India’s automotive industry is on the cusp of a significant transformation as it embraces the “smartphone era” in 2025. According to the Techarc India Connected Consumer Report 2025, the country is set to leapfrog directly into 5G-enabled smart vehicles, bypassing the 4G phase altogether. This shift is poised to redefine the driving experience, making advanced technologies accessible across various price segments.
The report highlights that starting in 2025, passenger cars in India will be equipped with 5G Machine-to-Machine (M2M) connectivity, on-device Generative AI (GenAI), and cloud integration. These features will enable real-time data processing, enhancing navigation, safety, and infotainment systems. The integration of such technologies is expected to make previously luxurious features standard in upcoming vehicles.
Consumer interest in smart and connected cars is on the rise. The report notes that 55% of respondents have recently come across information about smart/connected cars, indicating a growing awareness and curiosity. Additionally, 22% of consumers are considering optimizing their smart device portfolios, suggesting a readiness to invest in enhanced automotive experiences.
This technological advancement is anticipated to position India as a potential global leader in the 5G M2M market. Major automotive manufacturers are already incorporating advanced technologies, signaling a broader industry trend towards innovation and digital integration.
The move towards smart vehicles aligns with India’s broader digital transformation goals, reflecting a commitment to integrating cutting-edge technology across various sectors. As the automotive industry evolves, consumers can expect a more connected, efficient, and intelligent driving experience in the near future.