Better late than never.
- Despite endless delays, Android Automotive is finally getting some mass-market traction as it is confirmed for the 2022 Volvo XC60 which is the first combustion engine model to be confirmed for Android Automotive.
- This is significant because, despite all the hype, noise and fuss surrounding electric vehicles, they are going to remain a small part of total vehicle shipments for some time to come.
- Furthermore, OEMs have realised that to build a decent EV, one needs to rebuild the vehicle platform from scratch which has offered a great opportunity to also add digitisation at the same time.
- This is why RFM thinks that electrification and digitisation of the vehicle go hand in hand and hence there are minimal returns to be had in digitising legacy platform due to their limited life spans.
- There are plans to also add Android Automotive to the S90 and V90 but with no actual models announced, I will take this with a pinch of salt.
- This is because Volvo is so far the only one that has really followed through on its announcement and I get the distinct impression that both Audi and the Renault Nissan Mitsubishi alliance have quietly shelved their plans to use it.
- To date, implementations of Android Automotive in vehicles have been limited to high-end EVs where volumes are likely to be low compared to petrol vehicles.
- I have long viewed this as a way for OEMs to test the water with Android Automotive without risking their core business.
- EVs are going to be low volume for some time to come and this gives the OEM the opportunity to see how Android Automotive will work for them without having to make a big commitment to volume over the next few years.
- However, this is a dangerous game because should users decide that they love Android Automotive with Google services embedded in the dashboard more than whatever the OEMs can come up with, then they will have lost what little market power that they had.
- In this instance, they will become nothing more than handsets on wheels with Google owning the customer relationship and possibly all the data that the vehicle generates.
- With Android Automotive, vehicle makers will be left earning a tiny fraction of the digital service opportunity in the vehicle with the lion’s share going to Google.
- I suspect that this is exactly Google’s strategy and that it sees vehicles like handsets in that they are just another device through which to deliver its ecosystem.
- Currently, the OEMs have a lock on the vehicle data that makes these services possible, but the more consumers begin to prefer Google in the vehicle, the weaker this lock becomes.
- Some OEMs might say that a small slice of something is better than a big slice of nothing, but a small slice is not going to be enough to rescue them from the collapse in vehicle demand that RFM forecasts once EVs have gone mainstream.
- This is why I still think they will be better off seeking an alternative that lets Google in, to some degree, but keeps all the control points firmly in their hands.
- There are some signs of this as the statements from GM and Ford (see here) are very carefully worded such that it is not difficult to see how the OEMs will be very carefully managing what vehicle data Google has access to and what it does not.
- In these agreements, it appears that there is nothing to prevent OEMs from making enough alterations such that Google is as locked out of the vehicle data as it is today with Android Auto.
- RFM has long believed that the one thing that can save the OEMs from long-term declines in vehicle shipments is digital services meaning that letting Google into one’s vehicles is like letting the fox into the hen house.
- All it takes is one “would you like Google to make your services better?” notification from Google followed by “yes” from the user for Google to be able to virtually wipe the OEM from the infotainment unit.
- This is no big secret, and this combined with Google’s terms and conditions are probably what has made those that have signed up, think twice about letting this out into the wild.
- This is why letting Google loose in the petrol fleet is significant as it signals that Volvo is now comfortable with its relationship with Google and is ready to roll it out much more widely.
- This does not mean that others are going to follow but if it becomes popular, there is a risk that the others are forced to fall into line or face losing market share.
- Google’s voyage to turn the OEMs into handsets on wheels has taken a step forward.
