Cars have now become a part of the connected ecosystem and have evolved beyond just being a means of transportation. Automotive manufacturers are now leveraging next generation technologies to allow cars to stay connected with individuals, devices and other cars. A recent report by Telephonica reveals 71% of drivers are interested in using or are already using connected car services. The paper provides insights into the six main focus areas for a connected car, delves into the engineering and business model challenges and how they can be addressed to develop an optimal solution.