GM, Magna and Wipro forms automotive software buy/sell platform

General Motors (GM) has partnered with Magna auto parts supplier and Wipro to create a joint venture “SDVerse” to buy and sell car software in the automotive industry.

This JV will connect buyers and sellers through like an online e-commerce website with software features and other information listings like a product.

Wipro could invest $5.85 million for about 27% ownership of SDVerse. While GM and Magna own 46% and 27% ownership shares respectively. The JV transaction will wrap up by March this year.

Companies involved in this JV are working on the development phase and the platform could house more than a hundred automotive software products and services in different categories.

Market research from McKinsey & Company predicts that the global automotive software and electronics market is expected to reach $462 billion, which reflects a 5.5% CAGR from 2019 to 2030. This growth could be driven by passenger cars and light commercial vehicles (LCVs).

There are no further details revealed about SDVerse’s revenue target but it could start with an annual subscription fee with no additional charges on buying and selling automotive software stuff.

GM, Magna, and Wipro will have representatives in this new automotive software platform joint venture but SDVersion is designed to operate on its own.

(source – Yahoo)