According to a report by Techarc, India would enter a transformative smartphone era for cars in 2025, with the introduction of vehicles featuring 5G machine-to-machine (M2M) connectivity and advanced artificial intelligence (AI) technologies.

The report mentioned that the automotive sector will skip 4G and will enable connectivity using the latest 5G cellular technology. It observed that consumers are interested in spending money on improving the value proposition in terms of features, quality and experience rather than exploring too many smart devices.

As per the report, starting in 2025, passenger cars in India will be equipped with 5G M2M connectivity, on-device generative AI (GenAI), and cloud connectivity, making advanced technologies accessible across various price segments. Meanwhile, in-vehicle computing and GenAI, along with cloud applications, will become essential components of cars, enabling real-time data processing to support drivers effectively.

The report further highlighted that most cars priced at Rs two million and above will feature these technologies as standard. The cumulative revenues from automotive chipset companies have already surpassed $ 1.5 billion. Furthermore, some of the familiar applications that consumers will be able to use while driving include communication apps for audio/video conferencing, over-the-top (OTT) entertainment apps, music streaming, podcasts, online shopping, vehicle maintenance, and servicing.

The report noted that with 22 automobile manufacturers producing nearly five million passenger vehicles annually in India, the country is poised to become a leader in the global 5G M2M market within the next few years.

The report also mentioned that about 21 per cent respondents said MG Motors is the leader in providing connected cars in India, followed closely by Kia Motors at 18 per cent and Tata Motors at 15 per cent. Moreover, Hyundai and Maruti Suzuki also ranked among the top-five brands in this category.

The report draws insights from a survey of 4,500 connected consumers across metro and non-metro cities. The report defined a connected consumer as one owning at least three smart devices in addition to a smartphone.