How software is driving the future of the aftermarket

The modern vehicle is no longer just a finely tuned machine of gears, pistons and panels — it is now a highly intelligent platform powered by lines of code, real-time data, and over-the-air updates. Welcome to the era of the Software-Defined Vehicle (SDV).
If that term sounds like Silicon Valley jargon, think again. SDVs are already on Australian roads, quietly reshaping the way vehicles are built, repaired, and experienced.
For the aftermarket, this isn’t tomorrow’s challenge. It is today’s business reality.

What is a Software-Defined Vehicle?
A software-defined vehicle is one in which key functions — from safety systems and powertrain performance to infotainment and even climate control — are governed by software rather than traditional hardware.
In an SDV:
• Features can be activated or deactivated through software updates.
• Diagnostics and performance data can be transmitted remotely.
• Repairs and upgrades can be delivered digitally, sometimes without a single spanner being turned.
This is possible because computing power is being centralised.
Where vehicles once carried more than 100 electronic control units (ECUs), many new designs consolidate those functions into just a handful of high-performance processors.
That allows manufacturers to roll out new features and updates long after the vehicle has left the showroom.

A real-world example
Take Autonomous Emergency Braking (AEB): in a conventional vehicle, AEB behaviour is “locked in” at the factory.
In an SDV, manufacturers can recalibrate braking algorithms remotely — in response to road data, customer feedback, or even regulatory changes.
Or consider consumer features: heated seats, adaptive lighting, or performance boosts can be unlocked with a click. Sometimes those upgrades are free; often they are tied to a subscription model.

Why it matters for the aftermarket

1. Servicing and repairs are becoming software jobs
   Mechanical know-how will always matter, but the new frontier is digital.
   Faults may be caused by firmware conflicts, corrupted updates, or lapsed licences rather than worn parts. Calibration and coding are now a core part of the repair task.
2. Access to data is make or break
   If independent workshops can’t access the secure gateways, data channels, or software platforms inside these vehicles, repairs grind to a halt.
   This is why Right to Repair laws and the Motor Vehicle Information Sharing (MVIS) Scheme are critical. Without genuine access, the aftermarket is effectively locked out.
3. Training and equipment need to evolve
   Technicians will increasingly need IT literacy alongside mechanical skills: understanding CAN networks, cybersecurity protocols, and pass-through programming.
   Workshops will need to budget for updated tools, reliable internet connectivity, and ongoing training.
4. Customer expectations are changing
   Drivers are already used to app-based experiences in their cars.
   They will expect their local workshop to understand subscription services, connectivity issues, and software faults as confidently as they handle brakes and tyres.

The risk of standing still
History is a guide here. Businesses that failed to adapt to fuel injection, ABS, or hybrid systems were quickly overtaken.
SDVs represent the next leap — and the pace is accelerating.
Car companies are designing future fleets around software ecosystems rather than mechanical upgrades.
That means more digital locks, more remote diagnostics, and a greater need for industry advocacy on data transparency.

What can the aftermarket do now?
• Stay informed: tap into industry briefings, technical training, and trusted resources on SDV architecture.
• Invest strategically: budget for pass-through tools (J2534 or equivalent), updated diagnostic software, and secure gateways.
• Support advocacy: engage with Right to Repair and MVIS — these frameworks will determine whether independents can compete fairly.
• Adapt the business model: think beyond the workshop floor. Remote diagnostics, subscription add-ons, and partnerships with software specialists could become core revenue streams.

Final word
Software-defined vehicles present undeniable challenges, but also remarkable opportunities.
They can unlock new service revenues, enable remote diagnostics, and transform how we engage with customers.
What matters is readiness. In this new landscape, the most valuable tools won’t just be on the tool wall. They’ll be in the scan tool, the software licence, and above all, in access to the vehicle’s data.
The future of our industry is arriving on four wheels — and billions of lines of code.
The question is not whether SDVs are coming – it is how ready we are to meet them.

If you would like to offer your thoughts on this subject, please email advocacy@aaaa.com.au