SDV Guide
digital.auto
  • Welcome
  • SDV101
    • Part A: Essentials
      • Smart Phone? No: Habitat on Wheels!
      • Basics: What is a Software-defined Vehicle
      • MHP: Expert Opinion
      • Challenges: What sets automotive software development apart?
      • SDV Domains and Two-Speed Delivery
    • Part B: Lessons Learned
      • Learnings from the Internet Folks
        • Innovation Management
        • Cloud Native Principles
          • DevOps and Continuous Delivery
          • Loose Coupling
            • Microservices & APIs
            • Containerization
            • Building Robust and Resilient Systems
      • Learnings from the Smart Phone Folks
    • Part C: Building Blocks
      • Foundation: E/E Architecture
        • Today`s E/E Architectures
        • Evolving Trends in E/E Architectur
        • Case Study: Rivian
      • Standards for Software-Defined Vehicles and E/E Architectures
      • Building Blocks of an SDV
        • Service-Oriented Architecture
          • The SOA Framework for SDVs
          • Container Runtimes
          • Vehicle APIs
          • Example: Real-World Application of SDV Concepts
          • Ensuring Functional Safety
          • Event Chains in Vehicle SOAs
          • Vehicle SOA Tech Stack
        • Over-the-Air Updates: The Backbone of Software-Defined Vehicles
        • Vehicle App Store: The Holy Grail of Software-Defined Vehicles
      • Summary: Building Blocks for Software-Defined Vehicles
    • Part D: Implementation Strategies
      • #DigitalFirst
      • Hardware vs Software Engineering
        • The Traditional V-Model in Automotive Development
        • Agile V-Model, anybody?
        • Key: Loosely Coupled, Automated Development Pipelines
        • The SDV Software Factory
      • Implementing the Shift Left
        • Simulation and Digital Prototyping
          • Early Validation: Cloud-based SDV Prototyping
          • Detailed Validation: SDVs and Simulation
        • Towards the Virtual Vehicle
          • Case Study: Multi-Supplier Collaboration on Virtual Platform
          • Long-Term Vision
        • Physical test system
        • De-Coupled, Multi-Speed System Evolution
        • Continuous Homologation
        • Summary and Outlook
      • Enterprise Topics
        • Variant Management
        • Engineering Intelligence
        • Enterprise Organization, Processes, and Architecture
        • Incumbent OEMs vs EV Start-ups
  • SDV201
  • ./pulse
    • SDV Culture
    • Lean Sourcing
      • LeanRM
        • Why so many Requirements?
      • SCM for SDVs
    • SDV Systems Engineering
      • LeanSE
      • SDVxMBSE
    • Digital First
    • Loose Coupling
      • API-first
      • Freeze Points
    • Automation and Engineering Intelligence
    • Continuous Homologation
    • Build / Measure / Learn
  • Glossary
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SDV Guide

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(c) 2025 Dirk Slama

On this page
  • Software-defined Vehicle
  • Shift in the E/E-Architecture
  • E/E + SDV
  • Different Change Pace for Each OEM
  • Levels of SDVs
  • Two Speed Delivery Model
  • Fast Cycle
  • Slower Cycle
  1. SDV101
  2. Part A: Essentials

MHP: Expert Opinion

PreviousBasics: What is a Software-defined VehicleNextChallenges: What sets automotive software development apart?

Last updated 6 months ago

The SDV transformation demands not only technological evolution but also organizational agility and strategic foresight. Augustin Friedel (Senior Manager at MHP - A Porsche Company) provided the input in this chapter to help OEMs navigate the challenges and unlock the potential of this game-changing paradigm.

Software-defined Vehicle

The Software-Defined Vehicle (SDV) is considered a game changer in the automotive industry. It aims to meet growing customer expectations for features and functions. The term "Software-Defined Vehicle" (SDV) itself is coined by the automotive industry and is not typically relevant for customer marketing.

The core principle of SDVs involves shifting from hardware-embedded software to a setup where software is fully decoupled from the hardware. This creates an abstraction layer for control and management. Much like smartphones, PCs, or tablets, SDVs feature a base hardware layer over which an operating system (OS) runs, enabling flexibility in software and feature management. Operating systems, such as iOS, Android, Linux, or other proprietary platforms, provide the foundation for this innovation in vehicles.

To move forward, SDVs are conceptualized in layers. The base layer consists of vehicle hardware (e.g., sensors, high-performance computers, actuators, batteries, and wiring), along with core vehicle software such as the operating system. Above this, the customer-centric layers include UX/UI components linked to intelligent cockpits, in-car software, contextual intelligence, and artificial intelligence.

A critical enabler for SDVs is cloud integration, which connects vehicles with external devices like smartphones and enables digital twins. This integration ensures the smooth delivery of features for the cockpit, management of vehicle ecosystems, and enhanced interconnectivity with external environments.

Shift in the E/E-Architecture

The evolution toward SDVs is closely tied to a shift in Electrical/Electronic (E/E) architecture. Historically, vehicles utilized distributed architectures with more than 150 ECUs spread across various vehicle zones. Modern designs, however, aim to consolidate compute power into zonal or centralized architectures.

Zonal architectures reduce the number of ECUs by grouping them into zones, allowing for streamlined communication and compute processes. This shift enhances cost efficiency, simplifies integration, and supports a higher degree of standardization. While centralized architectures are the end goal for many OEMs, transitional models, such as modern domain architectures, serve as intermediate steps. The choice between these approaches depends on the strategic priorities, budgets, and skills of individual OEMs.

Governance plays a critical role in managing this transformation. OEMs must structure their organizations effectively to address the challenges of transitioning to modern E/E architectures and ensure their development roadmaps align with market demands.

E/E + SDV

Combining E/E architectures with SDV principles facilitates a unified approach to vehicle design. Standardized APIs are a crucial enabler for this integration, bridging the gap between hardware and software. These APIs simplify the integration process, reduce costs, and create a modular system that can adapt to customer requirements over time.

By decoupling the base hardware layer from user-centric features and functionalities, manufacturers can achieve greater flexibility. For instance, features like digital cockpits and AI-driven personalization can be updated independently of hardware upgrades, enabling vehicles to remain competitive throughout their lifecycle.

Different Change Pace for Each OEM

The automotive industry is witnessing varied progress among OEMs in adopting SDV principles. Based on the Gartner Digital Automaker Index 2024, OEMs are categorized into three tiers:

  1. Leaders: Companies, particularly in China, are at the forefront of immersive SDV technologies, leveraging AI and cloud integration.

  2. Middle Field: Primarily OEMs from Japan, Korea, and parts of Europe, which are transitioning from smart car features to full SDV integration.

  3. Challengers: OEMs that are still focusing on basic smart car capabilities, such as OTA updates and first-generation app stores.

China, with brands like Huawei, Xiaomi, and JiYue, has surpassed Tesla in several areas of SDV development, particularly in immersive digital living spaces. This regional advantage stems from a focus on AI-driven features, intelligent cockpits, and rapid software development cycles.

Levels of SDVs

SDVs can be categorized into three progressive tiers:

  1. Smart Cars: Vehicles offering basic OTA updates, app stores, and limited customization.

  2. Software-Defined Vehicles: These feature smartphone-like OS releases, extensive backward compatibility, and flexible compute power.

  3. Immersive SDVs: Fully integrated with AI and contextual intelligence, these vehicles offer seamless cloud connectivity and cutting-edge features. Immersive SDVs are predominantly seen in advanced markets like China, while Europe and the US are still transitioning.

Two Speed Delivery Model

To manage the complexities of SDV development, OEMs adopt a two-speed delivery model: Fast Cycle vs Slower Cycle. This approach allows manufacturers to address both the demand for rapid innovation and the need for robust platform-level development.

Fast Cycle

The fast cycle focuses on feature development, leveraging DevOps and agile methodologies. This approach enables quick iterations and faster delivery of new features. Key elements include:

  • CI/CD pipelines for streamlined development and integration.

  • Shift-North strategies to accelerate innovation and feature rollouts.

Slower Cycle

The slower cycle involves platform-level development using systems engineering models like the V-model. A shift-left approach ensures early identification and resolution of issues during development, minimizing costly fixes later in the process. This dual-speed framework helps OEMs balance rapid feature delivery with robust platform development.