Big Data in Automobile Industry

Big Data – Driving Automobile Industry Mad

Do you know this? During a long drive, a thought triggered my mind about how simple our lives have been in recent days as we no longer need to be reliant on the roadside shopkeepers to cover our way through the destination we need to travel to. All the concern of been mistaken by our destination has almost been eliminated.

Have you ever considered it?

How did the companies make it possible to have a GPS in the car itself? What is the technology behind this revolution?

Is it Big Data?

Big Data and analytics have now placed its hands over the steering of the automotive industry and is in full control of it. The impression of connected devices is not only limited to the smart 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 profited one from Big Data and analytics. It has changed the way we move.

Let’s start our travel towards Big Data in the Automobile Industry.

Big Data in the Automobile Industry

The automobile industry is the one that meets fierce competition and to succeed in this competitive world transformations are a must. Companies need to regularly update themselves to have a competitive edge over others and Big Data provide them with this capability to be a step forward of others. The other vital factor that influences their success is the effectiveness of the different departments of their organization.

Big Data Applications in Automobile Industry

Below are the applications of Big Data in the Automobile Industry-

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

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

1. Supply Chain Management

Automobile manufacturers deal with a vast number of components daily. The majority of their revenues are approved by these departments. An influential company is one that can manage its supply chain quite effectively.

What automobile companies should do to have a steady supply chain management?

Here is the solution, Automobile companies need to have a vigorous supply chain management system to attain the overall effectiveness of their organization. Taking care of processes to deal with high market competition, advanced strategies to make manufacturing process enhanced, and building healthy interaction among the departments are a few factors that establish the stability of any organization’s supply chain management system.

By utilizing Big Data and analytics into their supply chain, auto manufacturing companies now supervise to compare the products they require to several other products that are available in the market based on different parameters such as costs, quality of the parts, and its consistency. Thus they are now competent to choose between the best parts in the market and the ones that would increase the productivity of the organization.

2. Connected Cars

Big Data analytics has renovated our driving experiences. Apart from mobile phones, our cars are the second most technology incorporated devices we use. From the internet and Wi-Fi to sensors and advanced processors, cars these days are abundantly loaded with technologies and this is just a step towards the time of smart vehicles.

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

Users are now further connected on the go and can experience assistive/autonomous driving, fuel efficiency, safety alerts, notifications before its environments, and the record of the vehicle’s health all in real-time.

A report projected that in the next few years nearly 90% of the new cars will have connectivity setup. Big Data analytics is now a crucial part of the automobile industry as it is the mainstay of all the technologies and is set to transform your driving experience.

3. Automobile Financing

Automobile Finance firms collect huge amounts of customer data. This data can help them in identifying their customers better but this huge amount hampers them from evaluating the data and take actions on it. Auto-finance firms are evaluating this data to acquire insights about the customer’s financial history and fondness.

Big Data In Automobile Financing

Through these visions, companies are now able to provide more customized financial schemes that would be model for a customer according to their necessities. This will create more leads in business as they would now be capable to offer distinguished services, keeping them away from the counterfeit and the defaulters. Big Data analysis gives auto-fin companies an upper hand over the other competitive companies in the market.

4. Predictive Analysis

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

A reliable customer is held only when the companies are a step forward of their customers. To be able to forecast problems that a customer might face soon is one of the most wonderful use cases of Big Data in the automobile industry.

A company’s attempts to drive transformations and to attain a competitive edge over others improves the probability of releasing defective products in the market to a great scope. But predictive analysis can help the automotive industry to take appropriate timely actions and confirm better health of the vehicle.

With the use of the application of Big Data in the Automobile Industry, Companies can even offer precautionary measures to the upcoming problems of their customers. This improves customer satisfaction experience and costs control measures.

Companies can forecast the flaws that might occur in their product within a month of the purchase of all the defects that can take place during the warranty period. This would allow them to have a check on the parts that are most likely to get damaged and can be crucial in enhancing the overall effectiveness 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

Let us discuss them in detail

1. Maruti Suzuki

Maruti Suzuki, positioned 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 visualize the reason for it being the undoubted leader in that list is Big Data and analytics. Yes, you read that right. Their “Market to One” tactic has been the main reason behind their customer holding the policy.

Market to One methodology is all about providing a customized experience to each of its customers and this method has paid off for them as Maruti Suzuki witnessed an overall growth of three percent in the first seven months after implementing this approach. The mainstay of this approach has been SAS, a software suite for advanced data analytics, which improved them to create a 360 degrees view of more than 10 million of their customers.

2. General Motors

General Motors, the biggest American automobile company has been the innovator of Big Data and analytics in the automotive industry. Cars with sensors and processors are common these days. General Motors has sensors and telematics within the car as its center of interest as it recovers 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 huge savings of up to $800 per car. What made this possible? Of course, Big Data and analytics. The concept of connected cars is made likely only because of Big Data and it is saving a lot of dollars for General Motors.


With the brisk increase in the developments from the technological world, who would’ve thought that it can change the way we drive our vehicles. We possibly never imagined that our cars might be connected to the internet someday and this is what the power of technology is. All the wonderful 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 improvements since the amount of data collected for all these developments increases hugely. Big Data has finally incited the automobile industry.