India's Automotive Industry Shaped by Three Key Trends in 2025

Climate convergence, globalisation fractures, and technology innovation are the three main trends that will define India's automotive industry in 2025, according to the 10th edition of the Ipsos Global Trends Report released on Tuesday.

The report, which focused on "Digital Indians" and "Early Automotive Adopters," found that 45% of citizens are willing to make sustainable choices themselves, while 30% believe private companies should provide more sustainable options. Electric vehicles emerged as the preferred sustainable transportation option among early adopters.

"The manifestation of Climate Convergence for the Indian automotive industry would entail carmakers aligning their strategies and practices to address climate change and reduce carbon emissions," said Balaji Pandiaraj, Executive Director and Head of Ipsos Automotive Research & Customer Experience in India.

The study identified a growing consumer preference for vehicles designed specifically for the Indian market and produced domestically. With India's per capita income projected to increase from $2,600 to $4,500 and low car ownership rates, demand for both internal combustion engine vehicles and electric vehicles is expected to rise.

Technology trends revealed mixed sentiment among consumers. While 42% of respondents believe modern technology is essential for solving future challenges, 33% expressed concern that technological advancements could be harmful.

Artificial intelligence is transforming automotive safety through Advanced Driver Assistance Systems (ADAS), which utilize AI algorithms to assist drivers and enhance vehicle safety. The government's push for sustainable mobility solutions has increased electric vehicle adoption, particularly among digital-first consumers.

"Technology will have far reaching implications for the automotive industry. AI driven features like ADAS will drastically reduce road accidents, EV adoption will reduce AQI and carbon emissions," Pandiaraj noted. He added that connected vehicles will become standard rather than exceptional features.

The automotive industry in India has been undergoing significant transformation in recent years. The government's emphasis on reducing carbon emissions has led to policy initiatives supporting electric vehicle manufacturing and adoption. Several major manufacturers have announced plans to increase their electric vehicle offerings in the Indian market, while also working to develop models specifically designed for local conditions and preferences.

Ipsos, one of the world's largest market research and polling companies, operates in 90 markets globally with over 20,000 employees. The company has been listed on the Euronext Paris since 1999 and serves approximately 5,000 customers worldwide.