Stellantis targets €20 billion in revenue through connected vehicle software upgrades
Software-enabled products and offerings will be delivered in connected cars.
Stellantis is planning to generate up to €20 billion (£16.9bn) in incremental annual revenue by 2030 through connected cars and over-the-air updates.
The car giant, which owns Abarth, Alfa Romeo, Citroen, DS Automobiles, Fiat, Jeep, Maserati, Peugeot and Vauxhall, will invest more than €30 billion (£25.4bn) by 2025 in order to carry out this transformation.
Today, Stellantis has 12 million monetizable connected cars across the globe, but it expects this to rise to 26 million by 2026 – generating €4bn (£3.3bn) through subscriptions in the process. By 2030, it predicts this number of cars to reach 34 million vehicles, returning approximately €20bn in annual revenues.
Carlos Tavares, Stellantis CEO, said: “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.
“With the three all-new AI-powered technology platforms to arrive in 2024, deployed across the four STLA vehicle platforms, we will leverage the speed and agility associated with the decoupling of hardware and software cycles.”
Customers who own a connected car will be able to add different paid-for features via over-the-air upgrades. Stellantis says that these updates will help to keep cars ‘fresh, exciting and updated years after they have been built’. For example, owners could add a variety of entertainment functions – such as Apple CarPlay or Android Auto – after initially purchasing the vehicle without them fitted.
