Is It Time to Rebrand ‘Recall’?
The way we understand and think about vehicle repairs, service, and upgrades is changing as the automotive industry moves towards software-defined vehicles (SDVs) and connectivity. Tesla’s recent large-scale recalls, which accounted for almost 4 million vehicles, showcased a new approach to addressing safety and performance issues. Rather than requiring owners to bring their vehicles to a dealership for fixes, Tesla delivered Over-the-Air (OTA) software updates that resolved the issues without any inconvenience to the drivers.
This shift towards software updates illustrates the changing nature of automotive technology. As more vehicles become connected, with McKinsey estimating that 95% of new cars sold globally will have connectivity by 2030, the traditional understanding of recall should be reconsidered. OTA updates allow for the regular enhancement of vehicles, adding new features, improving user experiences, and resolving issues. This is a normalized experience in the realm of everyday software and apps, and it is increasingly applicable to vehicles as well.
By focusing on software as the primary driving force behind vehicles, manufacturers have the opportunity to increase the value of their products. Buyers now seek vehicles with better connectivity features, with research showing that 40% of car buyers are willing to switch brands for this reason. The ability to deliver OTA updates for safety, comfort, and performance gives manufacturers an avenue to provide highly visible and useful new features over a vehicle’s lifetime.
Connectivity plays a crucial role in SDVs, not only enabling OTA updates but also providing real-time data analytics, performance monitoring, and AI capabilities. For original equipment manufacturers (OEMs), ensuring robust and reliable connectivity is essential. However, this task is complex and regulated, particularly when it comes to delivering cross-border connectivity. Without agreements in place, consistency of service and customer experience can be compromised.
While updates, recalls, and fixes are important, OEMs must address connectivity challenges to deliver a consistent customer experience. Failure to meet these expectations risks damaging consumer trust. As more individuals share their experiences with SDVs, manufacturers must consistently deliver engaging, safe vehicles that seamlessly integrate into people’s digital lives.
In conclusion, the automotive industry is undergoing a transformation as vehicles become software-defined and connectivity takes center stage. The conventional term recall may no longer adequately capture the evolving nature of automotive technology. Instead, we should reserve the term for physical vehicle recalls and embrace OTA updates as a new means of enhancing vehicle safety, performance, and functionality. With the right approach to connectivity and software updates, manufacturers can meet the expectations of modern buyers and build trust in their brand.
Source: David Kelly, Chief Corporate Officer of Cubic Telecom.
