Who owns the data your connected car collects?

At 8:17 each morning, a connected car leaves an apartment complex in Mumbai to travel to its owner's office. This vehicle records its route, travel time, and parking location. Most evenings, the car returns to the same routine. However, there are occasional deviations. On Tuesdays, the car stops at a particular neighborhood before heading home.

On Saturday mornings, it makes a short trip to a gym. Once every few weeks, the car even spends an evening at a hospital. Collectively, the car builds a comprehensive picture of its owner's life and the vehicle itself by gathering data such as location, speed, braking, acceleration, vehicle health, charging or fuel patterns, and even interactions inside the cabin.

For Ram Prasad, who operates a 10-truck transport fleet outside Pune, the presence of data is simple. His trucks provide information about their location, driving patterns, and performance. Prasad utilizes this data to optimize routes, monitor driving habits, and anticipate maintenance needs. However, his approach differs from that of automakers, who are exploring how to monetize this data.

Connected car data can provide valuable insights for various stakeholders. Insurers, financiers, used-car platforms, charging companies, and technology firms are all potential users of this information. As connected cars become more prevalent, the automotive industry faces a new challenge: how to effectively manage and monetize this data.

Automakers are already developing services around connected cars. Hyundai's Bluelink app offers vehicle diagnostics and other connected features, while Kia's platform includes remote diagnostics. Maruti Suzuki has expanded its telematics system, Maruti Connect, into some mass-market vehicles. Tata Motors' iRA platform provides vehicle location, trip information, vehicle status, driving scores, and vehicle-health information.

The scale of connected car adoption is rapidly increasing. By 2030, around 85% of new passenger vehicles sold in India are expected to have embedded cellular connectivity, according to Counterpoint Research. The value of vehicle data extends beyond the initial sale of the car, with potential revenue opportunities for automakers through subscription services, improved diagnostics, and aftersales offerings.

However, the key challenge lies in convincing customers to pay for these services and finding ways to integrate data from different manufacturers seamlessly.