How the EU Data Act will transform automotive manufacturing

The EU Data Act officially came into force in January 2024. However, from September 2025 vehicle owners gain direct control over their data. In the past, manufacturers decided who had access, now the decision will rest with the owner. This will transform how vehicles are manufactured, repaired, and insured.

The challenge of sharing data

The EU Data Act mandates that manufacturers provide vehicle owners with free access to their data and enable them to share this data with third parties of their choosing. This will require manufacturers to make significant changes to their data management systems to allow smooth and secure access.

Manufacturers will need to create systems that ensure that only authorised individuals and entities can access the data. A failure to properly secure this data could lead to unauthorised access and, potentially, breaches of compliance.

Transparency is also a major requirement. Manufacturers will need to inform owners about what data is being collected, how it is being used, and who has access. Clear communication is paramount to preserving trust, and a lack of transparency could result in regulatory penalties.

Robust identity verification is key

Manufacturers need to create a secure, transparent infrastructure that allows data access while ensuring that only verified parties can interact with vehicle data. This includes implementing strong identity verification systems.

Having strong verification processes ensures that only authorised users and third parties can access vehicle data.

The infrastructure for secure data sharing also needs to be scalable and future-proof. It’s vital that manufacturers don't just focus on ticking boxes but think about how they can build trust with consumers by maintaining transparency and providing simple ways for vehicle owners to manage their data.

Marcel Wendt, CTO and founder at Digidentity says: “Our Digidentity data shows that 64% of drivers feel they lack control over their vehicle’s data protection. It’s paramount that manufacturers are setting themselves up for success at the earliest possible moment and embedding identity verification and security from the start. It’s not just about compliance but also maintaining competitiveness.”

In a world where data breaches are becoming more common, people are valuing their data more than ever and cautious how their data is stored.

However, it’s imperative to recognise that this is not just about compliance, but about creating a sustainable, secure approach to data management that benefits both the business and consumers in the long run.

For more information on what drivers are looking for when it comes to data transparency, read our report Driving Data Care.