Software is finding a growing presence in cars today, which will eventually get upgraded over time. In fact, over the years, car manufacturers have invested millions in the R&D of automotive software. And automotive OEMs are competing with tech giants to produce operating systems for the car. Ivo Ivanov, CEO, DE-CIX International, discusses why OEMs need to be in control of the data journey of their cars, why the type of usage of the car or the special mobility packages will become more essential down the line and if there really will be a software war in the near future.

The cars of the future will be highly interconnected, and we’ll see real-time data exchange. A couple of years ago, automotive OEMs were focused on the engine, shape, the mechanical part of the car etc. However, they have now understood that the digital part of this business will drive them more successfully into the next century. There is a huge appetite for control of data by the OEMs, not just of the software but the infrastructure as well.

In fact, automotive companies have already started turning into software companies. Ivo Ivanov, CEO, DE-CIX International, mentions that automotive OEMs plan to create an independency from operating systems like iOS or android, so as to have their own software-driven platform – and this is valid for all major automotive companies, from Honda to Toyota, which is a market reality. At the same time, we also see automotive OEMs partner with companies like Google or Amazon, because of their cloud capabilities. While this sure is the case, it doesn’t tell us that the automotive OEMs will stop creating their software independency.

“If you ask me about software, I truly believe that we will see the so called ‘software war’ in the near future,” Ivanov expresses and continues, “They will collaborate if it comes to cloud resources and cloud computing resources for their manufacturing platforms. However, if it comes to creating and increasing the control of the data gateway related to the digital car, then we will definitely see a future competition between the propitiatory software developments of companies like Volkswagen, BMW etc. (you name them) and the established operating system providers like Apple or Google.”

OEMs in control of the data journey – why is it needed?
While the automotive OEMs can easily go to the software companies, it comes down to who controls this. “If the software related to the car remains in the hands of the existing players, then the OEMs will have to share a bigger portion on the assets with those companies,” Ivanov enlightens and adds, “They can share if needed, but the question remains of who has the majority in that stake. They want to increase their margin on the digital assets related to the car and become the major stakeholder in that domain.”

Ivanov further informs that, moreover, those who want to be extremely successful in the future must make themselves capable of doing this. “Because if they do not create this controllability of the data journey, they will not be able to create digital assets,” he puts across and adds, “An OEM can grow its value as a company on the stock exchange if it is able to provide the market with a story that is futuristic and can create a value in the future. And the OEMs will not be able to differentiate in the future with the quality of the car seats, engines, shape of the car etc. alone – they will be able to differentiate with smart digital concepts for mobility solutions in our digital lives.”

Citing a relevant example in this context, he asserts, “Let’s think about the metaverse, or the truly and entirely digitalised environment; we see companies like McLaren and Porsche that have already started creating their digital twins for the metaverse. It eventually comes down to access to the customers. The OEMs have the cars and the customers are the users of the cars.”

OEMs developing their own software – is it safe?
However, even companies like Tesla have their share of failures in vehicle software, with there being investigations into Tesla’s driver enhancement software following a spell of documented malfunctions. So, what can one say when it comes to smaller OEMs?

“It’s a normal process of improving your code, its security and the software. It’s what Microsoft, Apple, Google etc. have been dealing with for decades now. In fact, the OEMs will catch up much faster because they have the money to make sure that they hire efficient people and acquire other companies. And also, again, they have access to the end-users,” explains Ivanov.

Control of the data journey and infrastructure
The OEMs have the cars, the customers and the users of the car. These OEMs want to control the framework and will integrate existing solutions and other elements but want to be in control of the data journey, which is the asset. “The assets are the tonnes of data produced by the car,” Ivanov shares and goes on, “Hundreds of thousands of organisations around the world are trying to get involved in this huge and tremendous business surrounding data – the data getting into the car and the data being produced in the car. This is what the OEMs aim for.” Ivanov further clarifies that the OEMs will probably not write the code for everything from zero, but they sure will want to control the framework. “But the knowledge of where exactly the data comes from in the car and where the data goes from out of the car, then they will be able to turn themselves into the gatekeepers of the data journey and create their virtual and digital assets around this driver behaviour. And I believe that it’s not the ownership of the car in terms of legal rights of owning the car, but the type of usage or the special mobility packages that will become more essential.”

Not just software, but chips too
According to market research firm Gartner, by 2025, fifty percent of the top 10 automotive OEMs will design their own chips. Ivanov envisions that what we have seen with the battery production for electric cars, will happen in the case of chips too. “All of the dominant OEMs, from Tesla to BMW to Mercedes to Volkswagen, have already started heavily investing in their own battery manufacturing assets. In some cases, they collaborate with existing battery manufacturers, or in other cases, they create their own battery factories,” Ivanov asserts and adds, “So we see a similar development in the chip industry. That’s because the chips in the connected car and the whole mobility concept around the future of OEMs are nothing but the new engine.”

A leading position
Software is certainly transforming the automotive world. And yes, major automotive OEMs are now seriously investing in new software platforms. The software and infrastructure together, undoubtedly, will empower automotive OEMs to be the gatekeepers in this data journey and provide them with the level of controllability of the data journey that they need to create virtual and digital assets for their shareholders. Software is definitely one of the main differentiators, creating a leading position in automotive OEMs.

Mumbai-based automotive major Mahindra & Mahindra has announced its wholesales for April 2025 at 84,170 vehicles, a growth of 19 percent, including exports.

The auto major sold a total of 52,330 SUVs in the domestic market, which was 28 percent higher than 41,008 SUVs sold for the same period last year. Commercial vehicle sales in the domestic market came at 22,989 units, which was 4 percent YoY. 

Veejay Nakra, President, Automotive Division, Mahindra & Mahindra, said, “Building on the strong momentum of last year's performance, we began the year on a strong note in April by achieving SUV sales of 52,330 units, a growth of 28 percent and total vehicle sales of 84,170 units, a 19 percent growth over the same month last year. These numbers indicate the strength of our portfolio and customer offerings.”

JSW MG Motor India, a leading passenger vehicles manufacturer, has announced its wholesales for April 2025.

The company reported sales of 5,829 units, which was 23 percent higher over April 2024, when it sold 4,725 vehicles.

Interestingly, the automaker's popular offering, the Windsor EV, has continued to be the top-selling electric passenger vehicle for the seventh month in a row.

JSW MG Motor India's Windsor EV has now gone home to over 20,000 customers.

Maruti Suzuki India, the country’s largest carmaker, has reported its wholesales of 179,791 units in April 2025, marking a 7 percent increase compared to 168,089 units sold in April 2024. The growth was primarily propelled by strong performance in utility vehicles and a sharp rise in export volumes.

Domestic sales, including passenger and light commercial vehicles, remained flat with 142,053 units, as compared to 140,448 units in April 2024. Within this, light commercial vehicles (LCVs) like the Super Carry saw a significant jump of 34.2 percent, with sales rising to 3,349 units from 2,496 units last year.

In the passenger vehicle segment, SUVs such as the Brezza, Ertiga, Grand Vitara and others recorded a 4.4 percent increase, selling 59,022 units compared to 56,553 in the previous year. However, sales for Eeco declined by 5.2 percent, while the mini segment (Alto, S-Presso) saw a sharp 45 percent drop, falling to 6,332 units from 11,519 units. The compact segment, which includes high-volume models like the Baleno and Swift, grew by 8.1 percent, reaching 61,591 units.

Sales to Toyota Kirloskar Motor rose sharply by 79.2 percent, from 5,481 units to 9,827 units, indicating a growing demand for cross-badged products.

The standout performer was the export segment, which surged 26 percent to 27,911 units from 22,160 units in April 2024. This strong export growth helped bolster the company’s overall numbers despite weaknesses in domestic sub-segments.

While some product lines such as the mid-size sedan Ciaz (-63 percent) continue to struggle.

Tata Motors reported total wholesales of 72,753 units for April 2025, reflecting a 6 percent year-on-year decline from 77,521 units in April 2024.

The passenger vehicle (PV) segment, including electric vehicles, accounted for 45,532 units, down 5 percent from 47,983 units in the same month last year. Within this, domestic PV sales dropped 6 percent to 45,199 units, while international business (IB) sales rose significantly to 333 units, up from 100 units. Electric vehicle sales (domestic + IB) declined 16 percent year-on-year to 5,318 units.

Commercial vehicle (CV) sales stood at 27,221 units, marking an 8 percent YoY drop from 29,538 units in April 2024. Domestic CV sales contracted 10 percent to 25,764 units, while CV exports (IB) grew 43 percent to 1,457 units. Key sub-segments like Small Commercial Vehicles (SCV) and pickups saw a steep 23 percent decline.

Despite growth in certain categories like ILMCV trucks and passenger carriers, overall sales momentum was tempered across both PV and CV segments.