Stellantis Bets On Software Driven Mobility, Targets €20 Billion Revenue By 2030
Stellantis, which owns Abarth, Alfa Romeo, Citroen, DS Automobiles, Fiat, Jeep, Maserati, Peugeot and Vauxhall plans to generate up to €20 billion in incremental annual revenue by 2030 through connected car tech, subscriptions and over-the-air updates.
The company plans to invest more than €30 billion by 2025 in order to carry out this digital transformation. Manufacturers are seeing their cars with all the technology inside them as a software platform and with electric vehicles, this becomes much easier. As we are used to receiving Over The Air (OTA) updates on our smartphones, Cars today can receive software updates with new features, apps, and security updates over the air as well and thus it has a monetization potential.
“Our electrification and software strategies will support the shift to become a sustainable mobility tech company to lead the pack, leveraging the associated business growth with over-the-air features and services, and delivering the best experience to our customers,” said Carlos Tavares, Stellantis CEO
Stellantis will grow its software and connected services business through five key pillars:
• Services and Subscriptions
• Features On Demand
• Data as a Service and Fleet Services
• Vehicle Pricing and Resale Value
• Conquests, Service Retention and Cross-Selling
Stellantis today has 12 million monetizable connected cars globally. By 2026, the company expects the number to grow to 26 million vehicles and generate approximately €4 billion in revenues and by 2030, it is expected to reach 34 million vehicles and approximately €20 billion in annual revenues.
The company plans to launch three New Tech Platforms in 2024, the new platforms will be deployed, at scale, across the four vehicle platforms of Stellantis over the following two years.
Fully OTA capable this enable software developers to create and update features and services quickly without waiting for a new hardware launch.
Powered by the Mobile Drive joint venture between Stellantis and Foxconn, delivers AI-based applications such as navigation, voice assistance, e-commerce marketplace, and payment services.
Developed in partnership with BMW, will offer Level 2, Level 2+ and Level 3 autonomous driving capabilities and will be continuously upgraded through OTA updates.
To support this transformation, Stellantis is creating a software and data academy to retrain more than 1,000 internal engineers in multiple roles and develop its software community.
The Company is also hiring top software and AI talent from technology and other industries globally. By 2024, Stellantis targets having 4,500 efficiency-driven software engineers, creating talent hubs around the globe.
