A car used to be judged by its engine, gearbox and how well it handled. Today, a lot of what makes a car good is happening behind the scenes, through electronics.
According to Pavan Puri, Founder and MD of Greencore, electronic components now make up more than a third of a vehicle’s total value. In premium cars and EVs, that share can be even higher.
And there are some simple reasons why.
Cars Are Doing a Lot More
Think about what a new car can do today. It can warn you about a car in your blind spot, keep you in your lane, brake if it spots an obstacle and even adjust its speed on a highway.
All of this depends on electronics.
Some of the biggest additions to modern cars include:
- Cameras that keep an eye on the road
- Sensors that detect nearby vehicles and obstacles
- Screens and connected features inside the cabin
- Systems that control the battery and motor in an EV
- Features that can be improved through software updates
A decade ago, many of these features were either unavailable or limited to expensive cars. They are now finding their way into much more affordable vehicles.
EVs Push Electronics Even Further
Electric cars have made this shift even more obvious.
An EV needs electronics to manage its battery, control the motor and make sure the car uses its energy efficiently. There is less of the traditional mechanical hardware found in an internal-combustion car, but far more technology working in the background.
That makes electronics a much bigger part of the car’s overall value.
Your Car Can Keep Getting Better
The other big change is software.
Some modern cars can receive updates remotely, allowing manufacturers to improve features without requiring a visit to the workshop. That means the car you buy today doesn’t necessarily have to remain the same throughout its life.
What It Means for the Industry
This change is also forcing component makers to evolve. Companies that traditionally built mechanical parts are increasingly moving into electronics and software, while cybersecurity is becoming more important as cars become more connected.
The engine and gearbox aren’t going away anytime soon.
But increasingly, what makes a modern car special is not just what moves it. It’s everything that helps it think, react and connect.
