India’s automotive sector is set to embrace 5G M2M connectivity and AI-based technologies in 2025, transforming cars into smart devices. Techarc’s India Connected Consumer Report 2025 highlights growing consumer interest in connected cars, signaling a major shift in the automobile industry.

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India is poised for a groundbreaking shift in its automotive sector as 5G M2M connectivity and advanced AI technologies debut in passenger cars starting in 2025, according to Techarc’s India Connected Consumer Report 2025. The report predicts that the automotive sector will bypass 4G, opting directly for 5G cellular technology to enable seamless connectivity.

Consumer interest in connected cars is on the rise, with the report stating, “22 per cent of the respondents shared about considering optimising their smart devices portfolio. Among the new set of categories, smart/connected cars is generating high interest among consumers. 55 per cent of the respondents said that they have come across news or information about smart/connected cars in recent times.”

Starting in 2025, cars will feature 5G M2M connectivity, GenAI for real-time data processing, and cloud applications, making these technologies accessible across various price segments. Most vehicles priced at ₹20 lakh and above will include these features as standard. Companies like Qualcomm and MediaTek are driving this trend, with cumulative revenues from automotive chipsets surpassing US$ 1.5 billion.

Familiar in-car applications will include OTT streaming, communication tools, podcasts, and vehicle maintenance services. Techarc’s Sadat Ahanger noted, “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.”

India, producing 5 million passenger vehicles annually, is expected to lead the global 5G M2M market. MG Motors, Kia Motors, and Tata Motors are identified as leading brands in the connected car segment, with Hyundai and Maruti Suzuki also ranking highly.