Connected Vehicles: The Good, The Bad, and The Ugly
WORDS BY ANBY ALCOMENDAS
Connected vehicle technology is changing the way fleets operate. From real-time telematics and remote diagnostics to over-the-air software updates, connected systems can improve efficiency, support maintenance planning and give fleet managers greater visibility of their vehicles.
However, greater connectivity also brings new challenges. Modern vehicles can collect extensive amounts of personal and operational data, communicate with external networks and allow certain functions to be controlled remotely. These capabilities raise important questions about cybersecurity, privacy, data ownership and accountability.
Recent concerns in Australia have brought these issues into sharper focus, prompting industry groups to call for clearer information and stronger safeguards. Understanding both the benefits and risks of connected vehicles is becoming an important part of procurement and risk management.
The good: Smarter vehicles, better fleet management
Connected vehicles offer practical benefits. Telematics systems can provide information about vehicle location, fuel consumption, battery status, driving behaviour and vehicle performance. This information can help managers monitor utilisation, plan maintenance and identify opportunities to improve safety and efficiency.
Remote diagnostics can also help identify potential faults before they lead to breakdowns. Depending on the vehicle and system, connected technology may allow manufacturers and service providers to monitor performance, identify software issues and support maintenance decisions.
Over-the-air updates provide another advantage. Rather than requiring every software change to be installed during a workshop visit, manufacturers can deliver certain updates remotely. This can help address software issues and improve vehicle functionality, although the available
update functions vary between manufacturers and models.
The Australian Government ' s Australian Cyber Security Centre( ACSC) notes that connected vehicles can offer greater convenience, functionality and safety. Its guidance also explains how internet connectivity enables vehicles to communicate with external infrastructure, applications and service providers.
For larger fleets, these capabilities can support more informed decisions. Better data can help identify underused assets, monitor driver behaviour and schedule servicing based on vehicle condition rather than relying solely on fixed intervals.
The benefits, however, depend on the quality of the information collected, how it is used and whether the systems are secure.
The bad: What happens to all that data?
Connected vehicles can generate considerably more information than many drivers realise.
Depending on the vehicle and its features, data may include location history, driving behaviour, vehicle performance, infotainment activity, voice commands and information from connected smartphones. Some vehicles also incorporate cameras, microphones and drivermonitoring systems.
The ACSC ' s Introduction to Connected Vehicles guidance outlines the types of information these systems may collect and the privacy risks associated with storing, transmitting and sharing it. It also warns that data may be handled by manufacturers and third-party service providers, including organisations operating outside Australia.
This raises questions about who can access vehicle data, why it is collected, how long it is retained and whether it is shared with other organisations.
Location data, for example, can reveal more than a vehicle ' s route. It may identify where an employee works,
8 ISSUE 61 OCTOBER 2026 / WWW. AFMA. ORG. AU