Stellantis plans to generate $ 22.5 billion in new software revenue by 2030.

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Automaker Stellantis plans to generate approximately $ 22.5 billion (€ 20 billion) in annual revenue from software services and subscriptions by 2030, the company announced Tuesday.

According to Stellantis, growth will be driven by an increase in so-called connected cars from automakers equipped with GPS, infotainment systems, driver assistance and other technologies, rising from the current 12 million to 34 million. To do.

Stellantis, the world’s fourth-largest automaker, is a state-of-the-art company with the goal of significantly increasing service revenues to further diversify market opportunities and revenues.

Other automakers, from BMW to General Motors to Ford Motor, have announced similar steps following Tesla’s recent growth and popularity. EV car makers are considered industry leaders in services and technology, offering vehicle updates remotely or wirelessly years before other cars.

Stellantis said it expects a “majority” of new cars to support OTA updates by 2024.

Vehicles with wireless updates are seen as the key for automakers to generate recurring revenue through all new technologies and subscriptions, from video entertainment to driving assistance features.

Software services were part of a previously announced plan by automakers to invest € 30 billion in advanced technology and vehicle electrification.

Stellantis said he hopes to use these funds to hire more software engineers who can develop new technologies internally and through partnerships with other companies.

The company signed a non-binding memorandum of understanding with iPhone maker Foxconn on Tuesday to build a partnership aimed at designing a new family of semiconductors to support Stellantis and third-party customers. I also announced that I did.

Stellantis has also partnered with BMW and Alphabet’s Waymo to develop advanced driver assistance systems to combat Tesla’s Autopilot and other systems.

Stellantis is a merged automaker of Fiat Chrysler and France-based Group PSA. There are 14 individual car brands such as Alfa Romeo, Chrysler, Fiat, Jeep and Peugeot.

The company announced plans with Stellantis CEO Carlos Tavares and other executives ahead of “Software Day” on Tuesday.

Stellantis plans to generate $ 22.5 billion in new software revenue by 2030.

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