India’s automobiles will enter the “smartphone era” in 2025, adopting 5G and advanced AI

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India's automobiles will enter the
India's automobiles will enter the "smartphone era" in 2025, adopting 5G and advanced AI

The latest findings from Techarc’s India Connected Consumer Report 2025 indicate that India is poised to embrace a revolutionary “smartphone era” for cars in 2025 as vehicles with powerful AI capabilities and 5G M2M connectivity are introduced. The car industry will use the newest 5G cellular technology to offer connectivity instead of 4G, according to the research.

Instead of trying out too many smart gadgets, it was found that customers would rather spend money on enhancing the value offer in terms of features, quality, and experience.

“22% of the respondents shared about considering optimizing their smart device portfolio. Among the new set of categories, smart/connected cars are generating high interest among consumers. 55% of the respondents said that they have come across news or information about smart/connected cars in recent times,” it said.

According to the statement, advanced technologies will be available across a range of price points in India starting in 2025 when passenger cars are outfitted with 5G M2M connectivity, on-device GenAI, and cloud connectivity.

Cloud apps, in-vehicle computing, and artificial intelligence (GenAI) will become indispensable parts of automobiles, allowing for real-time data processing to efficiently assist drivers.

These systems are standard on the majority of cars priced at Rs 20 lakh and more. Companies like Qualcomm and MediaTek are at the top of the automotive chipset market, with combined revenues already exceeding USD 1.5 billion.

OTT entertainment apps, music streaming, podcasts, online shopping, audio/video conferencing communication apps, and car maintenance and repair are just a few of the well-known apps that users will be able to use while driving.

“With connectivity and the technologies it brings to the cars, the future of the automobile sector will be fundamentally determined by the auto-technologies that will influence the overall experience, performance, comfort, safety, and entertainment available to the drivers as well as the passengers.”

“So far, such features were seen as luxury or high-end experiences. But starting 2025, many of these will become mainstream for cars in India,” Techarc AutoTech Analyst Sadat Ahanger said.

India is positioned to take the lead in the global 5G M2M market in the next few years, according to the report, as 22 automakers produce around 5 million passenger cars there each year.

According to about 21% of respondents, MG Motors leads the Indian market for linked automobiles, closely followed by Tata Motors at 15% and Kia Motors at 18%.

In this category, Hyundai and Maruti Suzuki were also in the top five brands.

A study of 4,500 “connected consumers” in both urban and non-metropolitan areas provided the information used in the research. According to the research, a connected customer is a person who owns a smartphone and at least three other smart gadgets.

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