain relevant upon release. In the past, before the emergence of software-defined vehicles (cars operated by technology rather than just enhanced by it), car manufacturers had to wait until the next model year to update features and functions.

However, this is no longer the case. For example, Kia’s three-row EV9, an all-electric SUV introduced in 2023, comes equipped with a full suite of technology that allows for upgrades and updates via WiFi. Known as over-the-air (OTA) updates, these software tweaks range from simple infotainment system enhancements to new firmware code. The EV9 is Kia’s first model to offer system over-the-air updates, along with navigation-based charging guidance based on data stored in the vehicle.

Sujith Somasekharan from the Connected Car and Mobility team at Kia America explains, “With the launch of the EV9, we have been able to implement multiple software updates to enhance the regular functioning software capabilities. For example, we improved the battery charging pad’s efficiency and functionality through an OTA update.”

For those familiar with iPhone or Android smartphones, this process may feel similar. Smartphones regularly receive OTA updates to fix bugs, enhance security, or introduce new features.

PCs on wheels

Today, cars are essentially multiple powerful computers on wheels. While OTA updates are more common in electric vehicles like those from Lucid, Tesla, and Rivian due to their software-driven nature, many gas-powered cars are also adopting this practice.

Remote software installations add an interesting dimension. Most new cars have internet connectivity, giving automakers various options for additional services. For instance, BMW experimented with a subscription service in 2023 that allowed overseas customers to opt for heated seats at an extra cost. Although this wasn’t implemented in the U.S. market, it raised concerns among automotive journalists about potential nickel-and-diming strategies by brands. Prior to BMW’s initiative, Mercedes-Benz introduced a performance subscription for its EVs in late 2022.

Consider this: for car manufacturers, enabling software options that can be activated or deactivated streamlines production and could significantly reduce costs. They could produce a single model with features that can be toggled on or off with a simple touchscreen selection. Want massaging seats? Pay a monthly fee. Need maximum horsepower? Click here. The possibilities are vast, akin to smartphone apps offering in-app purchases.

David Kelly, Chief Corporate Officer at Cubic Telecom, emphasizes the distinction between software updates for enhancements and recalls. While some issues in Tesla vehicles may be addressed through OTA updates, recalls are a separate matter.

Kelly explains, “In a recall scenario, millions of vehicles may be affected, yet owners may not need to take any action as the car is updated automatically when connected online. The terminology is crucial, as a major smartphone manufacturer would not label a software update as a ‘recall.’ The difference between a full recall and a software update is significant in terms of customer impact and reputation.”

Options by subscription only 

Returning to Kia, the brand offers the KiaConnect service in four tiers, each at a different price point. The “Lite” version is complimentary for five years, offering basic features. The “Care” plan includes safety measures for teen drivers and services like geofencing, speed limits, and curfew alerts. “Plus” adds features like a “find my car” function and remote operations such as controlling heated or ventilated seats from outside the car. The top-tier “Ultimate” plan allows users to use a digital key to unlock the car with their smartphone.

Signing up for a subscription requires providing personal information, which may not appeal to all customers, according to Somasekharan. In such cases, buyers can opt for the modem to remain inactive, avoiding prompts for OTA updates. Alternatively, they can visit the dealership to download the updates directly, although this may be inconvenient for some customers who prioritize privacy.