This year’s Automotive Europe 2025 conference in Stuttgart has emerged as a pivotal gathering for the automotive industry.
Transition to EVs and embracing AI
Innovation, in particular navigating the transition to EVs and embracing AI were key topics at this year’s conference. BYD’s announcement that it plans to introduce two additional plug-in hybrid models in Germany this year, highlighted the Chinese OEM’s focus on strengthening its European presence.
Meanwhile, on the AI side, there were sessions focused on how AI-driven automation and advanced robotics are enhancing efficiency, product quality and cost-effectiveness. It follows the launch of InvestAI, a European Commission initiative in February, which aims to accelerate artificial intelligence adoption in industries, including automotive manufacturing.
At the Stuttgart conference, European OEMs were urged to move fast and integrate GenAI into their vehicles now or risk being left behind. The impact of the technology was highlighted by BMW this week. The car maker demonstrated how a solution developed at their plant in Regensburg as part of the “GenAI4Q” pilot project is delivering tailored inspection recommendations for the 1,400 vehicles manufactured there daily.
Keeping the consumer front of mind
With the EU mandate that 20% of automakers sales must be fully electric this year, the ongoing volatility around US tariffs and Chinese OEMs leaning into new markets, European and US OEMs must stay focused on the value that they can extract from the software-defined vehicle (SDV). In particular, how to deliver the best and consistent user experience for their drivers.
On Tuesday André Schlufter, Cubic3’s Director of Automotive Innovation, spoke on Automotive Europe’s panel ‘Enabling the in-cabin experience: how connectivity and data deliver better personalised experiences.’ Joined by speakers from Hyundai and Mercedes-Benz he outlined how connectivity is the bedrock on which these enhanced experiences rely.
By 2030 95% of all new vehicles sold globally will be connected, seamless connectivity is central to how OEMs deliver better, more tailored services. By providing a seamless customer experience automakers will garner greater customer loyalty, in particular adoption and willingness to pay for in-car services.
Our ‘Consumer and OEM attitudes to software-defined vehicles – Global report’ indicates that despite software-defined vehicles (SDVs) still being relatively new, 1 in 4 consumers are paying for digital services already and this rises to 44% for 18–24-year-olds. This is encouraging as these digital natives are the drivers of the future.
Our research also indicated significant regional difference in driver appetite for in-car digital services, with customers in Asia expressing more interest in them than that of their European counterparts. This is due to app developers in the US and Europe focusing solely on creating services for smartphones as opposed to the connected car. This differs from China where demand for rich in-car digital experiences has led to faster adoption of integrated in-car digital ecosystems and more vehicle-led app development.
However, things are changing in the US and Europe. App providers are realising that cars are no longer just vehicles, but digital experience hubs and they can see the value of creating bespoke services beyond simply mirroring a smartphone screen.
It’s clear the in-car experience is a unique space, one that automakers need to manage carefully if they want to drive long term growth. By aligning the physical and digital experiences in the cabin through native and integrated in-car services OEMs can deliver the enhanced experience their customers desire.
Cubic3’s advanced software solutions enable this. With Explore3 OEMs unlock key insights into the user experience enabling them to deliver more tailored in-car services. While DriverConnect3, our service enablement solution, helps OEMs offset rising connectivity costs by helping them monetise their customer throughout the vehicle lifecycle. Simplifying how OEMs enable their consumers to access in-car apps and content streaming services, it provides control of the user experience while also delivering a consistent, connected experience across different markets.
Read our Consumer and OEM attitudes to software-defined vehicles – Global report
