Background Given the physical nature of the product, the automotive industry remains as one of the few industries yet to be digitized. And the transformation is happening mostly through the innovation of the Business Model. The industry is seeing a threat of new entrants from outside of the traditional automotive industry. Moreover, established players are considering new business models to serve the changing market. This is where the balance of exploiting current business models and exploring new ones comes into play.

Purpose The purpose of our study is to present a framework showing how an ambidextrous approach helps in the challenge of innovating a business model or introduce new business models in the automotive industry. Moreover, we will provide insights into the challenges the business model innovation provides to this industry and propose potential implications for managers. The research will be based on the theory of business model innovation, ambidextrous organizations, and ambidexterity in business models.

Method To achieve the purpose of the study, semi-structured interviews were conducted, followed by a grounded analysis. For this study, a literature review was used that generated a theoretical framework.

Conclusion Our results and analysis of the interviews are presented in a framework that is based on three identified concepts: Customer and Market, Structures within the Organization, and Ability to Innovate. These three are interrelated in our framework and help us answer the initial research question proposed.