A new EU regulation, set to take effect this year, will require automotive manufacturers and suppliers to publicly disclose comprehensive data about their vehicles. This information will be made available through the Digital Product Passport (DPP). 

For consumers, this means greater insight, better decision-making, and increased trust - whether they’re buying, repairing, or recycling a vehicle. For businesses, it represents an opportunity to strengthen customer trust, enhance brand reputation, and build long-term loyalty. Rather than viewing DPP as just another regulatory burden, the automotive sector should see it as a strategic tool - one that offers competitive advantages and opens the door to new growth opportunities in a rapidly evolving, sustainability-driven market. 

Data Management and Technology  

In the automotive industry, the Digital Product Passport (DPP) can help companies strengthen customer relationships. Rather than relying on scattered spreadsheets and manual processes, businesses can streamline their data handling with Product Information Management (PIM) systems - essential tools in successfully implementing the DPP.

A PIM system allows businesses to collect, organize, and distribute product data across multiple platforms, ensuring that information - ranging from vehicle components to environmental impact - is accurate and easily accessible. This structured approach benefits both internal teams and customers.By acting early, businesses not only ensure compliance with upcoming regulations but also position themselves strategically. Investing in a PIM system includes choosing the right technology and training staff to use it effectively. Taking these steps now will prepare your company to manage its product data efficiently and be fully ready when the DPP becomes mandatory. 

Opportunities and Competitive Advantages

Companies that adapt quickly and embrace the new requirements have a unique opportunity to stand out from the competition. The Digital Product Passport (DPP) provides a platform to demonstrate a company’s commitment to sustainability, transparency, and responsible production - qualities that are increasingly important to both consumers and B2B partners. When used strategically, the DPP can enhance brand reputation, build customer trust, and improve competitiveness. It has the potential to attract new customers and even win over clients from competitors.  

Ultimately, this is not just about regulatory compliance - it’s about leveraging the new digital infrastructure to create value and set yourself apart in the market. 

The practical aspects 

To succeed, companies must invest in Product Information Management (PIM). An effective PIM system is key to meeting DPP requirements in the automotive sector. These systems collect and centralize data from multiple sources - including ERP systems - and ensure it is always accurate and accessible.  

The Digital Product Passport (DPP) presents both a challenge and an opportunity. While the transition may require significant investment and operational changes, it will ultimately support a more transparent and sustainable automotive industry in the long term.