How Digital Transformation Drives Automotive Industry Forward in 2021

By admin_user In Digital Transformation On June 11, 2021

digital transformation in automotive

Advancing technology brings disruptive changes across various industry sectors, and the automotive industry is one of the biggest beneficiaries of it. Thanks to digital innovation, the sector can embrace the trends like IoT, wireless solutions, increased connectivity, and environmental regulations.

These days, digital transformation in the automotive industry becomes prevalent by covering various aspects of the value chain ranging from design to manufacturing and distribution to functionality. Experts are of the opinion that connectivity, AI, and data analytics will attract more investment in the automotive iot solutions in the future. When it comes to digital transformation strategy, here are some of the aspects we need to consider. 

What should be included in digital transformation strategy in the automotive sector?

E-commerce has a deep route in the automotive sector, and it acts as a bridge between dealers and customers. However, still customers prefer the traditional buying experience when it comes to purchasing automobiles. It is fair to mention that the inclusion of iPads in showrooms could not augment the customer experience significantly. 

In this pandemic age, the automotive sector also witnesses a brunt of stringent norms like social distancing. Customers can willing to use online means to meet their needs. In the coming years, this trend will gain ground. Therefore, the automotive industry has to make a digital transformation strategy for improving the online customer experience and establishing real-time connectivity. Be it a website, social media, or mobile app, digital transformation strategy needs to include all online ways. 

Digital transformation in the automotive industry covers various aspects including autonomous vehicles, manufacturing, marketing, sales, and maintenance of automobiles. However, digital innovation brings challenges as well. Some of the major challenges are investment and resistance to change. Let’s discuss these challenges in detail. 

Main Challenges of Digital Transformation in Automotive Industry

1. Heavy Investment

In this troubled time, the economy is sinking and companies need to focus on cash conversation. Talking about the automotive sector, it requires more efficiency, and therefore, companies tend to invest in supply chain visibility, customer experience, and sales efficiency.

Talking about digital innovation, automotive company owners should look at the most valuable use cases that can give them a high ROI. Here the big challenge remains in predicting the ROI of emerging technologies and identifying optimal use cases in the highly competitive automotive sector. Alternative fuel engines and autonomous vehicle technology are in vogue, but consumers are still reluctant to pay a hefty price for these features across the world. 

Also Read- 5 Ways Augmented Reality is Changing the Automobile Industry

2. Stiff Resistance

Digital transformation is a process that demands cultural and infrastructure-related changes in the workplace. For the automotive industry, the fragmented nature makes it easy to embrace the transformation with a little requirement for infrastructure-related changes. As per the survey, automotive manufacturers expect a 24% growth in investment for digital transformation over the coming years. However, challenges related to low levels of digital maturity & resistance to digital innovation at the employee level remain for the sector. 

Let’s go through the top digital transformation trends in the automotive industry. 

Top Digital Transformation Trends in Automotive Sector to Watch 

The thriving automotive sector is highly dynamic and offers many opportunities for digital transformation. Here are the key digital transformation trends for the industry. 


Cars with all major communication tools for real-time and seamless connectivity will remain highly popular among people across the world. As cars can understand voice commands more effectively and get adjusted as per the driver’s persona easily, we will see more in-vehicle systems with technological advancements. 


The automotive industry is already leveraging the benefits of AI (Artificial Intelligence) technology through ML and the predictive driving concept. With unique manufacturer-developed technologies will advance and autopilot functionality will develop, the idea of the automated car will gain popularity swiftly. 

Augmented Reality

Many applications based on augmented reality and virtual reality are prevalent in the automotive sector. AR-based remote assistance solutions and other robust solutions for virtual showrooming, prototyping, & configuration will be mainstreamed soon. Service departments can use manufacturer-supplied augmented reality software to help automotive technicians save their time. We will see more AR and VR-based automotive solutions in the future. 


This pandemic age has made every industry consider its strategy in favor of more sustainable or environment-friendly technology. Electric cars will be mainstreamed by 2025, and as per the prediction, they will replace gasoline-powered cars by 2040. Also, many automotive companies tend to make the online experience more convenient & comfortable using digital transformation technologies to save paper and other resources.

Concluding Lines

The automotive industry is going through some exciting yet challenging times. Digital transformation solutions can give automotive companies an edge over their competitors. Entrepreneurs in the automotive sector can streamline supply management, expand their business into new markets, and offer omnichannel experiences to customers. All they need to find a reputed and reliable digital transformation solutions provider for the automotive sector. 

 At Rejig Digital, we dedicatedly work to bring digital innovation to the automotive sector by integrating the advancements of emerging technologies like AI, IoT, ML, and data analytics. We assist the automotive company to make and implement a digital transformation strategy effectively. Do you want to explore our solutions? Simply send us an email at and we will gladly assist you. 

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