The automotive industry is transforming fast, and the latest innovation to hit it is a term called “SDVs”. Short for software-defined vehicles, SDVs can manage their own operations, functionalities and enable new features entirely through software.In the past, cars were differentiated on mechanical features such as horsepower and torque. But now cars are defined by software, such as driver assistance systems (ADAS), infotainment innovations and connectivity solutions (connected cars). In fact, it was the CES 2024 (the tech show in Las Vegas) that introduced the world to the era of SDVs, signifying the beginning of a massive technology transition in the automotive field.
Hyundai Motor Group seems to have taken the lead in SDVs, thanks to it acquiring a Korean autonomous transportation-as-a-service (TaaS) start-up called 42dot (founded in 2019 by Song Chang-hyeon, 42dot was acquired by Hyundai in 2022 for 427.6 billion won, or $330 million).Before it was acquired, 42dot had developed an autonomous driving software and hardware solution called AKit, and built an autonomous mobility/logistics platform called TAP! (ride-hailing, fleet management, demand-responsive transport, smart logistics, etc).
But within Hyundai, 42dot has assumed a much bigger role – it is responsible for transforming all Hyundai models into SDVs starting 2025-26. As a first step towards that goal, Hyundai applied over-the-air (OTA) software update technology to all new vehicles it launched in 2023 (including in India on cars such as the Ioniq 5, the new Verna and the Exter, and also on the new Kia Seltos).Today, 42dot has evolved into Hyundai Group’s Global Software Centre. “The aim is to use 42dot as a centre for software technology development and accelerate the transition to an SDV development system,” the company said in a statement. “42dot will lead the development of software-centric mobility devices and solutions beyond the car sales market. To increase contact with customers who are familiar with smartphones, we’ve built a system that seamlessly connects mobility devices and smartphones, and distributes software development kits (SDKs) for mobility devices to create an environment where related companies can develop various applications.”
Initially, the Global Software Centre will develop vehicles centred on SDVs, and apply its own technology platforms and systems to this mobility. The Centre will also develop technologies to connect and control mobility devices so that they can be managed under a single city operating system, and enable autonomous driving.The seriousness with which Hyundai is looking at 42dot can be gauged from the fact that it has started writing in-house software for vehicle OS.At the CES 2024, Song Chang-hyeon said that people have started expecting the same experience with their cars as they do with their phones. “They want their vehicles to receive continuous updates, gaining new and improved features and having bugs fixed,” he said. “In the future, when purchasing a car, customers will want the option to pay for features on-demand, such as ADAS and autonomous driving, viewing these primarily as software features, not hardware features.”On the in-house software, which sounds like a big shift for Hyundai, Song Chang-hyeon said that 42dot is developing a new infotainment system that comes with the app marketplace.
“The system will include a software development kit for developers to create third-party infotainment apps,” he said. “We are also integrating our own large language model into our AI assistant to facilitate human-like interactions with vehicle apps like navigation and music. The aim is to minimise distractions from the infotainment screen, thereby enhancing safety.”42dot is now on a hiring spree – it is actively recruiting global-level software engineers for working in South Korea, as also at its centres in Silicon Valley (USA) and Warsaw (Poland).
