Smart Car Sector Making Buzz in the Indian Consumers Market In India 73% of consumers consider smart features crucial when buying a car
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The Indian consumer market is rapidly embracing artificial intelligence (AI) and connected technologies across various domains, including smart home infrastructure, security, and convenience. From video-enabled doorbells to smart air purifiers, the integration of AI has fueled the demand for smart devices. Among these, the smart car segment has emerged as a buzzing sector. According to the techarc's India Connected Consumer report, 55 per cent of respondents have heard about smart cars recently, indicating growing interest and awareness.
According to the report, India's automotive industry is set to bypass 4G connectivity and leap directly to 5G technology, positioning itself as the largest 5G Machine-to-Machine (M2M) market globally within two to three years. With 22 automobile original equipment manufacturers (OEMs) already producing 5 million passenger vehicles annually, the industry is buzzing with potential. Companies like Reliance Jio Platforms are focusing on indigenous tech stacks to enable locally manufactured, ready-to-deploy technologies.
"Connected cars are increasingly being seen as a platform with tremendous opportunity to collaborate for bringing greater value to consumers. At the same time, it gives an immense opportunity to sharply localise meeting diverse needs and requirements of consumers in India," said Mohan Raju, vice president, Jio Platforms.
A Global and Local Perspective
Globally, the chipset industry sees the automotive market as a significant growth area, with companies like Qualcomm and MediaTek already generating billions in revenue. In India, despite challenges like inventory build-up and upfront costs, original equipment manufacturers (OEMs) continue to prioritize smart features. In India 73 per cent of consumers consider smart features crucial when buying a car. Meanwhile, 61 per cent cite high costs as a barrier to ownership. Nevertheless, MG and Kia dominate the smart car market in India, with mass-to-mid premium cars.
Industry leaders are committed to advancing India's smart car ecosystem. Anku Jain, managing director of MediaTek India shares: "India is one of the world's leading automotive growth hubs. Technologies like ADAS, Generative AI-powered cabins, and cloud computing are transforming automotive solutions. With our MediaTek Dimensity Auto Portfolio, we focus on delivering immersive, advanced in-vehicle user experiences with cybersecurity capabilities and enhanced connectivity."
Similarly, Uday Dodla, sr. director at Qualcomm India, highlights the shift toward software-defined vehicles (SDVs): "In the era of SDVs, we are empowering automakers to redefine electronics architecture and introduce highly personalized, GenAI-powered features on our platforms."
