Imagine your car sitting on the driveway increasing in value without you doing much.
In today’s world of ultra-modern cars, it is possible for your vehicle to add value while you sleep, and it’s all thanks to over-the-air (OTA) updates.
It was Tesla that particularly pioneered the ‘software-defined vehicle’ (SDV), an innovation that allows for over-the-air updates, meaning cars can improve their functionality after purchase without a trip to the dealership.
Now it’s so ubiquitous that a recent report stated ‘software is the new horsepower’.
So, what is this remote wireless software and how do connected vehicles work? We take a look at software-defined vehicles and the potential of OTAs.
Over-the-air software updates are becoming a norm for modern cars, in a similar way to smartphones and laptops updating constantly
What are over-the-air updates?
Over-the-air updates keep your car’s software up-to-date.
They’re software downloads that happen remotely in a car and are delivered using wi-fi or mobile signal thanks to the car’s onboard Sim card.
In a similar way to how a smartphone or laptop updates while you sleep, modern cars can update overnight to the latest technology – your vehicle will receive the most up-to-date features, security improvements and enhancements.
Software updates are the standard – these improve infotainment and navigation systems among others – but it’s becoming increasingly common to get firmware-over-the-air upgrades too (these control car’s basic functions).
A recent example of OTAs in action is the Tesla holiday update in the run up to Christmas.
The free of charge update brought new features and enhancements to Tesla vehicles – from Apple Watch integration which allowed Tesla owners to use their Apple Watch as their car’s phone key, to improved safety warnings when reversing that keep pedestrians safe.
Which cars are able to receive OTA updates?
A major new OTA update allows Tesla owners to use their Apple Watch as the phone key with the new Tesla App
Another software update means your Tesla will trigger an alert if a pedestrian or vehicle crosses behind your car while you’re reversing
Nearly all manufacturers offer OTA updates in at least some of their vehicles these days.
Mercedes, Audi and BMW and Stellantis offer navigation and infotainment OTAs and some optional features, while Jaguar Land Rover also offers charging capability upgrades.
Other manufactures such as Volvo, and especially EV brands like Polestar and Tesla, offer OTAs across nearly every vehicle component and system.
The exact year and model which run OTA updates vary from marque to marque – Kia for example states that all cars from model year 2022 onwards are able to receive over-the-air updates – but you’ll be able to check this when you buy your car.
How do they work? Do I have to manually install anything?
The four steps of a Kia OTA update for the new EV9 – it’s very similar to how a smartphone update works
If your car is eligible for OTAs then the process of upgrading your car itself is remarkably easy.
Just like your smartphone lets you know that there’s an update ready to install – i.e. the latest iOS for Apple products – your car will prompt you when it has downloaded an OTA and it’s then ready to install.
All you have to do is accept the terms and approve the update and your car will do the rest. You don’t even have to consent to the update via the car’s infotainment system – you can do it remotely via your car’s mobile app.
Generally updates take about 60 minutes, but it can be longer for more complex updates.
Precise instructions, for instance whether you can drive your car while it’s updating, or if you need to lock and leave it, will be supplied by your car. Once the OTA is complete your car will tell you and you’ll usually get an email confirmation too.
Are OTA updates needed? Do they improve my car?
In a software-defined vehicle, like with your computer or smartphone, the embedded software that’s fully integrated needs to be updated in order to improve operation and functionality.
It’s not just about adding the latest comfort features, OTAs make sure your car keeps running optimally.
What are the benefits of OTA updates?
Firstly, OTAs can resolve and fix issues easily and quickly. Any bugs and software issues can be corrected to make sure your car performs at its best.
Then there’s the helpful fact that OTAs mean you don’t have to go to a dealership or go through a manual process, which saves time, money and hassle.
Thirdly, OTAs bring updated performance and safety features to your car and will optimise the functionality of the car and its systems.
Looking ahead with artificial intelligence in mind, vehicles will be able to use AI to detect and transmit diagnostic and operational data and detect any issues before they snowball, essentially working as a preventive maintenance system.
And finally, there’s the ability for OTAs to add value to your vehicle.
How can OTA updates increase the value of my car?
By allowing drivers to add new features to a car, OTAs can add value to your car with minimum effort – throughout the life cycle of the vehicle.
The Ericsson Connected Cars report found that, by 2025, 50 per cent of the vehicle value will be composed by the software and software experience – which OTAs enable.
Even after the car’s been sold for the first time these updates can generate additional revenue.
And with OTAs now expanding into performance upgrades or even fuel efficiency improvements, upgrades can make a car more desirable and can positively impact its value retention.
Gartner Digital Automaker Index 2024 noted that EV makers have already begun offering horsepower upgrades for a subscription fee – something that will add value the next time the car’s sold.
Not to mention that autonomous software updates are rolling out these days, which will add additional value.
Do I have to pay for OTA updates? How much do they cost?
Drivers must pay a monthly subscription and like adding extras to a car to upgrade BMWs – but some manufacturer offer upgrades for free
This really depends on the car manufacturer and what you sign up to when you buy your car.
Some manufacturers offer free trials to new customers; Kia for example offers a free one-year OTA Updates trial.
Once free trials or deals are completed then customers could be charged a subscription fee.
Many individual OTA updates, such as the previously mentioned Tesla update are offered free to owners. However other times Tesla have charged owners for updates; in 2019 an acceleration boost update cost £1,500.
In 2022 BMW asked drivers to pay for heated seat upgrades via a monthly subscription scheme: the BMW store offers a one-month free trial and then costs £10 for a month, £100 for a year, ranging up to £200 for unlimited access.
Can I opt out of OTA updates?
You have to enroll and accept the OTA terms of service to receive the updates.
Each individual update will require you to confirm you’re happy to install it and there’s typically the option to postpone.
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