A variety of new features have been added in the present-day vehicles like a pre-crash warning, the vehicle to vehicle communication, semi-autonomous driving systems, telematics, drive by wire. They demand very high bandwidth from in-vehicle networks. Various electronic control units present inside the automotive transmit useful information via automotive multiplexing. Automotive multiplexing allows sharing information among various intelligent modules inside an automotive electronic system. Optimum functionality is achieved by transmitting this data in real time. The high bandwidth and high-speed requirement can be achieved either by using multiple buses or by implementing higher bandwidth. But, by doing so the cost of the network and the complexity of the wiring in the vehicle increases. Another option is to implement higher layer protocol which can reduce the amount of data transferred by using data reduction (DR) techniques, thus reducing the bandwidth usage. The implementation cost is minimal as only the changes are required in the software and not in hardware. In our work, we present a new data reduction algorithm termed as “Comprehensive Data Reduction (CDR)” algorithm. The proposed algorithm is used for minimization of the bus utilization of CAN bus for a future vehicle. The reduction in the busload was efficiently made by compressing the parameters; thus, more number of messages and lower priority messages can be efficiently sent on the CAN bus. The proposed work also presents a performance analysis of proposed algorithm with the boundary of fifteen compression algorithm, and Compression area selection algorithms (Existing Data Reduction Algorithm). The results of the analysis show that proposed CDR algorithm provides better data reduction compared to earlier proposed algorithms. The promising results were obtained in terms of reduction in bus utilization, compression efficiency, and percent peak load of CAN bus. This Reduction in the bus utilization permits to utilize a larger number of network nodes (ECU’s) in the existing system without increasing the overall cost of the system. The proposed algorithm has been developed for automotive environment, but it can also be utilized in any applications where extensive information transmission among various control units is carried out via a multiplexing bus.