Virtual reality is about to launch in series production cars this summer, starting with Audi sedans and SUVs.

Holoride announced Saturday at the SXSW tech, music and film conference in Austin that its headset-based virtual-reality entertainment system will debut in June in certain Audi models with the latest MIB 3 software. The announcement is a milestone for the startup that spun out of Audi several years ago; it also signals an increasing interest among automakers to find new ways to capture the attention of consumers.

The Holoride system intertwines backseat passengers' physical world with augmented reality for a motion-synchronized journey as the car moves along. The system is brand agnostic, which means other automakers can support it, too.

Holoride's partnership with Terranet, a Swedish ADAS software development company, allows for the VR system's sensors and software stack to capture and interpret the environment quickly and accurately. Terranet's VoxelFlow system calculates VR movement based on data points received from the car.

The software to build virtual-reality content for cars is also open source, allowing developers to create content and eventually cash in.

For now, the only additional cost to use the VR system is a headset, but there is limitless potential for carmakers and developers to generate revenue from car owners by selling subscription services or charging for certain features. The global automotive AR and VR market is projected to reach $674 million by 2025, according to an Allied Market Research report.

Bringing VR entertainment into series production cars is also an initial step toward developing the type of content passengers may consume once driverless cars arrive. Holoride and Audi, which owns part of the Munich-based VR company, hope to stake an early claim in the tech stack of autonomous cars -- and the nearer term prospect of capturing more revenue from its human-driven vehicles.