Smart tech, self-driving cars, and EVs to redefine auto industry by 2030: NITI Aayog Report

Daijiworld Media Network- New Delhi

New Delhi, Apr 19: The Indian automobile sector is set to undergo a sweeping transformation by 2030, with cutting-edge technologies, enhanced safety features, and electric mobility taking centre stage, according to a recent NITI Aayog report.

The report identifies Advanced Driver-Assistance Systems (ADAS) as a major driver of change. While ADAS was featured in 42% of new vehicles in 2020, this figure is expected to surge to 90% by 2030, propelled by increasing consumer awareness and regulatory push for road safety.

Self-driving technology is another emerging trend highlighted in the report. Currently, under 1% of vehicles are equipped with autonomous features, but by the end of the decade, over 30% of vehicles may have some level of self-driving capability. This shift will significantly increase demand for sensors, AI systems, and advanced computing infrastructure within vehicles.

The integration of software in vehicles is also poised to expand. Presently, software constitutes about 2% of a car’s total value. This figure is projected to double to 4–5% by 2030, with over-the-air updates and connectivity features becoming standard. The automotive software market is anticipated to reach USD 80 billion by then.

Highlighting the rapid transition to electric mobility, the report notes that EV-specific components—like electric motors, lithium-ion batteries, and smart control units—are expected to contribute nearly 50% of the value of an electric car. As such, auto manufacturers will need to ramp up production and innovation to remain competitive.

NITI Aayog emphasises that partnerships between automakers and tech firms will be essential. Those who swiftly embrace software-led design, automation, and electrification will be best equipped to navigate the next era of the global automotive revolution.

“The future of mobility lies at the intersection of technology and sustainability. India’s auto industry must align quickly to tap into the opportunities of the evolving landscape,” the report concludes.

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