GM, Magna and Wipro collaborate to establish automotive software marketplace

In a strategic alliance aimed at enhancing the automotive software ecosystem, General Motors, Magna, and Wipro announced on Tuesday their joint venture to develop a dedicated platform for buying and selling automotive software.

The newly formed venture, SDVerse, will serve as a digital marketplace connecting buyers and sellers within the automotive software domain. Through this platform, software features and attributes will be listed, facilitating transactions and collaborations in the automotive software space.

Wipro, in a regulatory disclosure, revealed an investment of $5.85 million, granting them a significant 27 per cent stake in SDVerse. General Motors and Magna will hold stakes of 46 per cent and 27 per cent, respectively. The transaction is slated for completion before the end of March.

While still in its developmental phase, the platform aims to host an extensive array of automotive software products and engage participants from across the industry.

The initiative arrives amid an era where automakers are intensifying their investments in technology to foster the development of connected vehicles equipped with advanced driver aids.

Harmeet Chauhan, global head of Wipro Engineering Edge, highlighted the exponential growth projected for the automotive software market throughout the decade, potentially surpassing the expansion of software development talent pools.

Although specific revenue targets were not disclosed, SDVerse intends to adopt an annual subscription fee model, with no charges levied for buying or selling products through the platform.

While General Motors, Magna, and Wipro will each have representation on the board of SDVerse, the platform itself will operate independently, fostering a neutral environment for all stakeholders involved.

(With Reuters inputs)