Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canada’s leading LEV distributor. Daymak will assemble Avvenire’s vehicles and distribute them through its network of over 200 dealers in 25 countries. Further, as part of larger decarbonization efforts, the Intergovernmental Panel on Climate Change (IPCC) emphasizes the contribution of EVs to the reduction of greenhouse gas emissions.

• Almost 40% of all autonomous vehicles sold in 2025 are predicted to have L2 ADAS features.
• Also, applications extend from adaptive cruise control, lane-keeping, and traffic jam assistance to robotaxis and driverless trucking.
• The platform LM Mission ControlTM offers free-floating or station-based car sharing, advanced shuttle services, shared dockless scooters, keyless rental programs, and peer-to-peer shared mobility.
• Battery improvements reduce costs and increase range, making EVs more accessible.
• This centralization allows faster product cycles, OTA updates, and cross-domain features.
• On the other side of the globe, in Asia, China has implemented a landmark energy policy, aptly named the ‘Energy Law’, as of January 2025.

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Also, EV charging infrastructure requires strong cybersecurity, as attackers target charging stations for data theft or service disruption. The startup also operates PartSmart, a real-time parts ordering platform that connects insurers, workshops, fleet owners, and suppliers. The platform enables visibility across the entire claims cycle and supports both OEM and aftermarket sourcing.

Bentley Supersports Vows to Be a Pure Driver’s Car

It incorporates an intuitive infotainment system for efficient power management while minimizing driver distractions. The control system includes safeguards like automatic overheating prevention, battery depletion protection, and real-time torque and speed calibration for optimal performance on challenging terrains. The Asia-Pacific region currently controls the majority of the market due to the strong uptake of electric cars (EVs) in countries like China, India, and Japan.

• Vehicle cybersecurity drives one of the fastest-growing areas in the auto industry as connected vehicles multiply and cyber risks intensify.
• Let’s consider the recent trends in automobile industry related to the application of latest technologies.
• Despite initial scepticism, the automotive industry is embracing enhanced connectivity by enabling real-time updates and post-production feature additions.
• Also, GPS and V2X connectivity improve fleet distribution and service reliability.
• Internet of Things (IoT) and real-time monitoring solutions improve shipment tracking, warehouse oversight, and production visibility.
• This includes aligning new technologies and business models with the company’s vision.

Autonomous Vehicles are Changing the Face of the Auto Industry

However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040. Virtual car shopping is the new norm and will remain a significant car industry trend for years. The booming e-commerce industry is essential to the global online car buying demand. This is further fueled by increasing awareness of convenience and supported by rising digital literacy, internet accessibility, urbanization, and disposable income levels.

• In the future, advanced integrated solutions will dominate, leading to lighter and more efficient electric powertrains and driving the next generation of high-performance and mass-market EVs.
• People are shifting to EVs because of their design and their being environmentally friendly.
• In this article, we’ll explore the significant focuses of the automotive industry in 2025, ranging from electric mobility to autonomous driving and sustainability initiatives.
• Automakers move from fleets of electronic control units (ECUs) toward centralized computing platforms that run multiple domains on Systems on Chip (SoCs).
• Monitoring and understanding these trends is crucial for automakers, suppliers, and other stakeholders to stay competitive.

a. Carbon Neutrality Goals

The global automotive industry, responsible for 10% of the world’s carbon dioxide emissions, faces ongoing pressure to overhaul its practices. However, the landscape is proving difficult to steady with an intricate maze of regulations that differ combining IoT sensors and VIN databases by country or region and lack a unified benchmarking process for sustainability. The SAE, originally the Society of Automotive Engineers, has identified six levels of automation on the path to completely autonomous vehicles.

Tangram Vision offers a Perception Platform

These advancements are driving the future of connected vehicles, which are increasingly becoming a standard feature in new cars. Modern vehicles are now equipped with a unique digital identity, making it easier to track and share data for applications like insurance, driver safety, predictive maintenance, and fleet management. Nigerian startup Revive Earth develops the Revive Kit, to convert petrol vehicles into efficient EVs.

🇨🇳 Increasing Competitiveness and Influence of Chinese Automakers

• They further assist with management, maintenance, and repair appointments, as well as streamlining operations.
• Also, the EV market is projected to reach USD 6.16 trillion by 2035 at a CAGR of 25.32%.
• Declining battery costs move EVs closer to price parity with combustion vehicles.
• Initiatives and support from the Chinese government, such as pilot zones and regulatory frameworks, are further accelerating the process.
• In 2023, the global connected car market was valued at $80.87 billion and projecting remarkable growth.
• Gain in-depth insights into the key developments that characterise the automotive industry.
• Electrification and autonomous vehicles will remain megatrends, transforming the sector and forcing automakers, suppliers, and dealers to adapt to new technologies and business methods.
• Technological advancements, changes in consumer preferences, regulatory changes, and global economic conditions drive these trends.

With the new administration of Donald Trump in January, the trade war with China will have a major impact on the automotive industry in 2025. Displays will also be a key driver of automotive technologies in 2025, from microLEDs to the production of holographic windscreens and smart glass. Belgian startup Apache Automotive develops the APH-01, a T3 prototype for extreme terrain. It combines a gasoline engine with an electric motor to enhance fuel efficiency and reduce emissions.

Discover all Automotive Trends, Technologies & Startups

This also presents an emerging opportunity to connect the vehicle ecosystem, creating a dynamic adaptation of data for road and weather conditions, assisted by IoT-enabled devices. Car companies plan to integrate powertrain components in the next five to ten years by combining onboard chargers with batteries. Tesla already employs single inverter housings across its models, offering efficient integration of power electronics. This shift is driven by the growing need for more efficient power management in electric vehicles, resulting in smarter and more streamlined EV designs. 2025 will witness the automotive industry transitioning from Level 2 autonomy to Levels 2.5 and 3, representing a substantial evolution in automotive technology and enhancing vehicle automation and safety. Almost 40% of all autonomous vehicles sold in 2025 are predicted to have L2 ADAS features.

Lexus LS Coupe Concept Could Be the Future of… Something

German OEMs already have a full roadmap from L2 to L3, with Mercedes Benz commercializing their DrivePilot system, and BMW is likely to follow soon. Emerging companies are developing advanced sensing technologies to collect extensive vehicle data and enable vehicles to better understand their surroundings. Blockchain technology is increasingly being utilized in the automotive industry for various applications. It enables secure data sharing for connected and shared mobility solutions, including ride-hailing, urban transportation, and delivery services.

is set to be a big year for automotive production

Dealerships can take advantage of various videos, such as how-to videos, car highlights, and customer testimonials. The demand is highest for vehicles under four years old, which have the latest technologies but are less expensive than new cars. This includes pre-owned electric and hybrid vehicles, and dealerships now offer certified pre-owned cars that look and function like new ones at a lower cost. As we look forward to 2025, RSM’s automotive professionals predict a slowdown overall in the growth of the industry as well as a reduction in overall margins and profitability. Many OEM’s are already revisiting original forecasts and realigning through-put and production schedules accordingly. Automotive suppliers are renegotiating their vendor/supplier contracts to align with these new predictions.

Nearshoring is becoming increasingly prevalent, particularly in North America, where manufacturers are shifting operations closer to key markets to mitigate supply chain risks and reduce logistical costs. In the UK, auto production surpassed one million units in 2023, marking a significant recovery. However, with the cessation of certain models, there are concerns about a potential production dip in 2024. New EV launches slated for 2025 are expected to reinvigorate the market, underscoring the importance of product innovation in sustaining growth. Artificial Intelligence and Smart Factory technologies are no longer aspirational but integral to modern automotive manufacturing. Stellantis, for instance, has demonstrated how AI can transform production efficiency.

Many of these vehicles will feature over-the-air (OTA) upgrades and V2X communication. Xaba’s proprietary process and AI-driven large-scale 3D printer enable sustainable materials, such as fibers, fiber-reinforced polymers, and metals, to create functional car chassis. The adoption of augmented reality (AR) in head-up displays and automated parking systems is expanding, which is advancing ADAS technologies.

Regenerative braking systems, crucial in EVs and hybrid cars (HEVs and PHEVs), contribute to energy recovery rates of 5% to 20%, depending on driving conditions. The platform includes geofencing, driver behavior monitoring, route mapping, and integrated or standalone camera options, accessible via a dashboard and mobile app. For asset tracking, the startup provides small, discrete devices with long-life batteries lasting up to five years, waterproof ratings, and location monitoring alerts for reliability in outdoor conditions. XCognition captures operator input or sensor data to generate execution-ready robotic programs to increase accuracy and reduce deployment time. XTrude models the physics of FDM processes to optimize parameters like flow rate and extrusion temperature to ensure large-scale 3D printing.

• General Intelligence strengthens the evolution of software-defined vehicles by aligning human-inspired learning with safety.
• Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions.
• Tesla already employs single inverter housings across its models, offering efficient integration of power electronics.
• The World Health Organization links 1.35 million annual deaths to road accidents, creating urgency for autonomy.
• As a result of this partnership, Ford is expected to launch its own self-driving car business.
• However, regulatory hurdles and the complexity of navigating diverse driving environments remain significant barriers.
• However, as per the new Agency model, we will get to see that the people would directly be dealing with the OEMs and the dealer’s profit would be shared by OEMs.

Qumasoft’s solution enables companies to develop, produce, and operate cybersecure vehicles and components efficiently. This reduces development costs and time while enhancing quality and analytical capabilities. Further, the Asia-Pacific region is anticipated to witness rapid growth, with a projected CAGR of 18.3%, driven by rising vehicle sales and evolving safety regulations. These vehicles reduce emissions and feature innovative designs for modern commuters. Avvenire focuses on sustainable mobility to contribute to a cleaner environment and meet the demand for green transportation.

Other Technology Trends in Automotive Industry

Looking ahead, Tesla’s strategies are likely to influence industry standards and inspire localisation efforts across the sector. With its focus on next-generation cells and expanded production capacity, Tesla is paving the way for a more efficient and sustainable global EV landscape. The next wave of auto trends is shaped by enabling technologies that extend beyond electrification and connectivity.

It enhances safety via driver-assist features and promises to revolutionize mobility with robotaxis and freight automation. Its progress influences OEM investments, partnerships with tech firms, and consumer expectations. While full autonomy is still years away, incremental advances are reshaping vehicle capabilities and market offerings today. These material innovations are also crucial to meeting evolving regulations, particularly the EU’s stringent emission standards. For EVs specifically, weight reduction translates directly into extended range and improved battery performance.

With EV makers in China engaging in a price war due to declining demand, Chinese brands with strong hybrid presently are gaining popularity. A few hybrid models are priced below their EV and ICE counterparts, attracting Chinese consumers to hybrids, especially plug-in hybrid (PHEV) and extended-range hybrid (EREV) models. Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs. These gateways, combined with advanced transducers, facilitate real-time data collection. The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals high startup activity in the US, Europe, and India.

In 2025, electrification and software integration will have an essential impact on the automotive industry. These tendencies are long-term and are expected to continue shaping the auto industry in the near future. In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025. Environmental concerns and technological innovations are advancing faster than many anticipated. From electrification to IoT connectivity, these shifts are changing the way cars are manufactured, sold, repaired, and driven. Shared micromobility vehicles are becoming a popular mode of transportation in cities where the pollution from cars and traffic congestion is particularly evident.