Automotive Industry Embraces Software for Future Mobility
Amsterdam, Monday, 15 September 2025.
92% of automotive companies anticipate transitioning into software firms to support Software Defined Vehicles (SDVs), transforming the value chain with AI integration.
The Rise of Software-Defined Vehicles
The automotive industry is witnessing a seismic shift as companies pivot towards becoming software-centric entities. A significant 92% of automotive organizations are preparing for this transformation to support Software Defined Vehicles (SDVs) and software-driven mobility services. The Capgemini Research Institute’s recent report underscores that software-based products and services are expected to form the core of value propositions in the sector, surpassing the traditional focus on physical vehicles [1][2].
AI Integration as a Competitive Edge
AI is becoming an integral part of automotive software, with 85% of organizations embedding AI directly into software functions. This integration is seen as a crucial competitive advantage, poised to revolutionize the automotive value chain by enhancing vehicle functions and mobility services. The survey conducted in June 2025 revealed that 77% of executives believe AI integration will be transformative for the industry [1][3].
Challenges in Scaling Software Initiatives
Despite the enthusiasm, only 14% of automotive organizations have fully deployed software-defined mobility (SDM) initiatives as of 2025. The transition necessitates a revision of organizational models, with 86% of companies acknowledging the need for profound changes in processes and skill development. A unified software platform is considered essential by 83% of organizations to effectively implement a software-driven mobility strategy [1][2].
Global Efforts and Collaborations
Tata Consultancy Services (TCS) has been instrumental in accelerating SDV innovation in Europe, opening new hubs in Germany and Romania to support this transition. These centers are designed to develop solutions for autonomous driving, infotainment, and connected vehicle technologies. TCS emphasizes generative AI to speed up product development, highlighting the global collaborative efforts required to lead in this software-driven era [4].