EU's Data Act: A Game Changer for Car Services Groups

The European Union (EU) is set to introduce a comprehensive horizontal regulation, the Data Act, which will significantly expand rights of access to raw and service data, including metadata, for connected products like vehicles. This regulation aims to harmonize rules ensuring fair data access for users and approved third parties, fostering innovation and competition in the automotive industry. The Data Act, expected to take full effect in September 2025, will have significant implications for car services groups, original equipment manufacturers (OEMs), and aftermarket providers.



The Data Act will enable car services groups to access vehicle data more easily, allowing them to develop new services and applications, and potentially lowering costs for consumers. Increased competition in after-sales services and applications may lead to better services and lower prices for consumers. Car services groups should invest in data analytics and digital capabilities to leverage the new data access opportunities and stay competitive.

OEMs will need to review their data access and security strategies, as the ruling in Case C-296/22 requires them to provide full access to information needed for vehicle repair and maintenance without undue restrictions. They should focus on managing cybersecurity risks without impeding data access, as the ECJ clarified that security measures should not restrict access to data. OEMs may need to invest in secure data platforms and APIs to facilitate data sharing while ensuring data privacy and security. They should also consider partnerships with aftermarket providers to develop joint services and applications, leveraging their respective strengths.

Aftermarket providers should invest in data analytics and digital capabilities to develop new services and applications using the expanded data access. They should also focus on ensuring data privacy and security, as the Data Act will require them to comply with relevant regulations. Aftermarket providers may need to collaborate with OEMs to access vehicle data and develop joint services, as well as with other aftermarket providers to create a more competitive ecosystem. They should also consider investing in secure data platforms and APIs to facilitate data sharing and integration with other services.

In conclusion, the EU's Data Act will significantly impact the competitive landscape for car services groups, OEMs, and aftermarket providers. Investors should expect strategic adjustments from these players, including investments in data analytics and digital capabilities, partnerships, and a focus on data privacy and security. The new data access opportunities may lead to better services and lower prices for consumers, fostering innovation and competition in the automotive industry.