Digital Automotive – Baby steps.

BMW takes another baby step.

• Not only is Car Play now free but BMW will now also add Android Auto to its vehicles from 2020 in a move that clearly shows that digital is becoming an important part of the purchase decision.
• Vehicles are predominantly purchased on their looks, performance, safety and economy but increasingly, offering access to the user’s Digital Life in the vehicle is becoming important.
• Clearly, the lack of Android Auto in its vehicles was becoming a reason not to by a BMW which is what has pushed BMW to offer it.
• BMW and the rest of the OEMs have been so cautious (rightly so) about Android Auto that it utterly failed to achieve its aim.
• The original idea was to allow Google services running on the smartphone to be presented on the head unit but at the same time to more deeply integrate vehicle functions and data.
• However, the nature of Android Auto has meant that it has been a simple task for the OEMs to completely lock Google out of any of the vehicle functions.
• The result is that Android Auto has been relegated to merely a remote projection system by which Android apps running on the phone are projected onto the infotainment unit screen and have access to speakers, microphones and the vehicle’s GPS antenna.
• Consequently, Android Auto is not a threat for the OEMs whose opportunity in digital services lies in leveraging the unique data set that the vehicle generates to offer new and intelligent services.
• The failure of Android Auto to win Google access to the vehicle data is why Google switched strategies and came up with Android Automotive.
• Android Automotive is completely different in that the whole infotainment unit software is replaced with Android with Google services embedded.
• This means that Google will have access to all of the data in the vehicle and the OEM will have surrendered much of the differentiation that would have allowed it to offer unique services.
• Some OEMs are toying with this as their own offerings have been so bad that they figure that a small percentage of something is better than 100% of nothing.
• RFM research indicates that the Digital Life of the driver is dominated by Navigation and Media Consumption (audio) which both Apple and Google provide extremely well.
• However, the real opportunity for OEMs lies in merging the personal preferences of the vehicle and its occupants with the data generated by the vehicle to provide new services.
• Automated parking reservations and guidance would be a good example of something I think most drivers would be willing to pay for.
• This is why OEMs have to maintain control of vehicle data as it ensures them a seat at the table even if they are not providing the services themselves.
• Selling out to Google turns a vehicle into an Android handset on wheels.
• Android Auto is not a threat but Android Automotive is which is why I do not expect to see BMW go any further than Android Auto.
• This is another baby step by BMW which is good news but more and quickly is needed to keep the company alive in the long-term.