Connected mobility is transforming customer experiences by using data to create more personalized, safer, and convenient driving experiences, writes GK Senthil, Chief Executive Officer, Toyota Connected India, & Soumya Shetty, Communication Specialist, Toyota Connected India.
Connected mobility in recent years has entered a new age. The innovations we’re seeing today are largely driven by the data that is locked in connected vehicles. However, when you take a closer look at this evolution, you’ll realize that embedded connectivity is still a relatively recent milestone in the transformative developments of the automotive industry. It was introduced to passenger vehicles no more than 20 years ago. Collecting vehicle data began with simple telemetry for tracking and offered perhaps limited insights into vehicle health. It’s only in recent years that OEMs have set up massive technology infrastructure to collect a wide variety of data points from vehicles. Even back in 2022, It was estimated connected vehicles generated more than 2 petabytes of data per month. Expansive data is no longer limited to just the vehicles, though; it’s extending to customers, capturing driver behaviours, and environmental conditions, among many other things. When applied judiciously, data monetization can boost service revenue by 10% or more—an amount that can translate to hundreds of millions in revenue for larger OEMs, according to McKinsey’s 2021 report. This data that is collected by cars today has the power to unlock immense value across the automotive industry value chain, especially to elevate customer experiences! The key is to do this in a manner that is cost-effective and, more importantly, honours customers’ privacy, upholding it with the highest data security standards.
Unlock value in steps
Each journey a car makes tells a story of driving patterns, vehicle performance, and in-car preferences. The true power of connected car data lies in how we can unearth valuable, actionable insights at multiple levels from the enormous data that is accumulated. Emergency assistance and tracking stolen vehicles have proved to be valuable features for customers for years. Imagine driving a car that can better anticipate our maintenance requirements, offer timely reminders, and provide vehicle health reports that enable you to take better care of your car, encouraging reduced insurance costs. Evolving further, what if your car can alert you to potential hazards through sensor-based safety features or guide you on the optimal route through the in-car infotainment features? Further downstream, vehicle data can help OEMs make better parts and accessories and empower dealers to serve customers better. Implemented effectively, customers can potentially gain a whole lot from partners’ ecosystems as well. A 2021 Accenture survey report suggests that nearly 80% of customers are fairly open to sharing car-related information such as maintenance, driving patterns, and ownership. By harnessing these diverse datasets, we can deliver personalized experiences that not only make the driving experience more satisfying but also advance safety, efficiency, and convenience.
Deliver what customers need before they even know they need it
The key to exceptional customer experiences lies in anticipating what customers need before they even realize they need it. This proactive approach is at the heart of our vision at TC India: to empower sustainable mobility and deliver elevated customer experiences. By constantly innovating and thinking creatively, his vision can be brought to life through a variety of technology solutions, and data plays a key role in manifesting these solutions. The Driver Score is one such example. It is a powerful feature that analyzes and scores driving behaviour using advanced data analytics. Tailored to navigate the ever-so-challenging Indian driving environments, landscapes, and terrains, A system can be designed to calculate a score for each trip based on pre-defined parameters and provide insightful and detailed feedback to drivers on driving patterns and behaviours. Data plays a critical role in the in-vehicle experience too. An exciting real-life example is a Virtual Assistant-powered Infotainment system. Fueled by vehicle-oriented design thinking, our user-friendly and interactive AI (Artificial Intelligence) based voice assistant solution helps drivers navigate to places, stream music from multiple platforms, and change vehicle settings—all without taking their eyes off the road. A complex integration of heterogeneous data sources like maps, user preferences, weather, etc. comes together to make this experience happen. Similar efforts with significant impact are also made by our teams on vehicle telemetry and health tracking, each of which delivers superior customer experiences. For us, data isn’t just a tool; it’s the driving force behind our commitment to redefining what’s possible on the road.
To help customers, look beyond customers!
This brings us to the larger picture. If the end goal is to truly revolutionize the customer experience, we need to expand our focus beyond just the person sitting in the driver’s seat—we need to embrace a more comprehensive approach so that every stakeholder in the ecosystem is empowered to drive a data-driven transformation. An example is the visualization of CAN data itself for quality assurance and R&D. With intuitively filtered views of vehicle data along with warnings and environmental conditions, we can fast-track accurate troubleshooting and diagnostics, performance optimization, and predictive analysis for proactive quality control
and improved vehicle systems. For manufacturing plants, we enable them to leverage data to automate their processes to drive operational excellence, enabling real-time adjustments that reduce waste, enhance quality, and accelerate production timelines. Our flagship product, Gatekeeper, uses Automated Number Plate Recognition at its core while smartly wielding surrounding automotive insights, helps dealerships enhance customer interactions, deliver personalized services that build loyalty, improve vehicle service efficiency, and reduce manual errors and delays, among many other process automation. By looking beyond the customer, we aren’t just enhancing the driving experience—we’re also creating a dynamic, interconnected ecosystem where every touchpoint, from the factory floor to the dealership, contributes to a seamless and superior customer journey.
Deliberate Pivotal Aspects
To build useful features out of massive amounts of data, it is important to have organizational constructs that foster innovation. Enabling access to sandboxed, sanitized, and anonymized datasets with proper access controls is paramount to experimenting and producing results. To carry the sweet results of the experiments further, building a suitable financial model is essential. Not all cool use cases can justify customers paying for them. Having said that, consider the breakeven horizon longer than a year, since these features usually require significant investments in data engineering and AI infrastructure upfront. Ensure non-tangible like brand value is considered in the outcome model to consider viability. Lastly, while on the quest to transform customer experiences around us, it is extremely critical to consider data privacy and security implications. Ensuring customer consent to data collection and disclosed usage of data is basic hygiene. Strong governance, data management and compliance based on local regulations are paramount. As of 2024, more than 60 countries are said to have implemented some form of data localization policies.
Embrace Emerging Trends
McKinsey’s 2020 consumer survey on autonomous driving, connectivity, electrification, and shared mobility (ACES) reports that 39% of consumers were interested in unlocking additional digital features after purchasing a vehicle—a figure that rises to 47% for customers of premium OEMs. As we stand on the brink of data-powered transformations, it’s exciting to see how Emerging technologies can be harnessed to create truly intelligent, customer centric vehicles and features. Software-defined vehicles are proving to be game-changers for the industry. It has such a compelling case for enabling car makers to introduce new features and functions in the car through over-the-air updates, potentially at lower costs compared to hardware modifications. In-vehicle payments, too, are going to be yet another trend that has the power to transform the way we use our cars. Imagine conveniently handling fuel purchases, tolls, and parking without ever leaving your vehicle. Beyond just making life easier, this innovation will help alleviate road congestion and promote more sustainable driving habits. EV usage and battery data analysis would lead to more exact range prediction, terrain- and weather-based routing guidance, and optimized battery management. By using the location data of vehicles and third-party services like fueling, battery charging, and car wash, we can create not just convenient mobility but also a smoother transition to sustainable transport like EVs. Another trend that will see a rise is crowdsourcing. It has an ingenious ability to enhance real-time data accuracy and service quality by using input from a network of connected vehicles, improving everything from traffic management to road condition updates. By continuously analyzing driver behaviour, driver monitoring systems will provide real-time feedback and adjustments, tailoring the driving experience to individual needs. Over the next decade, cars will inevitably become increasingly smarter. As we navigate the future of automotive innovation, data is the catalyst for elevating customer experiences. By harnessing the power of connected vehicles, we are unlocking opportunities for unprecedented levels of personalization, convenience, and safety.
Disclaimer: The views expressed by the authors are theirs own and do not necessarily reflect the views of FMM magazine.
GK Senthil
Chief Executive Officer
Toyota Connected India
Soumya Shetty
Communication Specialist
Toyota Connected India