The automotive industry has undergone significant transformation in recent years, and digitalization has played a key role in shaping the automotive revolution. The impact of digitalization on the automotive industry has transformed manufacturing, design, marketing, customer relations and the supply chain. The integration of digital technologies into the car production process and the cars themselves has fundamentally changed the business of car companies. Automation, robotics and data analytics have streamlined production, leading to improved efficiency, reduced costs and improved quality control. The Internet of Things and big data analytics played a key role in business transformation. Online platforms, social media and data-driven marketing campaigns have expanded the range of manufacturers and provided them with valuable insight into consumer preferences. Personalization and targeted advertising have become the norm, influencing purchasing decisions and creating increasingly loyal customer bases. The paper explains in detail the technologies that enabled the revolution in the automotive industry, including the development of artificial intelligence and autonomous vehicles, as well as the problems and threats that came with the implementation of new technologies in cars, such as the lack of privacy and potential hacker attacks. In the case study, it was researched in detail how BMW AG went through business transformation since the establishment of the company. SWOT and PESTLE analyzes were carried out, Porter's 5 forces model was presented on the example of the BMW company and a comparison was made with the biggest competitors within the German borders. BMW is one of the leading companies when it comes to investing in innovative technologies and implementing them in its production and cars. Furthermore, the paper researched which digital innovations come from the Bavarian giant, how BMW has successfully implemented a service business model and what the company's further growth and development strategy is.