1. Bolster data governance: Strengthen data protection strategies to minimize cybersecurity and privacy litigation risks.

2. Manage performance claims: Ensure transparency and accuracy in EV performance disclosures to deter consumer lawsuits.

3. Proactively address liability: Develop clear agreements and protocols with suppliers to navigate disputes before they enter the courtroom.

As computers increasingly share the driver’s seat, every innovation could bring a cascade of legal challenges. For the third year in a row, Autonomous Vehicle (“AV”) safety is top-of-mind for our respondents, with 62% identifying disputes involving autonomous and ADAS technologies as their top litigation concern. In these cases, questions of culpability are becoming increasingly intricate as software-driven decisions take center stage.

 Performance claims for electric vehicles (27%) are also a growing area of litigation, with lawsuits addressing everything from alleged range overstatements to battery durability, time-to-recharge, and software issues. Thirty-four percent of respondents also flagged recall and warranty cost recovery disputes as a persistent challenge, reflecting ongoing disputes over financial responsibility for non-conforming parts. Consumer protection and “Right to Repair” litigation (35%) adds another layer of complexity, balancing intellectual property protections against demands for greater access to repair tools and diagnostics. Finally, the risk of nuclear verdicts (22%)—damages so large they can impact a company’s financial stability—continues to raise the stakes in the courtroom.

For automotive industry players, managing these risks means proactively ensuring compliance with evolving regulations, establishing clear contractual terms in supply agreements, and maintaining consumer transparency to preempt disputes.

Today’s cars don’t just navigate roads; they navigate a web of data that’s increasingly under scrutiny in courtrooms. With 56% of respondents citing cybersecurity and privacy litigation as a primary concern, it’s clear that data-related lawsuits are impacting legal strategies across the automotive sector.

These cases often center on the personal data collected by connected vehicles and the potential misuse or exposure of this information. In an environment where class actions and regulatory fines are possible and legal precedents are being set, automotive companies face the growing challenge of defending their practices.