Big Data in Automobile Industry is taking over the driving seat

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You know what? During a long drive, a thought provoked my mind about how easier our lives have been in recent years as we no longer need to be dependent on the roadside shopkeepers (specially PaanWalas) to pave our way through the destination we need to travel to. All the fear of been misguided by our destination has almost been eradicated.

Have you ever thought about it?

How did the manufacturers make it possible to have a GPS system in the car itself? What is the technology behind this innovation?

Is it Big Data?

And not to your surprise, Yes. Big Data is well and truly taking over the driving seat in the automotive industry.

Big Data and analytics have now laid its hands over the steering of the automotive industry and is in full control of it.

The concept of connected devices is not only limited to the wearables but has been in the corner for the automotive industry.

Apart from the IT industry, the automotive industry has been one of the most benefitted one from Big Data and analytics. It has transformed the way we move.

Let’s start our ride towards Big Data in Automobile Industry

Big Data in Automobile Industry

The automobile industry is one that faces fierce competition and to thrive in this competitive world innovations are a must.

Companies need to regularly upgrade themselves in order to have a competitive edge over others and Big Data provide them with this power to be a step ahead of others.

The other key factor that contributes to their success is the efficiency between the different departments of their organization.

Big Data Applications in Automobile Industry

These are the applications of Big Data in Automobile Industry-

  • Supply Chain Management
  • Connected Cars
  • Automobile Financing
  • Predictive Analysis

Let’s discuss the applications where Big Data is proving to be of utmost importance for the automotive industry in detail.

1. Supply Chain Management

Automobile companies deal with a massive number of components on a regular basis. The majority of their revenues are sanctioned to these departments. A powerful company is one that has the ability to manage its supply chain quite efficiently.

What automobile manufactures should do to have a stable supply chain management?

Here is the answer, Automobile manufacturers need to have a robust supply chain management system to obtain the overall efficiency of their organization.

Taking care of operations to deal with high market competition, innovative strategies to make manufacturing process optimized and building healthy communication among the departments are a few factors that determine the stability of any organization’s supply chain management system.

By employing Big Data and analytics into their supply chain, auto manufacturing companies now tend to compare the products they require to various other products that are available in the market based on different parameters such as costs, quality of the components and its reliability.

Thus they are now able to make a choice between the best components in the market and the ones that would increase the profitability of the organization.

2. Connected Cars

Big Data analytics has transformed our driving experiences. Apart from mobile phones, our cars are the second most technology embraced devices we use.

From the internet and WiFi to sensors and advanced processors, cars these days are fully loaded with technologies and this is just a step towards the era of smart vehicles.

Do you know? Big Data has a lot more to offer.

Users are now more connected on the go and can experience supportive/autonomous driving, fuel efficiency, safety alerts, notifications prior to its surroundings and the record of the vehicle’s health all in real-time.

A study estimated that in the next few years about 90% of the new cars will have connectivity setup. Big Data analytics is now an important part of the automobile industry as it is the backbone of all the technologies and is set to revolutionize your driving experience.

3. Automobile Financing

Auto-Finance companies gather massive amounts of customer data. This data can help them in understanding their customers better but this huge quantity hinders them from analyzing the data and take action on it. Auto-finance companies are analyzing this data to gain insights into the customer’s financial history and preferences.

Through these insights, companies are now able to provide more personalized financial schemes that would be ideal for a customer according to their requirements. This will generate more leads in business as they would now be able to offer differentiated services, keeping them away from the fraudulents and the defaulters.

Big Data analysis gives auto-financing companies an upper hand over the other competitive companies in the market.

4. Predictive Analysis

Now read about the last application of Big Data in Automobile industry – Predictive analysis

A loyal customer is retained only when the companies are a step ahead of their customers. To be able to predict problems that a customer might face soon is one of the most amazing use cases of Big Data in the automobile industry.

A company’s endeavors to drive innovations and to gain a competitive edge over others increases the probability of releasing flawed products in the market to a great extent. But predictive analysis can help the automotive industry to take suitable timely actions and ensure better health of the vehicle.

With the use of the application of Big Data in the Automobile Industry, Companies can even provide preventive measures to the forthcoming problems of their customers. This enhances customer satisfaction experience and costs control measures.

Companies can predict the defects that might occur in their product within a month of the purchase of all the defects that can take place during the course of the warranty period. This would allow them to have a check on the arts that are most likely to get damaged and can be vital in enhancing the overall efficiency of the organization.

Big Data Case Studies in Automobile Industry

These are the two case studies of Big Data in the Automobile industry-

  • Big Data Case Study Of Maruti Suzuki
  • Big Data Case Study Of General Motors

Now read them in detail

1. Maruti Suzuki

Maruti Suzuki, ranked number one on J.D. Power’s customer satisfaction list for the past 14 years, is the epitome of how a company should treat its customers.

And imagine the reason for it being the undisputed king in that list is Big Data and analytics. Yes, you read that right. Their “Market to One” approach has been the main reason behind their customer retention policy.

Market to One approach is all about providing a personalized experience to each of its customers and this approach has paid off for them as Maruti Suzuki saw an overall growth of three percent in the first seven months after adopting this approach.

The backbone of this approach has been SAS, a software suite for advanced data analytics, which enhanced them to create a 360 degrees view of more than 10 million of their customers.

2. General Motors

General Motors, the largest American automobile manufacturing company has been the pioneer of Big Data and analytics in the automotive industry. Cars with sensors and processors are commonplace these days.

General Motors has sensors and telematics within the car as its center of interest as it saves them a lot of revenue as well as makes their cars more secure and reliable.

For them, telematics is like a goldmine as it provides them massive savings of up to $800 per car. What made this possible? Of course, Big Data and analytics. The concept of connected cars is made possible only because of Big Data and it is saving a hell lot of dollars for General Motors.


With the rapid increase in advancements from the technological world, who would’ve thought that it can change the way we drive our vehicles.

We probably never imagined that our cars might be connected to the internet someday and this is what the power of technology is. All the amazing services like the GPS navigation system, enhanced security functions, customized insurance, traffic management and, best of all, autonomous driving.

Big Data has been into the roots of all these advancements since the amount of data collected for all these developments increases massively. Big Data has finally reignited the automobile industry.

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