The Connected Car Data War: Access, APIs, and the Fight for the Owner
Automotive retailers are facing an unprecedented strategic challenge as vehicles transition to Software-Defined Vehicles (SDVs). This shift is fundamentally reshaping the service relationship, accelerating the trend of customer defection by shifting the entire vehicle health monitoring process from the physical service drive to the OEM’s cloud. For dealerships and vendors, the battlefield for retention is no longer the quality of the experience, but the agility of the data stream.
The core of the problem is that OEMs capture the telemetry required for proactive maintenance before the customer even thinks about calling the dealership. This critical diagnostics and performance data, once accessible only via a physical connection to the OBD-II port, now flows seamlessly over the vehicle’s embedded telematics system.
Will OEMs Share Connected Data with Their Dealer Partners?
The short answer is yes, but with limitations and risk.
OEMs rely on their franchise network to execute warranty work and maintain brand standards. They are strategically incentivized to provide dealers with the first-party data necessary for proactive communication and efficient service scheduling. You are already seeing this through:
Remote Diagnostics: Access to high-level system alerts and Diagnostic Trouble Codes (DTCs), enabling dealers to preemptively contact an owner about an impending failure identified via the data pipeline.
Predictive Maintenance: Leveraging proprietary algorithms to anticipate wear and tear, using vehicle APIs to transmit alerts like “Next Service Due” directly to the dealership’s DMS.
However, this data sharing is not altruistic or free-flowing. It is typically governed by restrictive, non-negotiable Data Sharing Agreements (DSAs) or Dealer Information Security Agreements (DISAs). These agreements often impose significant, sometimes cost-prohibitive, obligations on the dealer, including data security requirements, mandatory IT audits, and broad indemnification clauses, making the dealer financially liable in the event of a data breach. In essence, OEMs share data but retain ownership and control, making the dealer a highly regulated extension of their cloud-based ecosystem.
Will OEMs Block Third-Party Telematics Devices?
They already are. The aftermarket is facing a systemic lockout.
In the past, third-party telematics vendors (such as fleet managers or insurance partners) accessed the rich stream of data by plugging a device into the OBD-II port and listening directly to the vehicle’s Controller Area Network (CAN) bus.
Today, new vehicles increasingly use encrypted communication protocols and move critical diagnostic functions away from the physical OBD-II port and into the cloud. OEMs justify this closure through cybersecurity and vehicle safety concerns.
The strategic shift is from hardware access to software access:
OEM-Embedded Telematics: The factory-installed Telematics Control Unit (TCU) is the sole, secured gatekeeper of the data pipeline.
The Blocking Mechanism: OEMs control access through their proprietary vehicle APIs. Third-party vendors are often relegated to accessing a limited, low-frequency, and less granular subset of data compared to what the OEM or its authorized dealer network receives. This asymmetry of information is key to the OEM’s strategy of forcing service back to the brand and limiting outside competition.
The Legal and Legislative Fight: Right to Repair 2.0
The struggle for data access is no longer just a business negotiation; it’s a legal battlefield known as the Right to Repair movement.
The most critical precedent involves the Massachusetts Data Access Law (often called Right to Repair 2.0). This law, overwhelmingly approved by voters in 2020 and upheld in recent federal court decisions, is changing the landscape for data control.
The Mandate: The law requires that for Model Year 2022 and newer vehicles sold in Massachusetts that use telematics, the OEM must equip the vehicle with an “interoperable, standardized, and open access platform.” This platform must allow owners and independent repair facilities direct, non-discriminatory wireless access to all mechanical data necessary for diagnosis and repair.
The Impact: While currently limited to Massachusetts, this law serves as a national blueprint for mandatory data access. It fundamentally challenges the OEM’s position that vehicle telemetry is proprietary intellectual property, arguing instead that mechanical data belongs to the owner.
Other Actions: Regulatory bodies like the Federal Trade Commission (FTC) are also actively involved, issuing warnings and taking enforcement action against automakers regarding the opaque collection, use, and sharing of sensitive data (like precise geolocation or driver behavior scores) with third parties (e.g., insurance companies) without explicit consumer consent.
The Dealer Imperative: Insert Yourself into the Lifecycle
The data-driven future is not about simply competing on price or proximity; it’s about leveraging predictive analytics to eliminate the opportunity for defection.
For dealers and industry vendors, the strategic imperative is clear: Dealers must move from being responsive service providers to proactive data stewards to remain embedded in the owner/vehicle lifecycle.
Prioritize Data Integration, Not Just Acquisition: Stop treating connected car data as a “nice-to-have.” Aggressively seek solutions that allow access to granular service and diagnostic data (DTCs, mileage, battery state of charge for EVs). Then, ensure this data is instantly ingested and acted upon by your CRM and service scheduling tools (Xtime, VinSolutions, etc.). Data unification is paramount.
Focus on the Vehicle API, Not the OBD Port: Invest in vendor solutions that specialize in secure OEM API integrations. The era of the simple, universal OBD-II dongle is ending; the future belongs to certified platforms that can securely and legally communicate with the vehicle’s proprietary backend systems.
Use Telematics for Proactive Retention: When your system detects a pending fault or a maintenance milestone via the data stream, the outreach must be immediate, personalized, and convenient. Turn a DTC alert into a personalized text offering a pickup/delivery service option to recapture the convenience factor that independent shops currently leverage.
Connect Fixed Ops and Sales: The diagnostics and maintenance data captured in the service drive is the most valuable sales intelligence you possess. Use this data to trigger a sales appraisal conversation before approving a costly repair. This turns a high-cost service event into a high-value trade opportunity, securing the next sale and closing the owner/vehicle lifecycle loop.
The battle for the vehicle data stream is not a problem for tomorrow; it is happening now. Dealers who fail to embrace data stewardship risk becoming little more than transactional fulfillment centers, while those who adapt will own the customer relationship throughout the vehicle’s life.