Ideas to upgrade car?

The rotary encoders are important for measuring distance travelled and the relative speed of the two motors (they won't be exactly the same). To make the car go in a straight line, you need to use encoders to continuously monitor the motor speeds and adjust them to be equal.

To me, the most interesting project to build would be a line-follower robot. Some ir emitters & sensors to sense a white or black painted line or tape on the floor. Once you have the car following the track reliably, including sharp turns and intersections, you can lay out a maze, and have the car find its way through the maze without previously knowing the maze layout. Have you seen the "micromouse contest"? Search for it on YouTube. Amazing!