Software functions are playing an increasingly important role in cars. But how long will buyers continue to receive updates? This could have consequences for the attractiveness of used cars.
Without software goes in electric cars nothing more. This will even increase in the future, for example through autonomous driving. But anyone who has a smartphone knows the problem: After three or four years, many providers stop using software updates. Although the phone still works, the apps that are no longer supported on the outdated operating system are gradually saying goodbye. So is there a risk of such a scenario also for buyers of e-cars?
Update maintenance is a big problem for all software and hardware providers. Different versions, rarely compatible with each other, need to work and communicate with each other. While a computer crash due to software problems is still bearable, this must not happen with a car. But supporting legacy software is expensive and time-consuming.
Is 15 years enough?
With such highly complex systems as the software in an electric car, the question quickly arises as to how long there will be updates for the owner and how long the vehicle can be safely on the road. After all, different systems have to communicate with each other. If the lane assistant no longer understands the electronic steering that is often used today, it becomes dangerous.
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Many manufacturers are still keeping a low profile at the moment. Anyway VW has already communicated, wanting to supply its systems with the necessary security updates for at least 15 years. Of course, at some point there will no longer be any new software features. But at least the software stays up to date and safety in the vehicle is guaranteed. But is 15 years enough?
The average age of the passenger car fleet in Germany is around ten years. In the future, customers will get support for a few more years, at least from VW, even for a cheap used car. There are still question marks with other manufacturers. One thing is clear: the more expensive the car, the longer it will receive updates. It will then be more difficult for cheap vehicles. It doesn’t matter whether the update comes directly from the manufacturer or from a supplier. Because they can be paid heavily for the support and with cheap cars that cuts into the margin of the manufacturer.
Market niche for founders
The good news: This results in a gap in the market for founders. Startups that focus on supporting old used cars, for example, offer promising earning opportunities. The prerequisite is that the manufacturers then make their software available at least for classified partners. The advantage for the manufacturers: they can get rid of a considerable cost factor and partly shift the liability to the software partner.
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In fact, the market is already lucrative today. Since the 1990s, more and more electronic components have found their way into cars. Many of these are no longer manufactured. Nevertheless, there are enough enthusiasts who continue to supply the vehicles to this day. Corresponding spare parts have so far been found either in scrap yards or online portals such as Ebay.
But it’s even bigger: The Danish startup Autoparts24 for example, discovered the gap ten years ago and thus opened up a large market in Europe. The company will also benefit from the fact that combustion vehicles will be built in smaller numbers in the next few years and that many people do not want to make the leap to electric cars. Since the spare parts for these cars are sometimes hard to come by, the company has bright prospects.
Don Dahlmann has been a journalist for over 25 years and has been in the automotive industry for over ten years. Every Monday you can read his column “Torque” here, which takes a critical look at the mobility industry.