New Delhi: India is set to enter a transformative “smartphone era” for automobiles by 2025 with the launch of vehicles with 5G M2M connectivity and advanced AI technologies, according to the latest findings in Techarc’s India Connected Consumer Report 2025. The automotive industry will bypass 4G and enable connectivity using the latest 5G cellular technology, the report said.

It has been observed that consumers are more interested in spending money on improving the value proposition in terms of features, quality and experience rather than exploring too many smart devices.

“22 percent of survey respondents shared that they are considering optimizing their smart device portfolio. Among new categories, smart/connected cars are gaining a lot of attention among consumers. 55 percent of survey respondents said they have come across news or information on this topic. Smart/connected cars have emerged recently ” he said.

It was stated that from 2025, passenger cars in India will be equipped with 5G M2M connectivity, on-device GenAI and cloud connectivity, thus making advanced technologies accessible across various price segments.

In-vehicle computing and artificial intelligence (GenAI), along with cloud applications, will become key components of automobiles, enabling real-time data processing to support drivers effectively.

Most cars priced at Rs 20 lakh and above will feature these technologies as standard. Cumulative revenues of automotive chipset companies have already exceeded $1.5 billion, and companies such as Qualcomm and MediaTek are leading the market.

Some of the familiar apps consumers can use while driving include communications apps for audio/video conferencing, OTT entertainment apps, music streaming, podcasts, online shopping, vehicle maintenance and service.

“The future of the automobile industry, with its connectivity and the technologies it brings to automobiles, will be fundamentally determined by automotive technologies that will impact the overall experience, performance, comfort, safety and entertainment offered to drivers as well as passengers.

“Until now, such features were seen as luxury or high-end experiences. But from 2025, most of these will become mainstream for cars in India,” said Sadat Ahanger, AutoTech Analyst at Techarc.

The report stated that India, where 22 automakers produce around 5 million passenger vehicles annually, is poised to become a leader in the global 5G M2M market in the next few years.

Nearly 21 percent of respondents said MG Motors is a leader in providing service Connected cars in IndiaThis is followed by Kia Motors with 18 percent and Tata Motors with 15 percent.

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

The report includes insights from a survey of 4,500 “connected consumers” in metro and non-metro cities. In the report, an internet-connected consumer is defined as a consumer who owns at least 3 smart devices in addition to a smartphone.