Latest news with #OEMs
Forbes
a day ago
- Automotive
- Forbes
Preparing For The Software-Defined Future Of Commercial Vehicles
Yu Fang is CTO, CPO & Co-Founder at Sonatus. In the fast-paced and rapidly transforming landscape of commercial mobility, one thing is increasingly clear: the future of commercial vehicles will likely be software-defined. Regulatory mandates for electrification, booming e-commerce and rising expectations around mobility services are reshaping commercial vehicle demands. This has led more original equipment manufacturers (OEMs) to transition from traditional static vehicle architectures to software-defined vehicles (SDVs). The Drawbacks Of Traditional Vehicle Architectures Today's commercial vehicle market is thriving, projected to grow significantly in sectors like light commercial vehicles (LCVs), expected to reach over $857 billion by 2033. Middle-mile delivery vehicles, such as box trucks, are also experiencing substantial growth, expected to expand from $113 billion in 2024 to approximately $183 billion by 2029. This expansion underscores the need for manufacturers to adapt swiftly to meet evolving market demands. Yet, amid these promising opportunities, significant challenges persist. Fleet operators and manufacturers alike face increased complexity from diverse customer needs. Delivery fleets, for instance, demand specialized requirements such as climate-controlled compartments for perishable goods, while passenger vans require enhanced safety and integrated comfort features tailored to their unique operational scenarios. Additionally, fleet operators require digital tools, increasingly powered by AI, to optimize vehicle maintenance, enhance driver performance and increase operational efficiency. While traditional vehicle architectures—often characterized by tightly coupled hardware and software—have served the industry well, they are increasingly challenged by dynamic and rapidly evolving demands. Software-defined vehicle architectures offer one response to these pressures, providing a more flexible foundation for updates, services and innovation. Making The Shift To Software-Defined Vehicles The shift toward SDVs is not just a trend. For many commercial vehicle manufacturers, it has become a strategic imperative. At the core of SDV architecture is the decoupling of hardware and software, enabling centralized computing and over-the-air (OTA) updates. This transition can unlock a range of operational and commercial advantages uniquely suited to commercial fleets. However, making the transition is not without challenges for OEMs and suppliers. Incumbent OEMs must contend with legacy vehicle architectures, hardware-centric development methodologies and production processes, even as they transition to software-centric paradigms. Traditional product cycles are lengthy and often limited by the ability to secure the necessary hardware before software development can commence. In contrast, decoupling software from hardware in SDVs enables the development process to 'shift left,' allowing OEM engineers to work on next-generation vehicle functionality in advance of vehicle systems being in place. The other challenge incumbent OEMs face is organizational. Aside from having to hire software talent rather than mechanical and mechatronic engineers, OEMs have long operated in functional silos that come together only in the final stages of development and production. In a software-centric automotive world, there needs to be strong cross-functional collaboration right from the start to achieve the holistic vehicle innovations promised by the move towards SDVs. Once this transition is successfully made, it helps unlock a range of operational and commercial advantages uniquely suited to commercial fleets. For instance, they enable faster deployment of new features—such as optimized routing, advanced driver assistance or fuel-efficiency modes—without requiring recalls, aligning with fleet expectations for continuous digital upgrades. OEMs can also tap into new revenue streams through software subscriptions, usage-based pricing and performance upgrades that extend beyond the initial sale. Centralized data and diagnostics support predictive maintenance to minimize costly downtime, and a software-first approach simplifies development across multiple vehicle models, reducing complexity and accelerating time to market. For commercial vehicle OEMs, transitioning to an SDV architecture isn't just about technology—it's about building a future-proof business model that aligns with the demands of modern fleets and unlocks long-term value. The Three Pillars Of A Successful SDV Strategy A successful SDV approach relies on three core technological advancements: modular applications and services, software-configurable vehicle networks and dynamic data management and collection. The resulting flexibility allows OEMs to swiftly and cost-effectively adapt vehicles for a multitude of use cases. Software-configurable vehicle networks transform vehicle architectures by enabling real-time adaptability of electrical and electronic (E/E) systems. The flexibility provided by Ethernet-based networks allows OEMs to add, modify or remove vehicle modules and sensors, accelerating the integration of the latest technologies. This helps reduce wiring complexity, simplifying updates and repairs and improving overall fleet efficiency. Modular applications, containers and microservices allow rapid cloud-native development and seamless deployment of features tailored to customer requirements. Service-oriented architectures (SOAs) facilitate cross-domain integration, tying together various vehicle functions—from powertrain and chassis to infotainment and advanced driver assistance systems (ADAS)—into cohesive, dynamic solutions. This capability enables OEMs to continuously provide post-purchase upgrades, enhancing vehicle functionality and driving additional revenue streams. Dynamic data management further empowers manufacturers with robust, event-driven data collection strategies. OEMs can leverage granular vehicle data to implement predictive maintenance, optimize vehicle performance and enhance safety protocols. Event-driven collection methodologies enable intelligent data gathering precisely when certain conditions occur, streamlining storage requirements and improving data utility. Furthermore, SDVs streamline aftermarket integrations, which are traditionally costly and complex. By enabling plug-and-play compatibility with third-party telematics devices, cargo sensors and auxiliary systems, OEMs can reclaim control of the vehicle ecosystem and capture additional value typically ceded to aftermarket providers. Closing Thoughts While the shift toward software-defined architectures can present benefits, it requires a well-planned strategy. OEMs that successfully approach this transition will be better positioned to secure a competitive advantage, delivering vehicles capable of dynamically adapting to future demands while maximizing current market opportunities. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
News18
a day ago
- Business
- News18
Tata Tech Surges 4% After Q1 Earnings And Optimistic Outlook; Should You Invest?
Last Updated: Shares of Tata Technologies rose over 4% on Tuesday following upbeat commentary from the management despite a soft June quarter performance Tata Technologies Share Price: Shares of Tata Technologies rose over 4% on Tuesday following upbeat commentary from the management despite a soft June quarter performance. The stock climbed 3.52% to hit a high of Rs 742 on the BSE, buoyed by the company's positive tone around future growth prospects. The engineering services company reported a 7.6% quarter-on-quarter (QoQ) decline in constant currency (CC) revenue from its core services business, citing delays in ramp-ups and paused R&D investments by original equipment manufacturers (OEMs) due to tariff-related pressures. However, the management remains confident of a recovery beginning in Q2, backed by a strong order book at the end of the first quarter. Brokerages, however, remain divided. ICICI Securities noted that the company's optimistic outlook has yet to reflect in the numbers and termed the management's FY26 double-digit growth target as ambitious. It expects a 1.5% YoY dip in FY26 dollar revenue and sees maintaining FY26 EBIT margins as a 'tall order." The brokerage retained a 'Sell' rating, valuing the stock at 25x on Q3FY27E to Q2FY28E EPS of Rs 20, with a target price of Rs 510. JM Financial was more constructive, highlighting improved deal wins—six large deals in Q1, the highest in six quarters—as a key confidence driver. It stated that the current OEM project delays appear tactical and temporary, noting there have been no cancellations so far. Despite trimming FY26-28 EPS estimates by 1–3% due to margin revisions, it maintained a 'Buy' rating with an upgraded target of Rs 790 (from Rs 780). On the other hand, PL Capital also maintained a 'Sell' call, projecting a 3% and 1.2% decline in FY26 revenue for the services and consolidated business, respectively, followed by an 11.5% rebound in FY27. It values the stock at 28x FY27E EPS, arriving at a price target of Rs 570. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Zawya
2 days ago
- Automotive
- Zawya
VinFast Advances Ecosystem Strategy in Philippines' EV Catch-Up
MANILA, PHILIPPINES - Media OutReach Newswire - 14 July 2025 - With nearly 19,000 electric vehicles sold in 2024, the Philippines is looking to catch up in Southeast Asia's EV race as ecosystem players like VinFast work to overcome hurdles around charging access, maintenance, and affordability. Emerging Asia's electric vehicle market reached nearly 400,000 sales in 2024[1], but the gains were spread unevenly across the region. In Southeast Asia, Vietnam led the way with nearly 90,000 electric cars sold, accounting for 17.6 percent of the country's car market.[2] Thailand followed closely with just over 70,000 new EVs, accounting for 13 percent of all car sales[3]. Indonesia recorded 49,200 EVs, representing over 7 percent of national sales.[4] The Philippines lags behind. Fewer than 19,000 electrified vehicles were sold in 2024, making up only around 4 percent of new car purchases.[5] Can the Philippines draft a catch-up strategy in Southeast Asia's EV sprint? The short answer is yes, but it needs to work closely with all stakeholders, especially OEMs like VinFast, which is bringing a comprehensive ecosystem designed to address the major concerns of potential EV buyers. The ASEAN EV Race Regional competitors are deploying aggressive strategies to dominate the electric transition. Thailand offers big multi-year tax holidays and targets 30 percent domestic EV production by 2030. Indonesia leverages its world-leading nickel reserves to attract battery manufacturers. Vietnam is using homegrown VinFast as a launchpad into export markets. Manila isn't standing still either, as the 2022 Electric Vehicle Industry Development Act (EVIDA) lays out a roadmap for EV adoption that includes reduced import tariffs, EV-only parking slots, and a requirement for 5 percent of large fleets to be electric. However, the policy offers few supply-side incentives, and so while EV sales have picked up in recent years, they still account for only a single-digit share of total car sales. The country's oil dependency adds pressure. MUFG estimates that a 10-dollar increase per barrel in crude oil would widen the Philippines' current-account deficit from roughly 3.5 percent to over 4.5 percent of GDP.[6] That is a full percentage-point increase, largely driven by fuel imports. The Philippines pledged to trim greenhouse-gas emissions by up to 75% by 2030 under the Paris Agreement. And EV is a big part of this[7]. But electrifying transportation means consumers need more affordable, serviceable zero-emission options. More than that, the government needs partners who can support the full ecosystem, including infrastructure, services, and education, not just the vehicles themselves. VinFast's Whole-of-Ecosystem Approach VinFast vehicles are already on Philippine roads. In July 2024, the company opened its first three showrooms. Almost a year later, the OEM became a full member of CAMPI, giving it a seat at the local policy table alongside other traditional automotive brands. What's notable about VinFast's approach is its effort to build a comprehensive "For a Green Future" ecosystem. The company has partnered with local dealers to open more than 60 new showrooms by the end of the year. Collaborations with tire and maintenance chains like Goodyear and Tire King will extend after-sales service coverage, aiming for over 100 authorized service workshops across the Philippines by 2025. This tackles the "who fixes my EV, and where?" anxiety head-on. VinFast has also launched a free charging program alongside the debut of its VF 6 subcompact model. This initiative allows customers to charge for free at its dedicated network until May 1, 2027. The network, operated by V-GREEN, aims to roll out 15,000 charging ports across the country in 2025. VinFast's strategy targets three major EV adoption barriers all at once. It eases range anxiety through accessible charging, tackles maintenance fears with a broad service network, and addresses upfront cost concerns through policies such as a buyback program that offers up to 90 percent of the vehicle's original value. Even without building a local factory, VinFast's ecosystem creates jobs in sales, repairs, software, and charging infrastructure. This supports Manila's EVIDA goals, helps reduce urban pollution, and contributes to lowering oil dependence. Another hidden challenge to EV adoption and one VinFast aims to solve is lack of familiarity, which, according to some studies, is actually the largest barrier. One American study found that once drivers experience EVs firsthand, concerns about range, costs, and charging drop significantly[8]. To help bridge that gap, VinFast is working with various B2B partners and mobility service providers that are helping make electric vehicles more visible and accessible in everyday life, including Green GSM, the Philippines' first all-electric taxi service, which recently launched on June 10, 2025. By interacting with Green GSM drivers, all of whom operate VinFast vehicles, everyday commuters are given a practical and low-barrier introduction to EVs. These conversations can help the public understand how EVs work, what they feel like to drive one, and why they might be worth considering. Eventually, that exposure could encourage more people to make the switch. In Southeast Asia's e-mobility race, the Philippines may lack a domestic factory. Still, VinFast's ecosystem-focused approach gives the country a real opportunity to catch up and perhaps even pull ahead. [1] [2] [3] Same as #1 [4] Same as #1 [5] [6] [7] [8] Hashtag: #VinFast The issuer is solely responsible for the content of this announcement. VinFast
Malay Mail
2 days ago
- Automotive
- Malay Mail
VinFast Advances Ecosystem Strategy in Philippines' EV Catch-Up
VinFast EV manufacturing complex in Hai Phong, Vietnam MANILA, PHILIPPINES - Media OutReach Newswire - 14 July 2025 - With nearly 19,000 electric vehicles sold in 2024, the Philippines is looking to catch up in Southeast Asia's EV race as ecosystem players like VinFast work to overcome hurdles around charging access, maintenance, and Asia's electric vehicle market reached nearly 400,000 sales in 2024[1], but the gains were spread unevenly across the Southeast Asia, Vietnam led the way with nearly 90,000 electric cars sold, accounting for 17.6 percent of the country's car market.[2] Thailand followed closely with just over 70,000 new EVs, accounting for 13 percent of all car sales[3]. Indonesia recorded 49,200 EVs, representing over 7 percent of national sales.[4]The Philippines lags behind. Fewer than 19,000 electrified vehicles were sold in 2024, making up only around 4 percent of new car purchases.[5]Can the Philippines draft a catch-up strategy in Southeast Asia's EV sprint? The short answer is yes, but it needs to work closely with all stakeholders, especially OEMs like VinFast, which is bringing a comprehensive ecosystem designed to address the major concerns of potential EV competitors are deploying aggressive strategies to dominate the electric transition. Thailand offers big multi-year tax holidays and targets 30 percent domestic EV production by 2030. Indonesia leverages its world-leading nickel reserves to attract battery manufacturers. Vietnam is using homegrown VinFast as a launchpad into export isn't standing still either, as the 2022 Electric Vehicle Industry Development Act (EVIDA) lays out a roadmap for EV adoption that includes reduced import tariffs, EV-only parking slots, and a requirement for 5 percent of large fleets to be electric. However, the policy offers few supply-side incentives, and so while EV sales have picked up in recent years, they still account for only a single-digit share of total car country's oil dependency adds pressure. MUFG estimates that a 10-dollar increase per barrel in crude oil would widen the Philippines' current-account deficit from roughly 3.5 percent to over 4.5 percent of GDP.[6] That is a full percentage-point increase, largely driven by fuel Philippines pledged to trim greenhouse-gas emissions by up to 75% by 2030 under the Paris Agreement. And EV is a big part of this[7]. But electrifying transportation means consumers need more affordable, serviceable zero-emission options. More than that, the government needs partners who can support the full ecosystem, including infrastructure, services, and education, not just the vehicles vehicles are already on Philippine roads. In July 2024, the company opened its first three showrooms. Almost a year later, the OEM became a full member of CAMPI, giving it a seat at the local policy table alongside other traditional automotive notable about VinFast's approach is its effort to build a comprehensive "For a Green Future" ecosystem. The company has partnered with local dealers to open more than 60 new showrooms by the end of the year. Collaborations with tire and maintenance chains like Goodyear and Tire King will extend after-sales service coverage, aiming for over 100 authorized service workshops across the Philippines by 2025. This tackles the "who fixes my EV, and where?" anxiety has also launched a free charging program alongside the debut of its VF 6 subcompact model. This initiative allows customers to charge for free at its dedicated network until May 1, 2027. The network, operated by V-GREEN, aims to roll out 15,000 charging ports across the country in strategy targets three major EV adoption barriers all at once. It eases range anxiety through accessible charging, tackles maintenance fears with a broad service network, and addresses upfront cost concerns through policies such as a buyback program that offers up to 90 percent of the vehicle's original without building a local factory, VinFast's ecosystem creates jobs in sales, repairs, software, and charging infrastructure. This supports Manila's EVIDA goals, helps reduce urban pollution, and contributes to lowering oil hidden challenge to EV adoption and one VinFast aims to solve is lack of familiarity, which, according to some studies, is actually the largest barrier. One American study found that once drivers experience EVs firsthand, concerns about range, costs, and charging drop significantly[8].To help bridge that gap, VinFast is working with various B2B partners and mobility service providers that are helping make electric vehicles more visible and accessible in everyday life, including Green GSM, the Philippines' first all-electric taxi service, which recently launched on June 10, interacting with Green GSM drivers, all of whom operate VinFast vehicles, everyday commuters are given a practical and low-barrier introduction to EVs. These conversations can help the public understand how EVs work, what they feel like to drive one, and why they might be worth considering. Eventually, that exposure could encourage more people to make the Southeast Asia's e-mobility race, the Philippines may lack a domestic factory. Still, VinFast's ecosystem-focused approach gives the country a real opportunity to catch up and perhaps even pull #VinFast The issuer is solely responsible for the content of this announcement.
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Business Standard
3 days ago
- Automotive
- Business Standard
Q1 results preview: Low volumes, discounts may have dented auto margins
Downside risks from rare-earth magnets an overhang for the sector premium Listen to This Article The first quarter (Q1) performance of auto original equipment manufacturers (OEMs) in 2025-26 (FY26) is likely to be impacted by factors like muted volumes, commodity inflation, shortage of rare-earth magnet components, discounts and dent on exports due to the Iran-Israel conflict. Analysts feel that revenue growth for OEMs is likely to be in the range of 4-8 per cent year-on-year (Y-o-Y), varying with the coverage mix. And, margins are likely to taper owing to commodity inflation, negative operating leverage, and changes in regulatory norms. Axis Securities said in its report that it expects the revenue for its OEM coverage universe
