Across automotive sales, SAP customers are treating S/4HANA migrations as the backbone of their transformation programs, rebuilding processes from plant operations to dealer and retail sales on a unified digital core that connects manufacturing, logistics, and customer engagement.
In Argentina, Prestige Auto and Softtek have signed an agreement with SAP Argentina to modernize the core ERP systems underpinning Mercedes-Benz operations in Argentina. Prestige Auto, which runs Mercedes-Benz’s local operations, has launched a major SAP cloud transformation to align with this global direction.
Working with SAP Argentina and systems integrator Softtek, the company is migrating its core ERP systems from SAP ECC to SAP S/4HANA on Microsoft Azure, establishing a cloud-first foundation designed for operational agility and AI-driven growth.
Analysis
What This Means for ERP Insiders
As more automotive processes move into the cloud, decisions about ERP architecture and deployment models now determine how quickly OEMs can adjust production, rebalance inventory, and respond to shifts in demand across dealer networks.
According to Precedence Research, the cloud computing in automotive market is projected to grow from 8.31 billion USD in 2024 to 36.96 billion USD by 2034, at a CAGR of 16.09%, as OEMs move more vehicle, supply chain, and customer processes into cloud platforms.
With software‑as‑a‑service already accounting for around 40% of automotive cloud spending, these ERP decisions are increasingly strategic, not just technical.
In South Africa, Toyota South Africa Motors modernized its core vehicle management and HR systems through a migration to SAP S/4HANA with IBM, enabling real-time data visibility, improved inventory optimization, and faster responsiveness to customer demand. The project was delivered with minimal disruption, highlighting the importance of continuity in large-scale automotive operations.
At the customer experience layer, Saudi Arabia based BMW Group KSA has taken a different but complementary approach, using SAP Customer Data Platform (CDP) to unify first-party customer and ERP data into a single view. This has enabled AI-driven personalization and real-time engagement across channels, allowing the company to move from fragmented interactions to data-led, one-to-one customer experiences.
Precedence Research also notes that public cloud remains the largest deployment model in automotive today, while hybrid cloud is forecast to be the fastest‑growing segment, with a CAGR of nearly 20% through 2034 – mirroring the SAP S/4HANA on hyperscaler and hybrid ERP landscapes emerging at Mercedes‑Benz Argentina and Toyota South Africa.
Analysis
What This Means for ERP Insiders
Modern ERP migrations sit at the heart of this shift. Moving to a cloud-based, standardized ERP platform gives automotive groups a unified data foundation that spans plants, logistics partners, and retail networks. This makes it easier to orchestrate end‑to‑end flows and embed AI into planning, pricing, and service processes, which in turn enables low‑disruption change – allowing brands to modernize without pausing production lines or sales operations.
A Modern ERP Core for Business Continuity
The Prestige Auto transformation reflects a growing trend in automotive ERP modernization: replacing legacy tools without interrupting production or sales. The migration prioritizes uninterrupted business continuity while enabling real-time data access, advanced analytics, and cross-functional integration.
According to Natuvion’s analysis of SAP S/4HANA migration in the automotive industry, migration to SAP S/4HANA or alternative platforms by the end of 2027 has become one of the primary drivers of transformation initiatives at automotive OEMs, as they respond to electrification, new mobility services, and software‑defined vehicle pressures.
Softtek leads the migration and licensing support, while SAP Argentina provides cloud infrastructure services. Together with Prestige Auto, they’ve established a joint governance model to minimize disruption and maintain compliance during the shift.
According to Fernanda Pérez, country manager at SAP Argentina, the transition “lays the foundation for continuous innovation, enabling more agile, secure, and efficient operations powered by AI, automation, and SAP’s integrated cloud ERP.”
A comparable approach can be seen at Toyota South Africa Motors, where SAP S/4HANA was delivered with IBM as the systems integrator, pairing implementation and managed services to modernize core operations while maintaining continuity.
From the Factory to the Customer: AI at the Heart of Sales Growth
For Prestige Auto, the opportunity extends well beyond IT modernization. SAP S/4HANA’s embedded intelligence enables predictive analytics and automation across functions – from vehicle production planning to dealer performance management – delivering the data to anticipate demand and accelerate response to customer needs.
This aligns with a broader global trend across SAP’s automotive customers, where ERP and customer data strategies are increasingly converging to support end-to-end, data-driven sales models.
An example of this is BMW Group KSA’s use of SAP Customer Data Platform (CDP) to unify first-party customer data with operational and ERP data into a single view, enabling AI-driven personalization and real-time engagement across channels.
This approach shifts automotive sales from fragmented interactions to data-led, one-to-one customer experiences. Overall, SAP is enabling a more connected, data-driven model for automotive sales and operations, bridging the front-office customer layer with the core operational backbone.
Analysis
What This Means for ERP Insiders
The takeaway for automotive ERP leaders is clear: your ERP roadmap now effectively sets the ceiling on future sales performance and customer experience. Those who treat ERP and customer data platforms as one unified, cloud‑based backbone – not a series of siloed IT projects – will be best positioned to scale AI, standardize processes globally, and turn operational data into differentiated customer journeys.
