EVs: consumers must get comfortable with sharing data

To achieve net zero emissions by 2035 in Australia, 75% of new car sales need to be electric. Australia is currently at 1%.

The move towards electric vehicles (EVs) as mainstream is accelerating however, with a series of strategies and incentive schemes announced by state governments, and the federal government partnering with the private sector to fund 50,000 charging stations in Australian homes.

But these efforts will be in vain without the mindset shift required to realise the true potential of EVs. Consumers must accept that they cannot properly experience the levels of connectedness, personalisation and automation promised by an EV without a willingness to share their personal data.

Beyond government funding and incentives, the issue of consumer trust will drive a number of additional stepping stones for consumers and manufacturers amid the shift to EVs in Australia.

Data-sharing hesitancy

Connected cars have come a long way since the Benz Patent Motor Car, now featuring in-vehicle access to the internet, smart entertainment systems and high-tech cameras to improve safety. And it doesn’t stop there — further capabilities will be revealed as we work towards the ultimate goal of zero-emissions, zero crashes and reduced traffic jams.

These capabilities rely on the collection of data while the vehicle is active. However, according to a research report commissioned by the Australian Automotive Aftermarket Association (AAAA), 78% of drivers are unaware that their vehicle is transmitting data back to the car manufacturer, and 71% are extremely or very concerned about the potential risks that come with data sharing.

When it comes to vehicles, physical security is a significant concern among consumers when opting in to share data. Fears include:

• Am I constantly being tracked, including speed and distance?
• Could my insurance increase due to data monitoring?
• Is data being collected with commercial intent, and will I be hit with personalised advertising as a result?
• What happens if my data is hacked?
   

When you consider these fears in relation to smartphones, not many users would bat an eyelid. This may be due to the acceptance of a fair data exchange, or because a lot of people don’t actually realise how much data they are providing. Likely, the perception of physical risk means data sharing while driving is more heavily scrutinised by consumers.

Transparency key to unlocking consumer trust in the automotive sector

To create a ‘frictionless’ future for electric vehicles, manufacturers will require consumers to provide permission for their data to be collected and analysed to improve their overall driving experience. Telco providers already require the same of smartphone users, and banks of credit card holders. But as a sector not necessarily known for data sharing, the automotive industry will need to take careful steps to earn and maintain this trust, with a strong emphasis on privacy and security.

A transparent relationship between consumer and manufacturer will be critical to this shift, including the choice to opt in and out of data sharing and constant reassurance of data and privacy protocols.

Consumers need to be clearly shown what can be achieved from in-depth analysis of in-vehicle data about both the driver and the vehicle, and why their personal information is required to achieve it.

The trade-off

Some of the features of EVs that will be made possible by data sharing are:

Customised entertainment systems: Like smartphone applications, in-vehicle systems will be able to customise products and services to each individual user.

Comfort: Many of us share a vehicle with a partner or family member, which can be frustrating when switching regularly. Having the option to click a button to customise seat position and temperature, for example, will save time and limit frustration.

Increased focus on safety: Looking to the future of connected cars, consented data could be shared with ‘smart’ cities to improve safety. For example, data from a vehicle that demonstrated a wheel slip on a frosty day could automatically alert city authorities to fix the issue, and even inform other drivers in the area.

Manufacturers and consumers will have important parts to play in ensuring the success of EVs. The automotive industry must position itself as transparent and trustworthy, and consumers must get comfortable with sharing their data for a comfortable ride.

Image credit: ©stock.adobe.com/au/zapp2photo