On Wednesday, Wards Intelligence, now a part of Omdia, released its annual Software-Defined Vehicle (SDV) ranking, revealing a shift in the technological innovation landscape. Tesla (NASDAQ:TSLA), while maintaining its overall lead, has been overtaken by NIO and Xiaomi (OTC:XIACF), which now rank second and third, respectively. The SDV ranking is a measure of automotive companies’ progress in developing vehicles that are heavily based on software capabilities.
Xpeng (NYSE:XPEV) and Rivian (NASDAQ:RIVN) hold the third and fourth positions, respectively, placing them in the Leaders category alongside Tesla, NIO, and Xiaomi. Companies in this group are recognized for their focus on a software-first approach and lack of legacy constraints, driving forward the boundaries of SDV innovation. Principal Analyst Maite Bezerra from Wards Intelligence emphasized the significance of these automakers in refining and scaling SDV-related technologies.
The Strong Contenders category, which includes brands like Zeekr, Lucid (NASDAQ:LCID), Leapmotor (HK:9863), and BMW (ETR:BMWG), has seen 67% of its automakers actively commercializing SDVs, marking a considerable shift from the previous year. Bezerra pointed out that companies such as BYD (SZ:002594) within this category are poised to challenge the market leaders due to their rapid advancement in SDV technology.
In the Contenders category, which features Hyundai (OTC:HYMTF), the Volkswagen (ETR:VOWG_p) Group, and General Motors (NYSE:GM), there has been a noticeable increase in the deployment of semi-SDVs and the development of more comprehensive SDV strategies. Despite this progress, these automakers must still make significant strides to bring full SDVs to production. The Followers category, which previously included OEMs without public SDV roadmaps, has begun to establish clear SDV objectives in reaction to the market’s rapid evolution.
The evaluation of SDV progress is complex, with inconsistent definitions and benchmarks. To mitigate this, Wards Intelligence conducts extensive research annually, using advanced statistical tools to determine the most accurate indicators of SDV advancement. In the latest edition, 27 automakers were assessed across five metrics, including financial strength, portfolio complexity, vehicle platform readiness, organizational readiness, and SDV performance.
Bezerra highlighted that 62% of automakers in the Leaders and Strong Contenders categories are Chinese or Chinese-owned, underscoring China’s growing dominance in the SDV segment. Additionally, only three of the 14 automakers in these top categories are established Western companies, indicating a continued trend towards Chinese leadership and the ongoing challenges Western automakers face in adapting to the SDV market in 2025.
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