It depends on the company. VW has a serious problem because they are selling a mass market product where they need to compete with the Chinese products. And while they make fine cars their infotainment system that now controls everything is still terrible (laggy touchscreens, complicated UI and so on) and the cars are expensive and their EVs are slow. Unlike many here I think touchscreens in a car are fine if done well (like Tesla), but getting it right is extremely important.
On the other hand, BMW/Mercedes for example sell much based on brand recognition and to a market segment willing to pay a lot. This is unlikely to change soon, so their strategy is reasonable.