Wards Intelligence’s Software-Defined Vehicle (SDV) ranking, now part of Omdia, reveals that while Tesla still holds the overall lead, it has been surpassed in technological innovation by NIO and Xiaomi, which now occupy second and third place, respectively. The SDV concept represents a paradigm shift that has proven more complex than initially anticipated—particularly for established Western OEMs— but is advancing rapidly in China.

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SDV Quadrants Organizational Readiness vs Vehicle Platform Readiness (Graphic: Business Wire)

Xpeng and Rivian rank third and fourth, respectively, completing the Leaders category. This category mainly consists of battery-electric-vehicle disruptors that are digitally native, prioritize a software-first approach, and are not constrained by legacy platforms, systems, or organizational culture. “Overall, this category includes automakers pushing the boundaries of SDV innovation, as well as those refining and scaling zonal architectures and other SDV-related technologies and practices,” said Maite Bezerra, Principal Analyst at Wards Intelligence, now part of Omdia.

In the Strong Contenders category—featuring Zeekr, Lucid, Leapmotor, and BMW, among others—67% of automakers are now actively commercializing SDVs, a notable shift from 2023 when most were limited to semi-SDVs. This underscores both the rapid growth of the SDV market and the intensifying competition within it. “Automakers in this category, such as BYD, are particularly well-positioned to challenge the current market leaders,” said Bezerra.

The Contenders category, including Hyundai, the Volkswagen Group, and General Motors, among others, saw an uptick in automakers deploying semi-SDVs and outlining more detailed SDV strategies. However, they still need to make substantial progress in bringing SDVs to production. Meanwhile, automakers in the Followers category—which previously included OEMs without a public SDV roadmap or specific timelines—have started setting clear SDV goals in response to the market’s swift evolution.

Measuring SDV progress remains challenging due to inconsistent definitions and lack of clear benchmarks. To address this, Wards Intelligence conducts annual primary and secondary research, utilizing advanced statistical tools to identify the most accurate indicators of SDV advancement. In this edition, 27 automakers were evaluated across five metrics: financial strength, portfolio complexity, vehicle platform readiness, organizational readiness, and SDV performance.

“Notably, 62% of the automakers in the Leaders and Strong Contenders categories are either Chinese or Chinese-owned, highlighting China’s increasing dominance in the SDV segment,” said Bezerra. “Furthermore, only three of the 14 automakers in these categories are Western incumbents. Both trends point to a continued shift toward Chinese leadership and ongoing challenges for Western automakers in 2025.”

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