The EU’s Green Deal and its accompanying “Fit for 55” initiative aim to cut carbon emissions drastically by 2030, piling new expectations on manufacturers to reduce their environmental impact. Adding to the challenge, measures such as stricter Euro 7 tailpipe standards and updated rules on battery recycling demand deeper innovation within supply chains and operations. The global automotive industry, responsible for 10% of the world’s carbon dioxide emissions, faces ongoing pressure to overhaul its practices. However, the landscape is proving difficult to steady with an intricate maze of regulations that differ by country or region and lack a unified benchmarking process for sustainability.

CARNIQ Technologies specializes in Car Security & Compliance

The growing shared mobility trend also looms as more people are using shared transportation methods instead of owning cars. 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.

• Indian startup Starkenn develops AI-powered ADAS to enhance vehicle safety and reduce road accidents.
• It also allows operators to integrate services and microservices in the chargers to make the charging process profitable.
• Australian startup V2Grid designs V2G technology that converts EVs into mobile energy resources for homes, businesses, and the national grid.
• Manufacturers are prioritizing robust security measures to protect sensitive consumer data and prevent malicious interference.
• The industry will continue to experience disruptions from geopolitical headwinds to regulatory and legislative developments, data security and economic challenges.
• A major driver of this growth is the increasing focus on commercial applications, such as logistics and ride-sharing services.
• Companies like Tesla, Waymo, and others are working tirelessly to refine the technology, which includes machine learning, computer vision, and lidar (light detection and ranging) systems.
• 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.

is set to be a big year for automotive production

While regulatory hurdles remain, 2025 will likely see significant progress in integrating these services into urban infrastructure, offering consumers affordable, sustainable alternatives to owning a car. On top of all the 2025 automotive trends there will be the impact of tariffs set by the US and Europe. With the new administration of Donald Trump in January, the trade war with China will have a major impact on the automotive industry in 2025.

Waymo’s Autonomous Cars: A Look at the Future of Transportation in Los Angeles

• Now, 94% of consumers check the manufacturer’s website for product information before purchasing a part.
• AI-powered semiconductors drive transformation in autonomous driving systems by enabling real-time communication with road infrastructure and enhancing safety features such as emergency braking systems.
• For instance, Audi and BMW vehicles exchanged sensor data, including camera feeds, during 5G-V2X Direct demonstrations in Berlin.
• By leveraging tech and sustainable practices, the automotive sector can meet the challenges of tomorrow while delivering exceptional value to consumers.
• Emerging automotive industry trends include the increased adoption of electric vehicles (EVs), advanced semiconductors, and the growing focus on vehicle cybersecurity.
• This comes as China continues to make their presence known in the global EV scene, with ramped-up production and dominance in the international EV market.
• While full autonomy is still on the horizon, advanced driver assistance systems (ADAS) are already transforming how we drive.

As we look forward to 2025, RSM’s automotive professionals predict a slowdown overall in the growth of the industry as well as a reduction in overall margins and profitability. Many OEM’s are already revisiting original forecasts and realigning through-put and production schedules accordingly. Automotive suppliers are renegotiating their vendor/supplier contracts to align with these new predictions. What lies ahead is not just a continuation of trends but the potential for transformation that pushes the boundaries of how we move, connect, and thrive. The recently proposed 25% tariffs on imports from Mexico and Canada, while temporarily delayed, may also have a drastic impact on the global automotive supply chain. 2025 is shaping up to be an interesting year for automotive with regards to global shifts in the market with a mixed bag of potential harmony and disruption.

What are the latest automotive industry trends in 2024?

• It also aligns with ISO for cybersecurity and ensures reliability under demanding automotive standards.
• Indian startup RevitsOne offers AI-powered fleet-management software that is suitable for fleets of varying sizes.
• The road to 2025 is set to bring even more dynamic changes, with global collaborations, technological breakthroughs, and bold strategies defining the future of manufacturing.
• The autonomous vehicle (AV) market is on an impressive growth trajectory, expected to surge from a market value of $1,921.1 billion in 2023 to a staggering $13,632.4 billion by 2030, with a CAGR of 32.3%.
• Statevolt’s decision to build its gigafactory in the UAE rather than Europe has been a talking point this year.
• The automotive regenerative braking market is expected to reach USD 13.83 billion by 2029, growing at a CAGR of 15.8%.
• The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024.

This is fueled by increased vehicle production and sales in China, Japan, and South Korea. The AV market is projected to reach USD 1.73 trillion by 2033, growing at a CAGR of 31.85% from 2025 to 2033. Automakers are investing in cybersecurity technologies such as hardware security modules (HSMs), AI-based intrusion detection systems, and secure over-the-air (OTA) updates to address these challenges. Automotive Manufacturing Solutions (AMS) is the essential resource for automotive manufacturing professionals and suppliers globally. We invite you to revisit these top stories, share your perspectives, and stay tuned for more in-depth coverage of the trends shaping the automotive world. Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry.

Shared mobility

Its vehicle tracking system provides 24/7 real-time family safety through VIN decoding visibility, supported by self-install and engineer-fitted options, with no minimum fleet size required. With the introduction of 5G networks, advanced telematics features like real-time diagnostics, autonomous driving, and improved safety systems are becoming even more feasible. Canadian startup Xaba develops intelligent automation solutions, materials, and processes for sustainable manufacturing. Its AI-driven control systems, xCognition and xTrude, enhance industrial robotics and additive manufacturing by automating programming and improving precision.

Industry 4.0

Norwegian startup Chargerly designs vehicle-to-building (V2B) solutions that integrate EVs with building energy systems to improve resilience, efficiency, and sustainability. Automotive drivers now expect vehicles to behave like smartphones, gaining features through over-the-air (OTA) updates. Regulations also support adoption, as safety and emissions standards require continuous updates and smarter architectures. Indian startup SWYTCHD manages vehicle subscription services that focus on electric two-wheelers and cars. This enables an all-inclusive model that replaces ownership with monthly flexibility.

Electric Mobility

They are discussing the prospect of AI for driving systems, the implications of some regulatory changes for automotive innovation, and the potentials of renewable sources for energy for the automobiles. Blockchain secures supply chains and in-car data, and extended reality (XR) advances design, testing, and training. Additive manufacturing shortens prototyping cycles, and IoT-driven analytics improve predictive maintenance. Changing consumer preferences, cost efficiency, technological progress, and sustainability targets drive this innovation. A Deloitte UK study found that 52% of all consumers show no interest in car subscription models; interest is higher among younger people (age 18-34). These all-inclusive options reduce the financial burdens of ownership, especially for urban users.

KonnectShift provides IoT-based Fleet Optimization

Toyota continues to emphasize hybrids as a critical part of its electrification strategy. Let’s have a closer look at the top automotive trends poised to dominate the landscape in 2025. Supplemented by the categorisation of our experts, a clear picture emerges of where the industry stands – and where it should develop in order to remain fit for the future. Automakers are also adopting hyper-personalized features to offer customized experiences through infotainment systems, user profiles, and real-time navigation updates. Many of these vehicles will feature over-the-air (OTA) upgrades and V2X communication. Xaba’s proprietary process and AI-driven large-scale 3D printer enable sustainable materials, such as fibers, fiber-reinforced polymers, and metals, to create functional car chassis.

Software-Defined Vehicles: Cars as the Ultimate Connected Devices

Approximately 70 percent of industrial companies report faster chip supply, possibly due to weakened consumer spending and demand. These constraints are expected to persist into 2025, as semiconductor production has exceeded full production-rate utilization since 2019, with recent rates surpassing 95%. Battery manufacturers have significantly reduced their production since early December due to the unpromising demand in the upcoming months.

Chargerly develops Vehicle-to-Building Solutions

Connected vehicles are entering a software-defined era where 5G, AI, and V2X convert cars into real-time data nodes that communicate smoothly with infrastructure, other vehicles, and the cloud. Our new report spotlights 10 connected vehicle trends to watch in 2026 that promise safer, smarter mobility and fresh revenue streams for automakers. Curious how electric vehicle trends like solar integration, AI-powered systems, and modular design are innovating mobility?

Vehicle purchases shift online

For consumers, 5G means richer infotainment, seamless smartphone integration, and enhanced navigation services. The automotive ecosystem will become more interconnected, paving the way for smart cities and mobility-as-a-service (MaaS). The transition to electric vehicles has moved beyond early adoption and is now something of a global imperative. The uptake in EVs is experiencing a surge, driven by rapid advances in battery technology, an expanding charging infrastructure and supportive government incentives.

• Israeli startup DAV offers a decentralized autonomous vehicles platform based on blockchain technology.
• The global Automotive Human Machine Interface market, valued at USD 70.41 billion in 2022, is expected to grow significantly, reflecting these advancements in automotive technology.
• More than 12% of consumers who financed a new car in June of 2022 had a monthly payment of $1,000 or more.
• Moi uses continuous fiber manufacturing (CFM) technology, robotic intelligence, and digital fabrication to deposit fibers.
• In 2024, the automotive industry experienced significant transformations, with advancements in electric vehicles (EVs), autonomous driving technologies, and shifts in global markets.
• The autonomous vehicle sector will advance as UN regulators lift their speed limit.
• Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs.
• Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022.
• From electrification and software integration to new mobility models, the industry faces unprecedented change.

Volvo has adopted megacasting techniques to simplify EV production, reducing the number of components required and streamlining assembly processes. This both lowers costs and improves vehicle performance, addressing both market demands and sustainability goals. Autonomous driving will continue progressing from Level 2+ driver-assist to Level 3 conditional autonomy in geo-fenced areas. Full Level 4 and 5 autonomy remain years away due to regulatory, ethical, and technical challenges. Expect more robotaxi pilots, fleet autonomy, and advanced safety features integrated into mainstream cars. The focus will also be on cybersecurity and fail-safe systems to build consumer trust.

The automotive industry leads in technological innovation that will reshape vehicle design, construction, and user experience in 2025. Emerging automotive industry trends include the increased adoption of electric vehicles (EVs), advanced semiconductors, and the growing focus on vehicle cybersecurity. The future trends in the automobile industry predict a roller-coaster ride for players. In 2025, the automotive industry will face global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain issues. Despite these challenges, global new-vehicle sales are projected to remain flat, with new-car sales increasing.

German startup ChargeX offers a modular EV charging solution that converts parking spaces into charging stations. The startup’s platform, Aqueduct, is easy to install, has 4 charging modules with up to 22kW, provides monthly reports, and uses a Typ2 charging cable. The solution recognizes the power requirements of every car and automatically controls the charging speed for each vehicle. Swedish startup Volta Trucks makes Volta Zero, an electric truck for urban deliveries. This vehicle’s design prioritizes driver safety and comfort, featuring a central driving position and panoramic vision for enhanced visibility.

🚗 Top 7 Automotive Industry Trends Shaping 2026

Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canada’s leading LEV distributor. Daymak will assemble Avvenire’s vehicles and distribute them through its network of over 200 dealers in 25 countries. 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. Europe is projected to reach a 20.4% market share, while the US is likely to reach 11.2%.

Volta Trucks manufactures Electric Trucks

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