India is gearing up for a major leap in automotive technology as vehicles with 5G M2M connectivity and advanced AI features are set to hit the roads in 2025, according to the Techarc India Connected Consumer Report 2025. The report highlights that the country’s auto industry will bypass 4G and adopt 5G for seamless connectivity.
Consumers are increasingly prioritizing quality, features, and user experience over expanding their smart device portfolios, with 22% indicating a preference for optimizing their existing devices. The concept of smart or connected cars has generated strong interest, with 55% of respondents stating they have encountered news or updates about such vehicles recently.
Starting in 2025, passenger vehicles in India will feature 5G-enabled M2M connectivity, on-device generative AI, and cloud applications, making these cutting-edge technologies more accessible across price ranges. Cars priced at ₹20 lakh and above will include these capabilities as standard, enhancing real-time data processing for better driver assistance.
Leading semiconductor companies, including Qualcomm and MediaTek, have already achieved over $1.5 billion in cumulative revenue from automotive chipsets. Common in-car applications will include communication tools for audio and video calls, OTT streaming, music services, podcasts, online shopping, and vehicle servicing apps.
“Connectivity and the technologies it enables will redefine the future of the automobile sector, influencing comfort, safety, performance, and entertainment for drivers and passengers alike,” said Techarc AutoTech Analyst Sadat Ahanger. Features that were once considered luxury will become mainstream in India’s automotive market starting 2025.
The report also highlights the competitive landscape of connected cars in India, with MG Motors leading at 21% consumer preference, followed by Kia Motors (18%) and Tata Motors (15%). Hyundai and Maruti Suzuki complete the top five brands in the segment.
With 22 manufacturers producing nearly 5 million passenger cars annually, India is poised to emerge as a global leader in the 5G M2M automotive market in the coming years. The report’s insights are based on a survey of 4,500 connected consumers, defined as those owning at least three smart devices in addition to a smartphone, from metro and non-metro cities.
