Stellantis sees new ways to generate profits from vehicle software

DETROIT -- Stellantis looks to generate more revenue through vehicle software in the years ahead, but consumers do not have to worry about the automaker charging for basic amenities such as heated seats.

Any premium services coming from Stellantis will provide additional value, said Mamatha Chamarthi, Stellantis' chief business growth officer for software experience.

The company expects to capture $21.6 billion in annual revenue from vehicle software by 2030, and is thinking of innovative ways to make this happen. Chamarthi believes offering features on demand could open doors to more revenue. Stellantis has said in the past that it's expecting to have 34 million monetizable connected cars globally by 2030.

In the future, Stellantis may use software to unlock horsepower, Chamarthi said. Imagine someone bringing their Dodge Challenger to the track for a day of rubber-burning fun, but they want to take its performance to the next level.

That is a moment where Stellantis can tap into the customer's needs, she said.

"I can, through software, update the horsepower," Chamarthi said Wednesday during a technology panel discussion that examined the future of connected cars. "It's not street-legal to drive at a higher horsepower, but when I am on the track, it's OK for me to drive with a higher horsepower, so that is a feature on demand.

"So a feature on demand, knowing the context of the customer," she said. "And I am presenting that opportunity to the customer at that right business moment."

Chamarthi was joined on the panel by Jim Heaton, chief architect for the automotive sector at Deloitte; Subhash Sakorikar, director of strategy, growth and transformation at Tata Consultancy Services; and Achyut Jajoo, senior vice president and general manager of Salesforce. It was moderated by Rajani Sinha, Salesforce's senior director, industry solutions and strategy, automotive.

Chamarthi said timing will be critical in getting consumers to purchase extra features. Relying on a dealership salesperson to run down a list of available vehicle upgrades during the buying process could lead to people forgetting what was offered when they leave the store, she said. To avoid that, a vehicle prompt to buy a feature based on the situation of the driver could prove useful.

"You present it at the right business moment and say, 'Here is what you can do with this car,'" Chamarthi said.

Stellantis wants to use software to create experiences around its brands. Chamarthi envisions a "track as a service" offering for its performance models, for instance, or even "trail as a service" for off-roaders.

Software-enable vehicles are "going to be a fully functional business unit," Chamarthi said. "That means we are going to make money with a software-defined vehicle, and that our profit margin that we would make, because it's software-based, would be equal to that of a tech industry — so more than 40 percent margin."