This shift in focus towards software development is driven by several factors. Firstly, the rise of autonomous driving technology is a major catalyst. Autonomous vehicles require sophisticated software systems to navigate, perceive, and react to their surroundings. The development of these systems is complex and demands a high level of expertise in software engineering.

This is no longer possible with the software-defined vehicles. The shift to software-defined vehicles will require carmakers to rethink their entire organizational structure. This is not just about restructuring departments; it’s about fundamentally changing how they operate. The core of this change lies in the integration of software into every aspect of the vehicle, from the engine and transmission to the infotainment system and even the chassis. This integration necessitates a shift in thinking from a traditional, compartmentalized approach to a more holistic, interconnected one.