India Connected Car Market
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India Connected Car Market Size, Share, Trends and Forecasts 2031

Last Updated:  Jul 16, 2025 | Study Period: 2025-2031

INTRODUCTION

Connected cars are all set to become a common phenomenon in the Indian Market. The Consumers are willingly  to pay more for advanced and connected technologies, and this will boost the Connected Cars market in India. Since the arrival of Hyundai Venue and MG Hector the first set of Connected Cars in India, these segment cars have sold in sizeable volumes- the auto slowdown notwithstanding.

INDIA CONNECTED CAR MARKET SIZE  AND FORECAST

There has been a mandate by Government of India where it says the commercial vehicles must feature latest vehicle telematics. This would push the automakers to equip the vehicle with latest safety and security features which increases the demand for the Connected Cars.

 

Hyundai is all set to launch its 2nd generation of its best selling SUV, Creta. Hyundai Creta 2020 will be the 2nd car from Hyundai to sport BlueLink connectivity making it an Internet Connected Car.

 

In Trucks, Daimler India Commercial Vehicles (DICV) recently showcased the new range of BharatBenz Vehicles. These vehicles comes with “TruckConnect” and “BusConnect” Connectivity features, these tools helps the operators to track the vehicles in real time. “BusConnect” feature is helpful for passengers also as it helps them to select routes, access on-board entertainment.

 

India connected car market is estimated at ~$20 Million in 2023, growing at >20% CAGR till 2030

 

TECHNOLOGY

The Connected Cars are being launched with built-in telematics boxes containing a SIM card module. It helps the owner to stay connected with car and also control it through app on the phone. The presence of sim card helps to get OTA [Over the Air] updates, thus software can be updated regularly. Most of these SIM cards are 5G ready.

 

The table below shows the technology being used in these cars:

Sl noMake & ModelConnectivityE-Sim Provider
1MG HectoriSmart Next GenBharti Airtel
2Hyundai VenueBlueLinkVodafone-Idea
3Kia SeltosUVO TechnologyVodafone-Idea
4Nissan KicksNissanConnect N/A

 

INDIA CONNECTED CAR MARKET DYNAMICS

The primary factor driving the growth of the market is the connected features attached to the vehicles. Majority of Indians who have been using the smartphone over period of time prefer buying a Connected Vehicle. There has been significant increase in the sales of the Connected Cars over the past 10-12 months. Here are the sales figures of the Connected Vehicles released in India

 

Info Graphic: Sales figures of Connected Vehicles in India

 

Although there are numerous benefits to the drivers, there are certain challenges that the Connected Car Market is facing. The more the car is connected to internet, it becomes more exposed.

 

Hackability is the major issue concerning the auto makers. If the system is compromised, owner’s privacy is at stake and the intruders can get access to the location, daily route and others. One can also gain access and control the vehicle. Major Percentage of people hinder to buy connected cars as they want to maintain the privacy.

RECENT PARTNERSHIPS IN CONNECTED CAR MARKET

  • Reliance Jio has partnered with U.S based Airwire Technologies to offer the device manufactured by the latter in India. The IOT device is said to be incorporated in the Connected Cars with Jio 4g/LTE network.
  • Tata Elxsi global technology services company collaborated with Tata Motors to develop unified Connected Vehicle Platform which is supposed to power EV cars from the Tata Motors.
  • MG Motor India has teamed up with IT giant Cognizant to deliver a smooth experience for its Hector SUV customers. Cognizant’s customer experience and enterprise management solution is a part of MG Motor’s integrated marketing and engagement program.
  • BSNL has tied up with Tata Motors to make their range of vehicles Internet Connected. BSNL has already started providing embedded SIM cards.

NEW LAUNCHES IN THE MARKET

  • Tata Motors have launched the ZConnect app for the Nexon EV offering 35 different features.
  • Ford India has introduced the FordPass connectivity feature for the upcoming BS-VI Ford Models. A cloud connected device will be factory fitted that provide real time updates of the vehicle to its owner.
  • Toyota Connected India Pvt Ltd., has launched its new office in Chennai which will work closely with the existing Toyota Connected office in Bangalore.

 

In India, Lexus, a Toyota automotive company, launched a brand-new smartphone application that provides a full range of connected car technology. With a fluid and practical manner for Lexus customers to communicate with their automobiles, the one-stop app promises to improve the ownership experience for them.

 

It's significant that the launch of this app comes after the OEM's first fully linked vehicle, the Lexus RX, began shipping. A variety of cutting-edge features, such as remote car controls, real-time vehicle status updates, and customised notifications, are integrated into the recently released smartphone app.

 

With the help of the app, Lexus owners can identify their vehicles in crowded parking lots, start their engines, change the climate control settings, and remotely lock or unlock their cars.

 

A smooth integration with well-known digital platforms and services is another feature of the app. The user-friendly layout of the app allows users to operate some smart home gadgets as well as connect to their preferred music streaming services and receive navigational aid.

 

Because of the incorporation of smart home connectivity, Lexus owners may enjoy a seamless transition between their home and vehicle environments. For the benefit of a wide range of mobile users, Lexus India has made the app accessible for download on both the iOS and Android operating systems.

 

Customers should be able to easily unlock the full potential of their connected Lexus automobiles thanks to the company's focus on making user interfaces welcoming and intuitive for them.

 

When Hyundai launched its small SUV, the Venue, in the market, it made the claim that it was the first automaker to deliver a connected car in India. Soon after, MG Hector, another well-liked SUV in the entry-level price range, was presented.

 

The renowned British automaker, which is currently controlled by SAIC Motor in China, debuted its first product in India with the Hector, boasting of its connected car technology by placing a "Internet Inside" insignia on the front fender of the SUV.

 

Another automaker that has bragged about its connections is Nissan. NissanConnect, the automaker's own connected vehicle technology, is included in the Kicks SUV, which debuted in January of this year.

 

Its other products, like the Micra, Sunny, and Terrano, also have access to the capability. Kia is another well-known company that has hopped on the connect vehicle bandwagon in the nation. The Seltos, one of the most talked-about car introductions in recent memory, marked Kia's entry into the Indian auto market.

 

In order to provide cloud-based apps for its vehicles, Mercedes introduced its COMAND Online System. Hyundai Venue Audi launched its "myAudi Connect" smart networking technology  and is allowing current owners to have their cars modified to take use of the services.

 

Although the Bavarian carmaker now provides some basic smartphone app-based services for its customers, BMW's Connected Drive services have not yet arrived in the nation.

Sl noTopic
1Market Segmentation
2Scope of the report
3Research Methodology
4Executive summary
5Key Predictions of India Connected Car Market
6Avg B2B price of India Connected Car Market
7Major Drivers For India Connected Car Market
8Global India Connected Car Market Production Footprint - 2024
9Technology Developments In India Connected Car Market
10New Product Development In India Connected Car Market
11Research focus areas on new India Connected Car
12Key Trends in the India Connected Car Market
13Major changes expected in India Connected Car Market
14Incentives by the government for India Connected Car Market
15Private investments and their impact on India Connected Car Market
16Market Size, Dynamics And Forecast, By Type, 2025-2031
17Market Size, Dynamics And Forecast, By Output, 2025-2031
18Market Size, Dynamics And Forecast, By End User, 2025-2031
19Competitive Landscape Of India Connected Car Market
20Mergers and Acquisitions
21Competitive Landscape
22Growth strategy of leading players
23Market share of vendors, 2024
24Company Profiles
25Unmet needs and opportunities for new suppliers
26Conclusion