India’s new favorite smart device in 2025: 5G-AI connected cars

Details: John Tanner; Category: Devices & Platforms; 19 November 2024; 7291 views

5G connected cars are expected to be an increasingly hot item for India’s smart-device consumers next year as new models include 5G IoT connectivity and onboard GenAI as default technologies, says a new research report.

According to Techarc's India Connected Consumer Report 2025, Indian consumers are still buying smart devices such as smart home appliances and smart speakers, but they aren’t using them much. On average 27% of respondents have stopped or reduced using at least one of the smart devices they own, usually due to poor user experience or perceived lack of value for money.

The study found that consumers are interested in spending money on devices that offer a better value proposition in terms of features, quality and experience, and one category currently generating the most interest is connected cars.

Around 55% of respondents said that they have come across news or information about smart/connected cars in recent times, while 73% said that smart/connecvity features will be either an “extremely important” or “important influence on their next car purchase, the report said.

According to Techarc, all of the 22 automobile OEMs in India have centred their core strategies around connected cars. Starting next year, passenger cars launched in India will offer 5G IoT connectivity, onboard GenAI, cloud connectivity and multiple displays across different price segments. Most cars priced INR2 million (around US$23,700) and above will feature 5G connectivity and GenAI by default.

Techarc expects telematics, vehicle maintenance, audio/video conferencing and infotainment apps to be the big early use cases for connected cars in India.

“With connectivity and the technologies it brings to the cars, the future of 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,” said Techarc auto-tech sector analyst Sadat Ahanger. “So far, such features were seen as luxury or high-end experiences. But starting 2025, many of these will become mainstream for cars in India.”

The Techarc report also said India’s connected car segment could turn the country into the largest 5G IoT market in the world in next two to three years, as the local automotive sector is leapfrogging 4G in favor of 5G, which is available in most populated areas across the country.

The report is promising news for telcos looking for new 5G monetisation opportunies, including connected cars. Last month, Bharti Airtel's B2B arm Airtel Business launched a partnership with automaker Kia India to provide IoT connectivity solutions for its next-gen connected-car platform, Kia Connect 2.0.