By Raghavendra Vaidya, MD & CEO, Daimler Truck Innovation Centre India (DTICI)
As we move towards 2025, the automotive industry is set for a transformative leap, driven by innovation, sustainability, and advanced technology. In 2024, the sector has already made significant strides, with AI, connected software, and electric vehicles (EVs) redefining the driving experience. The momentum is set to continue. Daimler Truck Innovation Centre India (DTICI) identifies key trends for the coming year, focusing on smarter, greener, and safer solutions that will redefine industry’s future.
AI and advanced software: Backbone of tomorrow’s vehicles
At the core of this transformation are AI and advanced software, which are fast becoming the digital backbone of tomorrow’s vehicles. These technologies are enhancing vehicle intelligence, making cars safer, more efficient, and adaptable to future challenges. AI-driven predictive maintenance reduces downtime, while advanced analytics optimise everything from route planning to fuel efficiency. The rapid evolution of connected vehicle technology offers an integrated suite of safety features, infotainment options, and adaptive systems that work seamlessly to improve the driving experience. Over-the-air software updates will ensure that vehicles remain agile, receiving continuous enhancements without the need for a service visit, marking the emergence of a new era in software-driven automotive innovation.
Electric vehicles taking the lead
The shift towards electric vehicles (EVs) is gaining significant momentum, with government policies, expanding charging infrastructure, and growing consumer demand fuelling this transition. EVs have now moved beyond the niche market to become mainstream. India is expected to emerge as the third-largest EV market by 2025, with 2.5 million EVs on the road, highlighting India’s commitment to a sustainable, electric future. Innovations in battery technology—such as faster charging times, extended range, and enhanced durability—will make EVs more practical and accessible for everyday use. Additionally, the growth of local production for critical EV components, like batteries and motors, will enhance India’s self-sufficiency in the global EV ecosystem.
Stepping up to meet India’s net-zero goal with decarbonisation
By 2025, India’s automotive industry will significantly advance its decarbonisation efforts, supporting the nation’s 2070 net-zero emissions goal. Key strategies will include significant investments in alternative fuels such as hydrogen, biofuels, and renewable energy, along with innovations in fuel cell technology, lightweight materials, and aerodynamics to meet strict emission standards while ensuring high performance. The sector will also integrate renewable energy into manufacturing and prioritise sustainable supply chains, aligning with both regulatory requirements and rising consumer demand for eco-friendly solutions, driving the industry toward a more sustainable future.
Collaborate and co-create innovation through strategic alliances
Collaboration across industries is set to be a major force driving India’s automotive evolution, with strategic partnerships accelerating advancements in EV infrastructure, autonomous driving, and next-generation mobility solutions. A significant emerging trend is the willingness of leading automotive companies to advance the development of cutting-edge software platforms, enhance vehicle connectivity, and build an integrated digital ecosystem. Such alliances are fuelling research and development, strengthening supply chain resilience, and enabling quicker product rollouts.