Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market. While it’s true that at the end of 2023, there wasn’t an adequate supply of electric mobility hubs, the charging infrastructure in Europe has improved drastically. Currently, there are about 750,000 public charging stations with a combined 28.7 GW of charging capacity. Notably, China, Europe, and the US have established themselves as the leading EV markets, with other countries following suit.

Best of 2025 How Generative AI Is Transforming Industry

Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry. The answer lies in education, infrastructure, and trust-building—slow but steady wins the race. The software integrates a one-shot multitask network capable of performing 2D detection, semantic segmentation, and monocular depth estimation.

China remains dominant but new players are also making noise on the EV scene

• Most favour an opt-in approach (63%), and many are willing to share data for benefits, with 67% open to lower insurance rates, 43% for personalised features, and 36% for improved safety options.
• Search volume for “Infineon Technologies” has seen modest growth over the past 5 years.
• While BEVs and PHEVs showed some growth in September 2024, the year-to-date figures for BEVs are still lower than last year, and PHEVs also experienced a notable decline.
• This technology will be further developed through 2025, with the end results showing up in the following years.
• Shared micromobility vehicles are becoming a popular mode of transportation in cities where the pollution from cars and traffic congestion is particularly evident.
• Quantum computing accelerates material discovery and crash simulation, and edge computing and 5G offer real-time responsiveness in vehicles.

Make sure you stand out from your peers by focusing on every intricate detail through marketing and staying at the top of buyers’ minds. The future of automotive industry trends suggests that the automotive parts market will grow aggressively due to a growing demand for replacement parts and an increase in vehicle production. The segment’s sales will rise in the first six months of fiscal 2025, while the industry’s revenue will increase at the same pace to $33.8 billion.

Overview – Automotive Industry

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.

OEMs are juggling more regulations with fluctuating demands and ongoing chip shortages

This article highlights the company’s strides in electrification, material innovation, and circular economy practices. Notable achievements in 2024 include significant progress in reducing emissions and advancing transparent ESG reporting. As net-zero targets become the norm, the reliance on renewable energy is only set to grow. Exciting developments in energy storage and green hydrogen technologies promise to redefine production processes further.

• The automotive industry is highly dynamic, and trends are subject to change over time.
• However, growth EV adoption is predicted to slow, with year-on-year growth falling from 15% in 2024 to 11% in 2025.
• 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.
• Along with an increase in refueling stations, look to see an increase in the variety of FCEVs available to consumers in the coming years.
• These are the old and traditional methods that buyers use to contact dealers or check your products or information about the brand on search engines.
• These budget-friendly models aim to stimulate adoption following a dip in EV sales.
• Additionally, smart virtual assistants are emerging as a key HMI feature, aiding drivers and passengers in interacting with vehicles and external services.
• These advanced technologies are widely used across a great number of industries and the automotive domain is no exception.

🔋 Battery Technology Breakthroughs and Range Anxiety Solutions

Internet of Things (IoT) and real-time monitoring solutions improve shipment tracking, warehouse oversight, and production visibility. In addition, it offers charging solutions for e-bikes, including wallboxes and mass-charging systems for hotels and public spaces, thereby broadening access to sustainable transport. Czech Republic-based startup IONT tech manufactures EV charging stations that support home, business, and public use.

Electric Mobility

Telematics adoption in logistics and transportation industries is driven by features such as real-time tracking, driver behavior analysis, and fuel consumption reduction. Join us today and access AMS’s wealth of global news, insights, intelligence and content, and to make valuable connections with your peers from across the automotive industry. Volkswagen is using digital twin technology at its Wolfsburg plant to simulate and optimise production processes for the Tayron SUV. This ensures precise planning, reduces downtime, and enhances efficiency in assembly operations. This decision also highlights a broader trend toward diversification in battery production hubs. With the Middle East emerging as a significant player in the EV supply chain, manufacturers must adapt their strategies to seize these new opportunities.

Electric Cars.

Demand may decelerate due to the end of Chinese subsidies for EVs, but it should not lead to a decrease. Apart from this, reduced access to EV charging points remains a significant challenge, according to consumer trends in the automotive industry. Moreover, the growth of the automotive IoT market signals a strong trend toward connectivity. IoT creates more opportunities for manufacturers to market to consumers even after they’ve made a purchase. Consistent brand messaging across all channels, including in-car infotainment systems and websites, can help foster long-term customer relationships, promoting brand loyalty and advocacy.

Inside Xiaomi’s EV Factory

Safety concerns remain in the spotlight – this is leading to greater acceptance of incremental developments in advanced driver-assistance systems (ADAS) rather than pushing for immediate full autonomy. environmental and safety data in one VIN report Major automotive manufacturers are responding by rethinking their revenue models and investing heavily in on-demand vehicle access services. Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape. Moreover, automakers offer features on demand as they are turning cars into service platforms.

• In some cases, car dealerships are charging huge markups on the inventory they do have.
• French startup Airnity provides a cellular connectivity platform for the automotive industry to enhance connected car operations.
• The APH-01 incorporates flax fiber in its body shell, which reduces weight, increases impact resistance, and improves vibration damping.
• One of the most significant shifts in the automotive industry is the widespread adoption of electric vehicles (EVs).
• The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024.
• The main issue holding back the popularity of these vehicles is a lack of hydrogen fueling stations.
• The market for FCEVs is expected to grow at a remarkable CAGR of nearly 70%, through 2026.
• FlxTran’s approach improves connectivity and access to opportunities beyond major cities.

Automotive Semiconductors: Asia-Pacific Leads with 45% Global Share

• Through our work with automotive innovators, we witness first-hand how rapidly this sector is evolving.
• The current trends in the automotive industry seen in previous years will remain in 2025 and are likely to become automotive future trends.
• The same report states that 68% of drivers believe car companies should collect personal data, but only 5% agree to unrestricted collection.
• However, their preferences changed after some time, Buyers are willing to spend an amount, while looking for the best vehicles available in the market.
• UK-based startup Electric Car Converts changes classic Land Rovers into EVs by replacing combustion engines with modern electric motors and battery packs.
• Additionally, Europe and the U.S. have sought to bolster their chip and semiconductor production with the ‘European Chips Act’ and the ‘CHIPS and Science Act’, respectively.
• North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures.
• That’s no longer a distant future — it’s happening now, and it’s transforming everything from manufacturing floors to your driveway.
• IoT solutions can offer numerous benefits to end-users by utilizing interconnected systems, such as better safety, driving assistance, and predictive maintenance.

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. After the pandemic, we developed a habit of shifting all requirements to online methods, and so do goes with the automobile industry. Our new generation which is called millennials or Genz researches everything online before the actual purchase.

Auto Sales Impacted by Low Inventory and High Prices

The integration of renewable energy into automotive production took centre stage in 2024. This article sheds light on how OEMs are embracing solar, wind, and hydrogen power to achieve sustainability goals. From energy-efficient factories to green hydrogen applications, the examples showcased highlight the industry’s shift toward greener production methods. Battery technology has taken centre stage in the EV revolution, and this article provides a deep dive into the leading chemistries and formats that defined 2024. From LFP to cutting-edge solid-state batteries, it examines the trade-offs between cost, performance, and sustainability while uncovering key regional trends. These advancements are critical as manufacturers aim to balance efficiency, durability, and safety.

It uses AI-powered damage recognition, estimation, and work distribution to streamline repair processes. Also, its platform manages claims and mechanical breakdowns across vehicle models from manufacturers. Digital replicas and simulations allow manufacturers to test efficiency improvements before implementation. For example, BMW’s San Luis Potosí facility applies digital replicas to reconfigure layouts and minimize waste.

As we look ahead to 2025, these trends highlight the challenges and opportunities that manufacturers face. We explore eight most influential trends expected to define the automotive manufacturing landscape, offering insights into what lies ahead for the industry. The European Commission will start talks in the New Year on the future of the industry in the region as sales of electric vehicles stall. This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years.

Advanced Safety Features

• Regardless, with the continued global slowdown of EV adoption, we can also expect original equipment manufacturers (OEMs) to follow suit, with a decrease in the level of production, especially in the West.
• Additionally, the startup offers plug-and-play solutions that simplify deployment in safety-critical applications such as EV fast charging and sensor integration.
• The automotive regenerative braking market is expected to reach USD 13.83 billion by 2029, growing at a CAGR of 15.8%.

Also, digital twin technology builds virtual replicas of supply chains to simulate disruptions and optimize performance. The USMCA requires 75% of motor industry components to be produced in North America. And the US Inflation Reduction Act ties USD 7500 EV subsidies to regional sourcing. Cost efficiency strengthens the case, with Mexico offering a 35% landed-cost edge over China in 2022.

• It enables sensor fusion and control for advanced driver assistance and autonomous driving.
• Make sure you stand out from your peers by focusing on every intricate detail through marketing and staying at the top of buyers’ minds.
• Driver assistance technology, in particular, can go as far as detecting driver fatigue by monitoring their eyes and taking measures to avoid car accidents.
• The startup also offers Leap EasyTrack, a vehicle tracking solution that allows for quick and easy self-installation, making it simple to transfer between vehicles without downtime.
• General Intelligence strengthens the evolution of software-defined vehicles by aligning human-inspired learning with safety.
• The startup uses automotive sensors and compute platforms to offer a scalable solution for cars to enable large-scale fleet learning.

By 2030, automotive industry trends 2030 will witness a significant shift towards electric and autonomous vehicles, driving sustainable growth in the car market. The infrastructure for EVs is expected to become more widespread and advanced, supporting the increasing number of electric vehicles on the road. Additionally, autonomous driving technology is set to dominate the industry, creating a safer and more efficient transportation system. Following these trends helps greater penetration in the emerging market, like the growing adoption of electric vehicles in China and India.

GenAI offers potential for advanced applications like predictive maintenance, where AI could assist in analyzing vehicle data and forecast potential failures before they occur. This would mark a critical shift toward an era of personalized vehicle recommendations and optimized repair services. By addressing issues proactively, manufacturers and service providers can further reduce breakdowns, enhance vehicle reliability, and improve overall customer satisfaction.

How is the automotive industry adapting to the shift towards electric vehicles?

The industry itself, however, has remained relatively stable over the last decade.

In the first half of 2023, electrified vehicle production surged by 70%, highlighting the rapid pace of investment in EV production capabilities, and continues to grow. As battery technologies evolve, the future promises breakthroughs in recyclability and energy efficiency. Innovations like solid-state batteries are set to revolutionise manufacturing priorities and reshape the EV supply chain. These over-the-air updates are becoming essential for ensuring vehicle reliability, safety and security, and are opening new revenue streams for manufacturers. Moreover, its software platform manages real-time energy flows and integrates with solar systems to optimize renewable energy usage.