Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Thursday, January 12, 2023

CES 2023: confirmation that software has replaced the car engine in importance

The already traditional technology and electronics show in Las Vegas had a historic presence of companies from the mobility sector. 275 niche firms showed their advances in R&D.

For several years now it has been proclaimed that the traditional motor shows will die. Those exhibitions, where automakers display their latest launches and present concept cars that reveal where the brand is headed, have been left behind, almost definitely. If it were not for the fact that a new edition of the 2022 Paris Motor Show was held, the first after the Covid-19 pandemic, it could be said that these auto shows “died”, although it would be more fair to say that they mutated. Now automakers aim to show their developments at technology fairs, such as the Consumer Electronic Show (CES).

As never before, the innovations in the automotive world go hand in hand with more powerful and intelligent software, and its mechanics or type of motorization remain in the background or third place.

This industry is experiencing peak years, between increasingly demanding environmental regulations and new user preferences. But the proposals observed raise improvements that drivers will be able to enjoy in a short time and also those that will be seen in the medium or long term.

Android Auto and the smart key. Today, almost all 0km cars are equipped with a multimedia system to which it is almost always possible to pair them with the mobile through Android Auto or Apple Car Play.

At CES 2023, Google presented the latest software update that allows to replicate all the functions of the smartphone on the car screen. At a general level, readability and response time have improved, something key for the driver to clearly identify where to push and take their eyes off the road as little as possible. Maps cartography improved, being positioned closer to the driver and having a more realistic look.

Other of the best ones, perhaps the most demanded by users, is the ability to make calls using WhatsApp while adding a progress bar when searching for music and podcasts.

But without a doubt, the most noticeable advance is the widespread use of the digital key, an Android function that allows to lock, open and even start the car's engine from the mobile. Now, it is possible to share it through users of Pixel and iPhone devices so that those trusted people can also access the car. At CES, Google announced that it will soon reach Samsung devices, while Xiaomi users will be able to use it by the end of the year. At the moment, the only automaker whose cars are compatible with the smart key is BMW, although others will be added soon.

Finally, it was recalled that the automakers that have Android Auto integrated into the car are General Motors, Renault, Polestar and Volvo, while Ford and Lincoln will join this year.

Volkswagen I.D. 7, or the e-Passat. It is clear that the user, as car automation advances, will need to find things to do inside a car that he will no longer drive. Thus, the "comfort" item in the technical data sheets is becoming more sophisticated by leaps and bounds and those models that have always been characterized by this, find themselves with numerous challenges ahead.

In 2022, Herbert Diess, then CEO of the Volkswagen Group, left the company. In the official statement it was indicated that his departure was made by mutual agreement, although behind it there is talk of a dismissal with all the letters. The reason? The numerous software problems of the VW models that led to not only problems in the vehicles put on the road, but also to the delay of new developments.

In this context, the I.D.7 was exhibited, also known as the future "e-Passat", that is, the emblematic car in terms of comfort and technological development of VW. “Little” the 700 kilometers of autonomy that it promises matter, but the AI system weighs more, which, among other things, will command the air conditioning of the passenger compartment. It will work with voice commands, which will respond to commands that begin with a "Hello Volkswagen". Thus, if the driver has cold hands, he will direct the air vents towards the steering wheel; while if the system detects that the sun enters from the right side after turning a curve, it will rotate the air outlets and automatically lower the temperature to maintain the chosen temperature. The ID. 7 would hit the European market this year.

Sony Honda Mobility, first deliveries in 2026. Afeela is the e-car brand co-created between Sony Group Corp. and Honda Motor Co Ltd., two Japanese giants who decided to work together to develop new cars. Its first model, the EV, was exhibited as a preview of the final one, which is estimated to hit the US market in 2026.

This model also incorporates technology from Qualcomm Inc, hand in hand with the Snapdragon Chasis solution, while it will have more than 40 sensors to allow Level 3 autonomous driving.

Uncertain outlook. Three years after the start of the pandemic, the sector is trying to recover from the lack of semiconductors (which still continues to hit several markets), more expensive logistics, more aggressive environmental regulations and inflation derived from the War between Russia and Ukraine.

The end user also suffers, given that their purchasing power has decreased in the last year, and buying a car no longer makes sense for many when faced with options such as leasing or car sharing.

“The price difference between European and Chinese vehicles is significant. If nothing changes in the current situation, European middle-class customers will increasingly turn to Chinese models. The purchasing power of many people in Europe is declining markedly", warned Carlos Tavares, CEO of Stellantis, the world's fourth largest automobile producer, in Las Vegas, and who is concerned about the future of the sector in Europe.

It is that Asia, especially China, has taken too much advantage in R&D to the traditional European automakers, while in the United States, environmental requirements are not so severe.

Thus, automakers invest a lot of money in making gasoline or diesel engines more efficient or re-adapting plants to new forms of propulsion, something that translates into the final price paid by the user. Spearhead countries in performance, such as Germany or Italy, or in comfort, such as France, are diminished by the new trends, and as never before, the continent that gave birth to the automobile is in an extreme situation.

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