Stellantis bets big on software-driven vehicles, targets 20 bn euros in new revenue

Stellantis today mapped out its software strategy to deploy next-generation tech platforms, building on existing connected vehicle capabilities to transform how customers interact with their vehicles, and to generate approximately 20 billion euros (Rs 1,65,340 crore) in incremental annual revenues by 2030.

This transformation will move Stellantis’ vehicles from today’s dedicated electronic architectures to an open software-defined platform that seamlessly integrates with customers’ digital lives. It greatly expands the options customers have to add innovative features and services via regular over-the-air (OTA) updates keeping vehicles fresh, exciting and updated years after they have been built.

 “Our electrification and software strategies will support the shift to become a sustainable mobility tech company to lead the pack, leveraging the associated business growth with over-the-air features and services, and delivering the best experience to our customers,” said Carlos Tavares, Stellantis CEO. “With the three all-new AI-powered technology platforms to arrive in 2024, deployed across the four STLA vehicle platforms, we will leverage the speed and agility associated with the de-coupling of hardware and software cycles.”

Stellantis plans to invest more than 30 billion euros (Rs 248,010 crore) through 2025 to execute its software and electrification transformation. The Stellantis software strategy works hand-in-hand with the company’s vehicle electrification plans, detailed at EV Day in July 2021, which targets that more than 70 percent of its vehicle sales in Europe and more than 40 percent of vehicle sales in the United States will be low emission vehicles (LEV) by 2030. Each of Stellantis’  14 iconic brands is committed to offering best-in-class fully electrified solutions.

Five pillars for future software-driven growth
Stellantis will grow its software and connected services business through five key pillars:
- Services and Subscriptions
- Features On Demand
- Data as a Service and Fleet Services
- Vehicle Pricing and Resale Value
- Conquests, Service Retention and Cross-Selling

Stellantis currently has 12 million monetizable connected cars globally. By 2026, this is expected to grow to 26 million vehicles and generate approximately 4 billion euros in revenues and by 2030, it will reach 34 million vehicles and approximately 20 billion euros in annual revenues. Monetizable is defined as the vehicle’s first five years of life.

Three new tech platforms in 2024
Launching in 2024, the three new platforms will be deployed, at scale, across the four vehicle platforms of Stellantis over the following two years. The heart of the transformation to customer-centric services is the new electrical/electronic (E/E) and software architecture, STLA Brain.

STLA Brain is fully OTA capable, with 30 modules addressed, versus 10 today, making it highly flexible. It is a service-oriented architecture fully integrated with the cloud that connects electronic control units within the vehicle with the vehicle’s central high performing computer (HPC) via a high-speed data bus. It breaks today’s bond between hardware and software generations, enabling software developers to create and update features and services quickly without waiting for a new hardware launch. These OTA updates dramatically reduce costs for both the customers and Stellantis, simplify maintenance for the user and sustain vehicle residual values.

STLA SmartCockpit, built on top of STLA Brain, will seamlessly integrate with the digital lives of vehicle occupants to create a customizable third living space. Studies show that customers spend an average of four years of their lives in their vehicles and this is only increasing.

STLA SmartCockpit, powered by the Mobile Drive joint venture between Stellantis and Foxconn, delivers AI-based applications such as navigation, voice assistance, e-commerce marketplace and payment services.

STLA AutoDrive, developed in partnership with BMW, will offer Level 2, Level 2+ and Level 3 autonomous driving capabilities and will be continuously upgraded through OTA updates.

Year to date, Stellantis has delivered more than 6 million over-the-air updates to its vehicles, and intends to offer at least quarterly releases by 2026.

Today, Stellantis’ connected vehicles provide more than three trillion data points, generating timely, actionable insights. Stellantis engineers are using this information to shorten the vehicle continuous improvement loop, improving customer satisfaction, while generating €1.1 billion in efficiencies by 2030.

Each of Stellantis’ brands are focused on using software to the fullest benefit of its customers, embodied in their individual commitments.

To support this transformation, Stellantis is creating a software and data academy to retrain more than 1,000 internal engineers in multiple roles and develop its software community.

The Company is also hiring top software and AI talent from technology and other industries globally.

By 2024, Stellantis targets having 4,500 efficiency-driven software engineers, creating talent hubs around the globe. Those engineers will ensure the perfect execution of Stellantis’ software ambitions and operate within the ecosystem created by Stellantis partnerships.