News, 21 April 2025
According to a recent analysis by NITI Aayog, the increased demand for safety features, electric vehicles, and smart technologies is driving a significant transition in the automotive industry by 2030.
The dramatic increase in the use of Advanced Driver-Assistance Systems (ADAS) is one of the report’s main highlights. 42 percent of new cars sold in 2020 have these features, which help drivers stay safer on the road, according to the survey. Nonetheless, it is anticipated that their share of new car sales would increase quickly, reaching 90% by 2030.
The development of autonomous or self-driving technologies is another significant trend that the paper mentions. Although less than 1% of cars had these characteristics in 2020, the analysis predicts that by 2030, over 30% of cars may have some form of autonomous driving capacity.
High-tech parts like sensors, artificial intelligence (AI), and potent computer systems will become more in demand as a result.
Vehicle software is also expected to become much more important. Currently, software makes up about 2% of an automobile’s overall value. By 2030, this percentage is anticipated to climb to 4-5 percent.
The automotive software market is expected to reach USD 80 billion as cars become more networked and able to receive upgrades over the air.
The research also emphasized how the structure of car production is being altered by electric vehicles (EVs). It’s anticipated that EV-specific components, such lithium-ion batteries, electric motors, and sophisticated electronics, will account for almost half of an electric car’s price.
This implies that in order for firms to remain competitive, they must concentrate on innovation and increasing production.
It emphasized that working together with digital companies will be essential to determining how mobility develops in the future. Automakers will be best positioned to prosper in the next stage of the automotive revolution if they promptly adjust to these changes by adopting automation, electrification, and software.
About Niti Aayog
NITI Aayog (National Institution for Transforming India) is a policy think tank of the Indian government. Established in 2015, it replaced the Planning Commission. NITI Aayog aims to foster cooperative federalism by involving states in the economic policy-making process and to promote innovation, entrepreneurship, and sustainable development in India.
