The Advent of Connected Vehicles: eSIM Technology and Enhanced Security

The automobile, in its various guises, has been around since the late 1800s, and through the decades since then we have seen steep changes which shifted what was possible in terms of safety, performance, entertainment and efficiency. And now the next game-changer is the connected vehicle – where cars will interact with their surrounding environment, including traffic infrastructure, other cars and pedestrians, through a communication system known as Vehicle to Everything (V2X).

This technology empowers vehicles to exchange data and coordinate actions to further shift the possibilities of safety, performance, infotainment and efficiency and will even be a key enabler of self-driving cars.

Like many other places, connected vehicles are starting to gain traction in India. The market for connected cars in India reached US$4.3 billion in 2024, and is expected to grow 19.1% annually between 2025 and 2033. 

As a critical enabler for the progression towards vehicle autonomy, cellular vehicle-to-everything (C-V2X) technology will unlock new dimensions of safety and efficiency. However, a key challenge for enabling C-V2X applications is the infrastructure needed to transfer large amounts of data between the vehicles quickly and seamlessly. 

5G networks can provide network bandwidth to meet the low latency requirements. This can enhance the speed and reliability of in-car connectivity, enabling C-V2X as well as more advanced features and services. For example, 5G enables connected vehicles to process data in the cloud and get results in near-real time. With this result, machine learning can generate accurate models of the car’s surroundings to prompt immediate adjustments like slowing down or changing lanes.

Balancing user security with connected, personalized experiences
However, there is one undeniable truth in the information age: Anything connected to the internet faces a risk of being hacked. Beyond the immediate implications for security as connected vehicles can be remotely commandeered by malicious actors, car users also risk losing their personal data.

As the demand for connected vehicles continue to grow, automotive manufacturers must address security and compliance challenges as quickly as possible. With more vehicle data collected and transmitted over the air, ensuring end-to-end encryption and protection from tampering is more critical than before.

This is of particular concern for automotive manufacturers, especially after the release of the public draft of the Digital Personal Data Protection (DPDP) Rules 2025. According to the Act, there would be stricter restrictions on cross-border data transfers, requiring the government to issue guidelines outlining when such transfers are permissible, essentially a mandate on local data routing. This Act would also lay down clear protocols for how personal data of Indian citizens should be handled, processed, and secured.

It should also be noted that 2025 is regarded as the 'beginning' of the smartphone era for cars in India; 5G connectivity, on-device generative AI and cloud capabilities are expected to be available in connected cars across multiple segments. How should manufacturers balance data and user security with the promise of seamless, personalized experiences that are standard in connected cars? 

eSIM: Powering the Next Generation of In-Car Connectivity

Traditional SIM technology has powered India’s digital growth for decades, but it falls short in meeting the demands of today’s connected vehicles. The future calls for greater flexibility, security, and compliance, requirements that traditional SIMs cannot fulfil.

eSIM technology, by contrast, is purpose-built for the connected era. One of its most significant advancements is In-Factory Profile Provisioning (IFPP), a process where eSIM profiles are securely loaded onto devices during manufacturing.

IFPP enhances security and regulatory compliance by enabling local cellular profiles and allows automakers to scale deployments efficiently while reducing the number of physical SIM variants (SKUs), streamlining logistics across India’s diverse market.

eSIMs also support dynamic carrier switching, maintaining seamless connectivity as vehicles move across regions. This ensures uninterrupted service for critical applications, while tamper-proof data storage and secure communication channels protect both the vehicle and its occupants.

Enhanced Safety and User Experience

User safety and security get a significant boost from eSIM technology. Separate profiles for vital car services, such as emergency eCall, can be set up within a single system. The emergency eCall profile, for example, can automatically alert emergency services in the event of a road accident, operating independently from the car’s infotainment system and ensuring critical communications are always prioritised.

For everyday use, eSIM technology offers substantial benefits to Indian consumers and drivers. The data plan for the car’s infotainment system can be linked directly to the driver’s mobile carrier, providing seamless connectivity without the need for additional SIM cards. The car’s built-in antenna delivers a stronger, more reliable connection than a typical smartphone, especially valuable in areas with patchy network coverage. Importantly, this setup also preserves the phone’s battery life, as drivers no longer need to rely on their mobile device’s hotspot function for in-car connectivity.

eSIM adoption requires a collaborative effort

eSIM technology is critical for enabling a secure, future-ready connected vehicle experience in India. However, successful adoption requires coordinated action across the automotive ecosystem. To ensure buy-in from government, regulators, suppliers, and vendors, manufacturers must:

• Engage with government regulators to provide input as they draft regulations for connected vehicles and telecom usage.
• Develop a robust, secure, and compliant local eSIM provisioning and management infrastructure. Adoption of advanced international standards such as SGP.32, designed to simplify and secure large-scale eSIM deployments, can help Indian OEMs ensure interoperability and future-proof their offerings for both domestic and export markets. The adoption of the SGP.32 standard will not only change connected cars but will revolutionize many IoT Use Cases in the coming time.
• Educate the public on the benefits of the connected car experience, especially in emerging markets where personalization and entertainment are key value add-ons.
• Encourage automotive OEMs and suppliers to integrate eSIM technology into vehicles for both domestic and export markets.

By embracing global standards like SGP.32 and fostering collaboration across the ecosystem, India’s automotive sector can accelerate the adoption of secure, scalable, and innovative connected vehicle solutions. 

Automakers stand to gain transformative advantages from eSIM technology, unlocking the potential to deliver advanced mobility services throughout India and beyond. This innovation is fundamental to powering the next generation of smart, connected vehicles.

Sachin Arora is Head of the Mobile Security Division at Giesecke+Devrient (G+D) MS India. Views expressed are the author's personal.