Regional Deep Dive: How Connected Services Are Transforming Automotive Customer Experience in Europe and Asia
Introduction
The automotive industry is undergoing a profound transformation, driven by digital innovation, evolving consumer expectations, and the rise of connected services. Nowhere is this shift more pronounced than in Europe and Asia, where original equipment manufacturers (OEMs) are leveraging connected services—such as predictive maintenance, in-car payments, and integrated digital ecosystems—to meet unique regional customer expectations and regulatory demands. This regional deep dive explores how these markets are embracing connected services, the differences in adoption and consumer preferences, and the evolving role of dealers in delivering exceptional customer experiences.
The Connected Services Revolution: A Global Imperative with Regional Nuance
Globally, the automotive sector is moving beyond the traditional model of one-time vehicle sales. Instead, OEMs are focusing on maximizing Customer Lifetime Value (CLV) by engaging customers throughout the ownership journey. Connected services are at the heart of this strategy, enabling ongoing, value-driven interactions that foster loyalty, unlock new revenue streams, and differentiate brands in a competitive landscape.
However, the path to connected services leadership is shaped by regional factors:
- Europe is characterized by stringent data privacy regulations, a mature digital infrastructure, and a growing appetite for sustainability and flexible mobility solutions.
- Asia—particularly China and emerging APAC markets—features rapid digital adoption, a younger, tech-savvy customer base, and a willingness to embrace new business models such as direct-to-consumer (D2C) sales and mobility-as-a-service.
Europe: Data-Driven Personalization and Ecosystem Integration
Customer Expectations and Regulatory Environment
European consumers expect seamless, personalized digital experiences that mirror the best of retail and technology. Yet, data privacy is paramount—regulations such as GDPR require OEMs to be transparent, secure, and customer-centric in their data strategies. According to recent research, only 7% of European car owners interact with official brand apps, highlighting a significant opportunity for OEMs to enhance the utility and relevance of their digital offerings.
Leading Connected Services in Europe
- Predictive Maintenance: European car owners rank predictive maintenance as the most valuable digital service, with 34% citing it as their top choice. By leveraging real-time vehicle data and machine learning, OEMs can proactively alert owners to potential issues, schedule service appointments, and even pre-order parts—minimizing downtime and enhancing satisfaction.
- In-Car Payments and OTA Updates: Features such as in-car payments for parking, tolls, and EV charging, as well as over-the-air (OTA) software updates, are becoming standard. These services not only add convenience but also open new revenue streams and keep vehicles current throughout their lifecycle.
- Integrated Digital Ecosystems: European OEMs are consolidating digital offerings into unified platforms, making it easy for customers to access maintenance, insurance, mobility services, and infotainment in one place. This approach is essential for meeting high expectations for convenience and personalization.
The Role of Dealers
While digital channels are gaining ground, dealerships in Europe remain pivotal—especially for test drives, vehicle delivery, and post-sale support. The dealer’s role is evolving from sales agent to experience consultant, providing education on new technologies (such as EVs) and facilitating seamless handoffs between online and offline touchpoints. Open data sharing between OEMs and dealers is critical for delivering a consistent, personalized customer journey.
Asia: Rapid Digital Adoption and New Mobility Paradigms
Customer Preferences and Market Dynamics
Asia’s automotive markets, particularly China, are at the forefront of digital adoption. Consumers are younger, more digitally native, and open to innovative business models. Direct-to-consumer sales, made-to-order vehicles, and mobility subscriptions are gaining traction, supported by robust digital platforms and a willingness to experiment with new services.
Leading Connected Services in Asia
- Digital Ecosystems and Super Apps: Asian OEMs are integrating a wide array of services—vehicle management, payments, mobility, and lifestyle offerings—into comprehensive digital ecosystems, often accessible through super apps. This holistic approach reflects consumer demand for convenience and one-stop solutions.
- Mobility-as-a-Service (MaaS): Subscription models, car-sharing, and on-demand mobility services are particularly popular in urban centers, where flexibility and sustainability are key. OEMs are partnering with tech giants and mobility providers to deliver seamless, integrated experiences.
- Personalization and Data Utilization: With fewer regulatory barriers than Europe, Asian OEMs can leverage customer and vehicle data more freely to deliver hyper-personalized services, from usage-based insurance to targeted offers and dynamic content.
The Role of Dealers
In many Asian markets, the traditional dealership model is being reimagined. Dealers are shifting from inventory management to providing high-touch delivery, education, and aftersales support. In China and India, for example, consumers increasingly purchase vehicles directly from manufacturers, with dealers serving as delivery and service hubs rather than primary sales channels.
Key Differences: Adoption Rates, Consumer Preferences, and Dealer Roles
- Adoption Rates: Asia leads in digital adoption and willingness to embrace new mobility models, while Europe is more measured, balancing innovation with regulatory compliance and privacy concerns.
- Consumer Preferences: European customers prioritize data privacy, sustainability, and seamless integration across channels. Asian customers value convenience, comprehensive digital ecosystems, and are more open to sharing data for personalized experiences.
- Dealer Roles: European dealers remain central to the customer journey, especially for education and post-sale support. In Asia, dealers are evolving into service and delivery centers, with OEMs taking a more direct role in customer engagement.
Best Practices and Emerging Trends
- Unified Digital Ecosystems: Both regions are moving toward integrated platforms that consolidate services, reduce friction, and enable personalized engagement at scale.
- Predictive and Proactive Services: Predictive maintenance, usage-based insurance, and real-time service recommendations are driving loyalty and recurring revenue.
- Data-Driven Personalization: Success hinges on the ability to unify customer and vehicle data, deliver relevant offers, and maintain transparency and trust—especially in Europe.
- Ecosystem Partnerships: OEMs are collaborating with insurers, charging networks, and mobility providers to expand their value proposition and meet evolving customer needs.
Conclusion: Tailoring Strategies for Regional Success
The transformation of automotive customer experience through connected services is a global phenomenon, but success depends on understanding and adapting to regional nuances. In Europe, the focus is on data privacy, ecosystem integration, and the evolving role of the dealer. In Asia, rapid digital adoption, comprehensive digital ecosystems, and new mobility paradigms are reshaping the landscape.
OEMs that tailor their strategies to these regional dynamics—investing in unified digital platforms, predictive services, and collaborative ecosystems—will be best positioned to maximize customer lifetime value, foster loyalty, and lead the next era of automotive innovation.
Ready to accelerate your regional strategy? Connect with Publicis Sapient’s experts to discover how we can help you design and implement connected services that resonate with your customers—wherever they are.