Augmented reality (AR) is transforming the way the automotive industry designs, develops, manufactures, and sells cars. AR technology enables car manufacturers to create highly immersive and interactive experiences for their customers, from virtual test drives and product demonstrations to maintenance and repair instructions. AR technology is also making driving safer and more enjoyable by providing real-time information and alerts on the windshield and other parts of the car. In this article, we will explore the benefits of augmented reality in automotive industry and how it is changing the way we drive and interact with cars.

The Benefits of AR in the Automotive Industry

Enhancing the Customer Experience

AR technology allows car manufacturers to provide a more engaging and personalized customer experience. Customers can use AR-powered apps and tools to customize their cars, preview how different features would look in their car, and explore the car’s interior and exterior in 3D. For example, BMW has developed an AR-powered app that lets customers preview how different colors, rims, and options would look on their car. This app also enables customers to take a virtual tour of the car’s interior and learn about its features and functions.

Improving Design and Development

AR technology is revolutionizing the way car manufacturers design and develop cars. By using AR-powered tools, designers and engineers can create 3D models of cars and test different features and configurations in a virtual environment. This enables them to identify and solve potential problems early in the development process, reducing costs and time-to-market. For example, Ford uses an AR-powered tool called the Virtual Assembly Plant to simulate the assembly line and optimize the production process.

Enabling Virtual Test Drives

AR technology enables car manufacturers to offer virtual test drives, which are safer, cheaper, and more convenient than traditional test drives. Customers can use AR-powered apps and tools to simulate driving the car on different terrains and in different conditions, such as snow, rain, or night. This enables them to experience the car’s performance and handling without leaving their homes or risking accidents. For example, Volvo offers a virtual test drive of its XC90 model using an AR-powered headset.

Providing Real-Time Information and Alerts

AR technology is making driving safer and more enjoyable by providing real-time information and alerts on the windshield and other parts of the car. This enables drivers to stay focused on the road while accessing important information, such as speed, navigation, and weather. For example, Mercedes-Benz has developed an AR-powered windshield called the MBUX Hyperscreen that displays a wide range of information and controls, including music, climate, and apps.

Challenges and Future Outlook

Despite its numerous benefits, AR technology still faces some challenges in the automotive industry, such as high costs, technical limitations, and privacy concerns. However, these challenges are expected to be addressed as the technology evolves and becomes more accessible and affordable. The future outlook for AR in the automotive industry is promising, as more car manufacturers are adopting the technology and exploring new applications and use cases. Some of the potential future uses of AR in the automotive industry include:

  • AR-powered maintenance and repair instructions
  • AR-powered driver assistance and safety features
  • AR-powered vehicle-to-vehicle communication
  • AR-powered remote diagnostics and assistance


Augmented reality is a game-changing technology for the automotive industry, enabling car manufacturers to enhance the customer experience, improve design and development, offer virtual test drives, and provide real-time information and alerts. AR technology is also making driving safer and more enjoyable by enabling drivers to access important information without distractions.