Artificial Intelligence (AI) is radically transforming the automotive industry, particularly in the domain of passenger vehicles where personalization, safety, diagnostics, and efficiency. This paper presents an exploration of AI/ML applications through quadrant of the key pillars: Customer Experience (CX), Vehicle Diagnostics, Lifecycle Management, and Connected Technologies. Through detailed use cases, including AI-powered active suspension systems, intelligent fault code prioritization, and eco-routing strategies, we demonstrate how AI models such as machine learning, deep learning, and computer vision are reshaping both the user experience and engineering workflow of modern electric vehicles (EVs). This paper combines simulations, pseudo-algorithms and data-centric examples of the combined depth of functionality and deployment readiness of these technologies. In addition to technical effectiveness, the paper also discusses the challenges at field level in adopting AI at scale i.e., data scarcity, regulatory, sensory fusion reliability, and user trust. The set of recommendations on safe, modular, and scalable integration roadmap, including the importance of continual learning, hybrid digital twins, and legacy-system interoperability, is provided. By offering a comprehensive yet application-driven perspective, this work serves as both a technical reference and strategic blueprint for stakeholders aiming to embed intelligent systems across the vehicle lifecycle, from predictive diagnostics to real-time adaptive user interfaces.