- Approyo
SAP S/4HANA Driving Digital Transformation In The Automotive Industry

The automotive industry has changed drastically over the past 50 years, but is expected to change even more so by the year 2025. With new innovation every year, and growing expectations, companies need to work to meet the demands of their consumers. Self-driving cars, electric cars, and mobility as a service (such as Uber or Taxis) are just a few examples of the new innovations we've seen come forward in the past years. It is predicted that the sales of electric vehicles will increase to 10 million in 2025 and then will surge to 56 million by 2040. As goes for mobility as a service, the market is
expected to reach $9.2 trillion in 2030. The theme of sustainability as well as urbanization hold a large role in the purchasing behaviors of cars, but companies need to know the 5 W's in order to understand the reasons behind them. Collecting data is what will help automotive companies adapt to real-time data and insights, driving their business decisions, ultimately increasing ROI.
Many people don't have a full grasp of how big the automotive industry actually is. We're not just talking about car manufacturers here, as this benefits all parts of the industry, including public transportation, fleet and delivery, parking, ridesharing, etc. This explains why automotive industry data is predicted to become a US$450‒$750 billion market by 2030.
Customer-centricity and mobility is at the forefront of concern in today's environment. Being able to collect data on physical vehicles with qualities such as its weight, engine performance, dimensions, battery life, etc. as well as qualities of the owner of that vehicle allow companies to better adapt to purchase behaviors and interests. Tracking the location, number of owners, registration and other official documents give insights into what drives customers' decision, adapting and allowing to build brand loyalty and improving customer experiences.
This is where SAP S/4HANA comes in. Utilizing the Intelligent Enterprise in the Automotive Industry allows companies to intelligently manufacture vehicles and the services behind them to best fit their customer base, putting their customer at the forefront of priorities. Meeting market expectations and real-time supply chain planning features help meet demands using AI, IoT, blockchain, etc. The most innovative capabilities all in one, can only improve your business for the better.
Below are just some of the possibilities that SAP S/4HANA offers to Automotive industry companies:
Improve Research & Development
Idea and project management
transfer engineering data into production data
Control costs and requirements of products
Ensure safety and chemical compliances
Accelerate time to market
Automate Promotions and campaign effectiveness
Consolidate and manage financial transactions and billing
Create positive customer experience with omnichannel capabilities
Digital Asset Management
Accelerate sales cycle
Insight into customer interests
Organize marketing budget and spend
Smart Mobility & Transformation
Improvement of Freight management and collaboration
Execute transportation efficiency and track deliveries
Automate subscription billing
predictive maintenence = avoid downtime
create customer-centric subscription packages
There are many more benefits to implementing SAP S/4HANA and its not limited to only the automotive industry, but throughout all industries and companies of all sizes. With the upcoming deadline of SAP ECC support in 2027, those running SAP will have to upgrade. Don't wait until the last minute to innovate, get ahead of the competition and transform your business.
Approyo is a global cloud-centric Managed Solutions Provider. We provide SAP Solutions and Support to customers and partners throughout the globe on a 24/7 basis. Our team of experts specializes in implementations, upgrades, and migrations onto SAP S/4HANA and any other SAP core competencies. If you would like more information or would like to request a free consultation with our executive team, contact us today.
Also, check out our Case Study, "Saving The Trucking Industry", to see one of the many ways that SAP S/4HANA benefits the Automotive industry.
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