The SDV concept represents a fundamental reimagining of vehicle architecture, centering on software as the primary driver of functionality, rather than traditional hardware components. This shift has presented significant challenges for legacy Western automakers, many of whom remain constrained by entrenched platforms, longstanding supply chain relationships, and rigid corporate structures. Meanwhile, Chinese firms—often unburdened by these legacy constraints—have rapidly advanced, leveraging agile development processes and deep integration with the country’s broader tech ecosystem.
“NIO and Xiaomi’s rise in the SDV rankings reflects their aggressive push into software-first vehicle development and the scalability of their architectures,” said Maite Bezerra, Principal Analyst at Wards Intelligence. “Overall, this category includes automakers that are not only pioneering SDV innovation but also refining and scaling zonal architectures and other foundational SDV technologies.”
Beyond the leaders, the rankings also highlight a broader landscape of disruptors and challengers. Xpeng and Rivian round out the Leaders category, ranking fourth and fifth, respectively. Both companies, like their peers at the top, have embraced a software-driven ethos from inception, positioning them at the vanguard of next-generation vehicle technology. These automakers, unencumbered by legacy manufacturing models, have been able to integrate software-defined systems more seamlessly into their vehicle architectures, allowing for rapid over-the-air updates, advanced autonomous capabilities, and highly adaptable user experiences.
A step below the Leaders, the Strong Contenders category includes Zeekr, Lucid, Leapmotor, and BMW, among others. In a striking shift from the previous year, 67% of the automakers in this tier have now moved beyond semi-SDV models to fully commercialized SDVs. This evolution highlights the accelerating pace of software integration across the industry and the growing pressure on traditional automakers to keep up. “Automakers in this category, such as BYD, are particularly well-positioned to challenge current market leaders,” Bezerra noted.
Further down the rankings, the Contenders category—home to major industry players such as Hyundai, the Volkswagen Group, and General Motors—has shown signs of progress, with more companies deploying semi-SDVs and outlining clearer SDV strategies. However, despite these advancements, significant hurdles remain in bringing fully realized SDVs to market at scale. Meanwhile, in the Followers category—previously populated by automakers without a defined SDV strategy—companies are now beginning to establish clear roadmaps in response to the industry’s rapid evolution.
Assessing progress in SDV development remains a complex endeavor due to the lack of standardized definitions and benchmarks. To address this challenge, Wards Intelligence employs a rigorous research methodology, combining primary and secondary data sources with advanced statistical tools to evaluate automakers against five core metrics: financial strength, portfolio complexity, vehicle platform readiness, organizational readiness, and SDV performance. These criteria provide a comprehensive snapshot of each automaker’s standing in the rapidly shifting SDV landscape.
One of the most striking takeaways from the latest rankings is China’s growing dominance in the sector. “Notably, 62% of the automakers in the Leaders and Strong Contenders categories are either Chinese or Chinese-owned, highlighting China’s increasing influence in the SDV space,” Bezerra observed. Even more telling, of the 14 automakers included in these top tiers, only three are Western incumbents. This shift underscores the mounting challenges facing legacy automakers in Europe and North America as they seek to compete with the agility and technological prowess of their Chinese counterparts.
As the industry moves into 2025, the competitive landscape of SDVs is set to become even more dynamic. The ability of legacy automakers to adapt will likely determine whether they can maintain relevance in an increasingly software-driven world—or risk ceding further ground to the disruptors redefining the future of mobility.