How tech is transforming the Indian car market
- IBEF
- June 16, 2025
Technology is revolutionising the Indian automotive market, reshaping consumer preferences and competitive dynamics across both mass and luxury segments. Mainstream manufacturers like Honda and Mahindra are democratising advanced features. Honda’s new Amaze and Mahindra’s XUV700 now offer capabilities such as lane-keep assistance, adaptive cruise control, autonomous braking, 360-degree cameras, remote air conditioning, and mobile app integration—once reserved for cars priced above Rs. 50 lakh (US$ 58,078). These are now available in models starting from Rs. 9–12 lakh (US$ 10,454.04- 13,938.72), marking a significant shift in value perception.
Luxury automakers are also elevating standards. BMW’s i7 features an 8K ‘Theatre Screen.’ At the same time, Mercedes-Benz’s EQS sport utility vehicle (SUV) showcases a 56-inch ‘Hyperscreen’ and a generative artificial intelligence (AI)-based operating system that learns driver habits. Both brands now offer connected car platforms, enabling real-time data sharing for road safety and autonomous driving alongside over-the-air software updates. Consumers increasingly prioritise such tech—whether for conveniences like wireless Apple CarPlay, or brand appeal, as Mahindra’s tech-led approach is now seen as premium. Experts say technology has moved from being a differentiator to a necessity. Buyers are swayed by visible, experiential tech rather than mechanical specs, and future market leadership will depend on how practically useful and integrated these features are into the driving experience.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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