In an age when cars are more technological exhibits on wheels than mechanical masterpieces, the life cycle of your vehicle is becoming more and more like that of your phone. Modern vehicles are full of screens and functions controlled by software – software that can be updated, improved and repaired with relative ease. And apparently, one company understands this better than anyone else.
That company is BYD, the Chinese electric vehicle specialist that continues to stand out. In this case, BYD uses over-the-air (OTA) software updates to improve performance and extend the life cycle of its models, leaving the traditional giants far behind.
Chinese manufacturers are leading the update race
Chinese manufacturers, led by BYD, seem to have taken the lead in the OTA update realm. Although the concept has been popularized by brands such as Tesla, evidence suggests that Western manufacturers are now lagging behind. In the past, vehicles received only minor changes, usually through a model redesign several years after their introduction. OTA technology broke that pattern and enabled a cycle of constant improvements, just like smartphones.
BYD is leading this change with its active strategy. According to Carscoops, the company has released about 200 software updates for its Ocean and Dynasty vehicle series over the course of 2025. In comparison, Tesla only had 16 OTA updates in the same year. Toyota and Volkswagen fared even more modestly, with eight and five updates, respectively.
In mid-February 2026, BYD released the fourth OTA update for its Han L sedan, the flagship of the Dynasty family that was first introduced in April 2025. The upgrade introduced an improved driver assistance system, based on artificial intelligence to improve perception and decision-making in complex driving scenarios. It takes about two hours to install, and owners can use the new features without going to a service center.
The problem of monetization
BYD’s incredible speed of software upgrades can be explained by the vertical integration model. The company itself designs key components such as semiconductors, operating systems and hardware. Such control allows them to update extremely quickly and efficiently without disrupting the user experience.
However, OTA updates come at a price, and not just in development and distribution costs. Although extending the technological relevance of a vehicle can improve its resale value and reduce the need for frequent redesign, OTA technology is difficult to commercialize.
In China, updates are mostly free, which excludes the possibility of direct profit. Instead, the industry is considering subscription-based solutions similar to those offered by Tesla. For example, XPeng is considering selling more advanced levels of autonomous driving, specifically Level 4 technology, as an add-on service. That would mirror the strategy Tesla already uses with its “Full Self-Driving” subscription in North America.
While BYD is leading the way in the number of updates, the entire industry is still struggling to find a viable business model for this new reality. One thing is certain: the race is no longer just on the track, but also in the cloud.