Chinese brands are outpacing Western automakers on updates. Legacy manufacturers are struggling to keep up, says report. Despite this, Chinese marques are struggling to monetize software. In an era where cars are less mechanical than they are tech showpieces on wheels, your car is becoming more akin to your phone in terms of how its lifecycle is updated. Modern vehicles are packed with screens and features, all governed by software, software that can be updated, refined, and patched with relative ease. According to one report, there’s a company that understands that better than any others. That company is none other than BYD, the Chinese New Energy Vehicle specialist that continues to make headlines, both good and bad. In this instance, the firm is employing over-the-air (OTA) software updates to increase vehicle performance and the life cycle of its models. See Also: China Does What Many Drivers Wish Someone Would Do About Car Screens In mid-February, BYD released the fourth OTA update to its Han L sedan, a flagship vehicle of the Dynasty family, which was first unveiled in April 2025. The upgrade will introduce an enhanced driver assistance system, which is end-to-end AI-driven to improve its perception and decision-making in complex driving scenarios. The new features will take about two hours to install, and owners will be in a position to utilize the new features without going to an automobile dealership. Chinese Lead In OTA Updates Chinese manufacturers, such as BYD, seem to be leading in the OTA update sphere. While the concept may have been pioneered by brands such as Tesla, the evidence would suggest that Western manufacturers are lagging. In the past, vehicles would receive only minor changes, often via facelifts and perhaps even several years after being introduced. OTA technology has broken this pattern and enabled the cycle of continuous improvements to keep vehicles updated throughout their lifetime in a similar manner as smartphones. BYD leads this change with its active strategy of updates. In 2025, Nikkei Asia reports that the company released about 200 software updates on its Ocean and Dynasty brands. Other brands like Aito, a creation of Huawei Technologies and Seres Group, and startups like Leapmotor have become more prolific when it comes to OTA updates. Tesla, by comparison, only had 16 OTA updates last year. Toyota and VW didn’t fair any better, with eight and five respectively. Nissan, with its new N7 electric car, however, managed to push out its first update just two months after its launch, unlocking new applications and longer voice recognition capabilities. “OTA updates must be developed even before product launch as part of the car’s lifecycle, in order to keep up,” said Isao Sekiguchi, managing director of Dongfeng Nissan. There is a catch. The N7 is not a clean-sheet Nissan effort, but a joint project with Dongfeng Motor Corporation, built on the Chinese partner’s eπ 007 platform. Less Opportunities To Monetize Updates BYD’s rapid rate may be explained by the vertical integration development model, i.e. in-house design of semiconductors, operating systems, and hardware, designed by BYD. Such control allows the company to update it at a very high speed and efficiently without modifying the user experience. However, OTA updates have an economic cost. It’s not just the cost incurred in developing and rolling out each update. While the extension of technological relevance of a vehicle may enhance the resale values and decrease the occurrence of complete model redesigns, OTA technology is difficult to commercialize. In China, updates are generally free of charge, which rules out the opportunity to add to a company’s bottom line. Instead, Tesla-like subscription-based solutions are being considered by the industry. XPeng is mulling over more advanced levels of autonomous driving, particularly Level 4 technology, which could be marketed as an extra service. This would mirror the strategy Tesla already used with its Full Self-Driving subscription in North America.