A NEW PARADIGM FOR AUTOMOTIVE OEMS IN THE RIGHT TO REPAIR ERA: TRANSFORMING REGULATORY COMPLIANCE INTO COMPETITIVE ADVANTAGE WITH AI AND STRATEGIC COMPLEMENTARITY

Abstract

The Right to Repair (R2R) era is transforming the automotive industry, requiring a balance between protecting OEM innovations and ensuring consumers’ freedom to choose aftermarket repair options. For automotive OEMs, R2R presents both a regulatory challenge and a strategic opportunity. This study uniquely integrates the emerging R2R discourse with Artificial Intelligence (AI), proposing a holistic, three-pillar strategy that combines technology, business model innovation, and legal tech adoption. Grounded in the theory of strategic complementarity, it demonstrates—using qualitative secondary data—that coordinated efforts across these pillars generate significantly greater value than isolated initiatives. By aligning AI-driven compliance with competitive strategy, OEMs can convert R2R obligations into market advantages. Supported by real-world case studies, the paper provides forward-looking recommendations illustrating how synergistic integration of technology, legal frameworks, and governance mechanisms enhances sustainability, innovation, and long- term competitiveness in the automotive ecosystem.