Technology has taken over the automobile industry. As cars shift from sedans to SUVs and from traditional engines to electric and hybrid options, cutting-edge tech is driving this change. It is no wonder, therefore, that the notion of connected cars has now become a hot topic, leading the way in this new era of smart driving. But what is a connected car? To begin with, connected cars are vehicles that come equipped with internet connectivity and various digital technologies that enable communication between the car, its internal systems, external devices, and cloud services. These vehicles can send and receive data, offering a wide range of features aimed at enhancing safety, convenience, efficiency, and entertainment for drivers and passengers.
So prevalent has this become now that according to a report by consulting firm McKinsey, by 2030, 95% of new vehicles sold globally will be connected. This is especially significant for domestic automobile manufacturers as they race to cater to consumer demand.
Over the years
In 1996, General Motors’ launch of the GM OnStar in Cadillac marked the automotive industry’s first big step toward connected cars, blending cutting-edge tech with vehicles. Luxury brands like BMW, Mercedes, and Audi quickly followed, and by the late 2010s, smartphones and mobile internet brought even more advanced connected car systems into play.
Today, software-as-a-service (SaaS) has come a long way. With Generative Artificial Intelligence (Gen AI) and the Internet of Things (IoT), connected cars now offer more than just real-time navigation and infotainment. They include vehicle-to-everything (V2X) communication and advanced driver-assistance systems (ADAS), like adaptive cruise control, lane-keeping assist, and automatic emergency braking. These features use sensors and cameras to boost safety and prevent accidents.
Connectivity in a vehicle offers multiple levels of confidence. “It provides security through safety features, utility through payment options, and entertainment, including access to the Play Store. This comprehensive stack helps integrate connectivity into the mainstream of a consumer’s life,” says Gaurav Gupta, Deputy Managing Director of JSW MG Motors India.
According to a report by the revenue impact and advisory company, Markets and Markets, the domestic connected car market is expected to grow at a CAGR of 22.2%, from $9.8 billion in 2019 to reach $32.5 billion by 2025.
Coming to India
In 2015, after Honda Cars India introduced its flagship connected car feature, Honda Connect, several automakers began integrating technology into the domestic automotive space. In 2019, South Korean automaker Hyundai introduced its connected car technology, Bluelink, in the flagship sedan, Verna. The same year, JSW MG Motors India (formerly known as MG Motors India), identifying itself as an auto-technology brand, introduced the MG i-Smart technology in the MG Hector.
According to Gupta, introducing this feature was a game changer for the company. “That was when many consumers and the auto industry got a taste of a car with an embedded SIM, providing numerous features in the connected space,” he notes.
According to many experts, connected cars as a concept is something Indian automakers have been quite excited about. In fact, over the years, several carmakers have taken significant strides in integrating connected car technology.
Moreover, as the market has grown, the features present in a connected car have grown too. Tata Motors’ connected car platform, iRA, for instance, provides features such as remote vehicle control, real-time tracking, and vehicle health monitoring.
“As we move forward, the penetration of connected cars will continue to grow, alongside advancements in autonomous driving and active safety features,” says Shailesh Chandra, MD of Tata Motors Passenger Vehicle and Tata Passenger Electric Mobility Ltd.
Meanwhile, Maruti Suzuki’s Suzuki Connect platform offers vehicle health monitoring, location tracking, and emergency assistance. Mahindra’s connected car technology includes remote diagnostics, tracking, and integrated infotainment options.
But if most of the top automakers are now offering connected cars to the discerning consumers, how do the companies stack up vis-à-vis each other? As per Jato Dynamics, in the connected cars segment, Maruti Suzuki is the leader, with a share of 22.42%, followed by Hyundai (16.2%), Toyota (13.62%), Mahindra (12.66%), Tata Motors (10.02%), Kia Motors (8.51%), and MG Motors (3.96%).
As automakers race to achieve electrification targets by 2030, they are integrating more technology in line with this transition. As technology continues to advance, connected cars will become even more central to the driving experience, particularly with the growing prominence of electric vehicles and autonomous driving.
For example, JSW MG Motors India has partnered with Jio to launch the MG Jio Innovative Connectivity Platform (MG-Jio ICP) with a Home to Car feature, which will be available in its upcoming Windsor EV and future EV models.
“Connected cars get a fantastic boost with electric vehicles because EVs set the stage for increased connectivity,” says JSW MG Motor’s Gupta.
Going forward
According to automakers, V2X technology will be a key driver of the automobile industry’s future. “From the IoT space, V2X will be the next leap in a few years, creating a unified connected ecosystem where vehicles, infrastructure, and connectivity platforms interact harmoniously,” says Gupta.
V2X technology allows vehicles to communicate with each other, with infrastructure, and even with pedestrians. For example, vehicle-to-vehicle communication can help prevent collisions by warning drivers of approaching vehicles. According to a report by MarketsandMarkets, the global automotive V2X market was valued at $0.5 billion in 2023 and is expected to reach $9.5 billion by 2030, growing at a CAGR of 51.9%.
A key development that has happened in the auto sector is that like we have in smartphones, cars too will receive continuous software upgrades. According to Chandra, this will ensure that cars will not be limited to the features they had when initially purchased but will continue to evolve.
“The biggest trend from the mobile industry that will influence the automotive space is the software-defined vehicle. Like smartphones, cars should keep upgrading with time and this will be a key feature for cars in the future, especially now with AI playing a major role,” says Chandra.
@OrielAstha11, @arndutt