The global automotive industry is undergoing rapid digital transformation driven by artificial intelligence (AI), the Internet of Things (IoT), big data analytics, and sustainability demands. While developed markets have advanced significantly, South Africa’s automotive industry faces structural and institutional barriers that limit progress. This review examines the opportunities and constraints of digital business model adoption in South Africa, with reference to global and emerging economy experiences. A systematic literature review was conducted between July and August 2025, drawing on academic databases and industry reports; 26 core studies were thematically analysed. Results indicate that the South African sector remains in the early stages of digitalisation, hindered by infrastructural deficits, skills shortages, regulatory gaps, and fragmented stakeholder engagement. Nevertheless, opportunities exist in mobility-as-a-service (MaaS), predictive maintenance, connected vehicles, and digital platforms for customer engagement. The study concludes that digital transformation offers a pathway to competitiveness, sustainability, and resilience, and recommends targeted infrastructure investment, digital skills development, policy alignment, and further empirical research to support adoption in South Africa.