KPMG Survey: Automakers ramp up data privacy efforts to keep pace with connected cars

Sept 3, 2024 – A new KPMG study found that balancing data-driven innovation with customer and regulator concerns about collection, usage, and sharing is a significant undertaking that is under way with automakers across the globe.

About nine out of ten automotive leaders (86%) say they have significantly or moderately increased their privacy program budgets.

KPMG explored how automakers are thinking about customer privacy in a survey of 50 leaders from around the globe and a series of interviews with privacy leaders at global automakers. The findings and insights are revealed in a new report, “Driving trust: Consumer privacy and auto manufacturers.”

The KPMG survey suggests that automakers recognize that customer privacy and data management is a priority and are taking steps to balance ethical collection and use of customer vehicle data with innovation and data monetization.

"In an era where consumer privacy is a top priority, automakers are at a crucial crossroads. Balancing innovation with privacy is not just a necessity; it's a strategic differentiator that can drive trust and loyalty among customers," says Orson Lucas, KPMG automotive privacy services leader. “Data management presents an opportunity to be the auto privacy company, making this a pillar of their brand identity.”

Automakers are now tasked with managing an exponentially growing volume of data in a way that protects privacy and meets regulatory requirements.

“Automakers face a challenge familiar to many businesses where technology innovation developed faster than the processes and systems to manage it – in this case connected cars and their data collection,” says Gary Silberg, KPMG automotive leader.

Nearly all (96%) of the organizations polled indicated that they conduct internal and external reviews to assess the effectiveness of customer vehicle data controls.

The automotive industry is still in the early stages of implementing and adopting leading privacy practices but have made good strides in key domains.

“Automakers are on a learning curve similar to those encountered by tech companies and healthcare on their data privacy journeys, but without the same level of experience in handling customer data,” says Lenny LaRocca, Advisory Partner in the KPMG automotive practice.

This includes understanding the full scope of the data vehicles are collecting, being transparent with customers about data collection and usage, and putting privacy front and center from initiation of product and service design to conception.

Almost three-fourths (74%) focus on customer-centricity, simplicity and user experience but only 16% explicitly use terms such as “privacy by design” or “privacy by default” to identify a strategy to accomplish that goal. Privacy by design is building in privacy requirements early in the development lifecycle. Privacy by default means the default is the most private setting when the customer engages with a product.

Innovative technologies can play a key privacy role.

As automakers continue expanding the technological capabilities of their vehicles traditional methods to manage privacy may not be enough. New privacy-enhancing technologies will help them stay ahead of the curve.

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