There was a time when seatbelts in cars were optional. Airbags, too, were once considered a luxury, reserved for high-end models. Now, we wouldn’t think of driving without them.
Safety, once a premium feature, evolved into a necessity — an industry standard that automakers could no longer charge extra for. The same shift may be under way for self-driving technology, and one company is forcing the industry’s hand. BYD, the world’s largest electric vehicle maker, is making advanced driver assistance systems a standard feature across most of its line-up — at no additional cost.
For years, carmakers have looked to driver assistance software as the key to offsetting declining hardware margins. This held promise as a cash cow, much like tech companies monetise cloud services, a high-margin add-on that would generate billions in new revenue. Tesla, for example, charges $8,000 for its driver assistance software in the US as of April. Mercedes-Benz and GM are among many carmakers banking on monetising assisted driving technology.