India’s Auto Future is Smart, Safe, and Autonomous by 2030: NITI Aayog

• Chinmay
• May 23, 2025
• Automotive, Electronics, India, News
• ADAS in India, auto industry AI, autonomous vehicles India, EV manufacturing trends, Indian automotive software growth, Industry 4.0 vehicles, NITI Aayog automotive report, self-driving cars 2030, smart mobility India
• 0 Comments

The Indian automotive industry is entering a radical transformation phase, and by 2030, it may look entirely different from what we know today.

According to a recent report from NITI Aayog, key drivers of this shift include:

• Widespread adoption of smart safety technologies
• Growth in self-driving features
• Rising dependence on software and electronics
• A sharp acceleration toward electric vehicles (EVs)

ADAS Will Be the New Normal

One of the most striking projections in the report is the rapid rise of Advanced Driver-Assistance Systems (ADAS) — technologies like lane-keeping assist, adaptive cruise control, and emergency braking.

From just 42% of new vehicles in 2020, ADAS features are expected to be found in 90% of new vehicles by 2030. This shift is being driven by both consumer demand for safety and stricter regulatory frameworks.

Self-Driving Cars Enter the Scene

Autonomous driving, once a distant dream, is now on the horizon.
While less than 1% of vehicles in 2020 had self-driving capabilities, that number is expected to jump to 30% by 2030.

This trend will dramatically increase demand for:

• Sensors
• Edge AI
• High-performance computing
• Reliable automotive-grade software

In short, cars are becoming intelligent machines on wheels.

Software Will Eat the Car

Currently, software makes up just 2% of a vehicle’s total value.
By 2030, that’s expected to double to 4–5%.

And it’s not just in dashboards — software will power:

• Predictive maintenance
• OTA (Over-the-Air) updates
• Driver behavior analysis
• Autonomous navigation logic

The automotive software market is set to touch $80 billion, making cars as much a tech product as a transportation tool.

EVs Are Redefining the Vehicle Value Chain

Electric Vehicles are not only cleaner — they’re structurally different.
By 2030, nearly 50% of an EV’s value will come from EV-specific parts like:

• Lithium-ion batteries
• Electric motors
• Power electronics
• Thermal management systems

This demands a new focus on scale, innovation, and rapid prototyping from manufacturers.

Collaboration Will Be the Key

NITI Aayog emphasizes that automakers must partner with technology firms — whether for AI, cloud infrastructure, battery innovation, or IoT integration.

“Automakers that embrace software, automation, and electrification will be best positioned to thrive.” This is not just a shift — it’s a complete redesign of the automotive value chain.

Final Thoughts

From safety features to full autonomy, from EV parts to AI brains — India’s automotive revolution is going beyond just “mobility.”
It’s heading into a future where cars are software-defined, sensor-packed, and connected to the cloud.

The future of transport isn’t coming.
It’s already being prototyped.