June 13, 2025 Privacy First: Automakers & Connected Cars

For truly “smart” vehicles & driver trust, automakers must champion privacy: data minimization, edge computing, consent, & privacy by design.

By Boaz Mizrachi, CTO and Founder of Tactile Mobility

Drivers have grown increasingly uneasy about how much data smart cars collect – and how little control they have over it. From real-time locations and voice recordings to biometric indicators and behavioral driving patterns, the range of data that modern vehicles can capture is staggering. And yet, despite mounting public concern, automakers have been slow to respond in any consistent or coordinated way.

As vehicles have evolved into rolling computers – equipped with dozens of sensors, real-time connectivity, and advanced analytic capabilities – the data they generate has become central to automakers’ operations. Whether used for predictive maintenance, real-time route optimization, driver personalization, or new revenue streams, vehicle data is a valuable asset. But the more valuable it becomes, the more critical it is to ensure it’s protected.

Consumers may not fully understand the inner workings of connected vehicles, but they’re not naive. Many drivers are uncomfortable with the sheer amount of info that their cars seem to have on them, not to mention the lack of control they have over the process. Increasingly, people are recognizing that privacy risks aren’t confined to smartphones and websites; they’re now embedded in the everyday act of driving.

Where the risks are growing

The expanding digital ecosystem of vehicles introduces a catalog of potential vulnerabilities. Every new connected feature adds another point where information can be intercepted, leaked, or misused, whether it’s a built-in system from the automaker, a third-party integration enabled through partnerships, or an app added by the driver.

For example, infotainment systems may sync with a driver’s phone, uploading contact lists or message history without explicit consent. Telematics platforms – systems that combine GPS, onboard diagnostics, and cellular connectivity – may continuously transmit vehicle performance data and driving behavior to insurance companies or fleet operators. Voice assistants could record and store conversations in the cloud, even after the engine is off.

Beyond the risk of direct data leaks, connected vehicles also raise concerns about how data can be aggregated and analyzed to reveal sensitive personal information. As cars become integrated into broader smart city infrastructure and edge-cloud computing networks, they enter a sprawling web of interconnected systems. In that context, data brokers, advertisers, or other third parties can cross-reference vehicle data with external sources to reconstruct detailed profiles of individuals. Without strict safeguards, driving patterns could be used to infer everything from daily routines and political affiliations to medical conditions.

In the near future, we’ll likely see greater scrutiny of data-sharing partnerships, new regulations around how driver data is sold or repurposed, and legal battles over consent and ownership. Companies that haven’t laid the groundwork for robust data protection could find themselves playing catch-up in a high-stakes regulatory environment.

What Automakers Can Do Now

While the challenges are complex, automakers are not powerless. There are proven best practices that can meaningfully reduce the privacy risks of connected vehicles. One of the most important principles is data minimization: collecting only the information that’s necessary for a feature to function, and discarding it once it’s no longer needed. For instance, if a sensor is needed to detect road grip or tire pressure, the data should be used in real-time and processed locally, without being stored indefinitely or transmitted unnecessarily.

Another key practice is edge computing: processing data at the vehicle level rather than sending it to the cloud. For example, some manufacturers now use onboard processors to analyze sensor inputs locally, enabling features like adaptive cruise control or collision detection without transmitting raw data externally. This approach not only limits the exposure of sensitive information, it also reduces latency and bandwidth. When data must be transmitted off-vehicle, it should be encrypted end-to-end and stored with strict access controls.

Transparent and informed consent is also vital. Drivers should be clearly informed about what data is being collected, how it’s used, and what choices they have in the matter. Too often, privacy policies are buried deep in user agreements, written in opaque language, and designed to encourage passive acceptance. Automakers can improve trust by making consent mechanisms clear, customizable, and easy to update.

Finally, companies must embrace privacy by design, embedding privacy considerations into every phase of product development, rather than adding them after the fact. This means involving privacy engineers and legal experts early in the development cycle, evaluating potential privacy risks before launch, and fostering a culture of accountability.

A New Definition of “Smart”

As cars evolve to include self-driving features, electric powertrains, and constant digital connectivity, privacy must become part of what defines a “smart” vehicle. A truly smart car doesn’t just gather data – it knows when to hold back. Principles like data minimization and privacy by design are essential to achieving this, ensuring that vehicles collect only what’s necessary and embed privacy protections from the outset.

This is more than a compliance issue – it’s a matter of brand integrity and consumer trust. In a market where drivers are increasingly tech-savvy and privacy-conscious, the companies that lead on privacy will have a distinct advantage. We’ve already made great strides in making cars safer, faster, and more efficient. The next step is to make them more private.

About the Author:
Boaz is a veteran technologist and entrepreneur, holding over three decades of experience in signal processing, algorithm research, and system design in the automotive and networking industries. He also brings hands-on leadership skills as the co-founder and Director of Engineering at Charlotte’s Web Networks, a world-leading developer and marketer of high-speed networking equipment (acquired by MRV Communications), and as System Design Group Manager at Zoran Microelectronics (acquired by CSR).

tactilemobility.com

Subscribe to Industry Today