Blockchain technology, which has already disrupted the financial services and supply chain industries, has at last arrived in the auto industry. Since the advent of cars, the automotive industry has always embraced technological advances, but the pace of change has accelerated so rapidly that auto original equipment manufacturers (OEMs) worldwide are struggling to keep up. Automotive industry is changing, and blockchain will make a significant impact on that change. Over the past year or so, stakeholders in the auto industry have been looking into how blockchain technologies can be applied in businesses and are looking to launch major initiatives.
With the rise of autonomous cars and millions of devices communicating with each other. There is a need that these interactions and transactions exist on a immutable database of shared, secure, and highly permissioned access. A shared ledger between automotive OEMs, parts distributors, dealers, service mechanics, insurance providers, and others could support the ability for parts or equipment within a car to autonomously sense its own needs. For instance, a car could advise the driver about the need for repair, contact remote users for updates or nearby suppliers for replacement parts, negotiate pricing and appointments for service and repairs, authenticate the proper technician, and process the respective payment for services.
A car manufacturer must wait several weeks or months before it receives payment for a shipment of vehicles from an importer/distributor/dealer. With multiple parties controlling different steps in the chain it is a heavy flow of paperwork. A Blockchain based system would enable greater transparency of accurate information between the different parties, faster processing of export/import and banking documentation and ultimately reduce the settlement period.