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We analysed the 100 most important new product launches, services and innovations coming to the automotive industry in 2025 to derive technology trends across electric cars, AI and autonomous and connected driving.
To learn more about opportunities in automotive, get access to our Opportunity Radar1.
To derive opportunities, we analysed the top technologies in artificial intelligence, autonomous vehicles, electric cars, and connectivity in 2025.
In 2025, new technology in the automotive industry will feature AI hardware and software for autonomous driving and intelligent vehicles, solid-state batteries, flex-fuel hybrids, and modular EV platforms tailored for global markets.
AI-Defined Vehicles In November 2024, XPeng showcased their latest P7+ sedan marking it as “the world’s first AI-Defined Vehicle”2. What makes this vehicle different is the integration of AI to develop intelligent technologies across vehicle domains for premium passenger experiences.
XPeng’s P7+ integrates AI across the chassis, powertrain, driving system, smart cockpit, and XPENG’s AI Hawkeye Visual Solution, making intelligent driving an essential feature of the future mobility experience.
XPeng joins several automobile manufacturers, automotive suppliers and mobility players integrating artificial intelligence new technology in Automotive industry, such as Generative AI, NLP and Machine Learning.
Uber will launch an AI assistant for drivers in the U.S. powered by OpenAIโs GPT-4o in 2025.
Arm and Intelโs new hardware solutions empower Tier-1 suppliers and OEMs to build AI-enabled products, promoting a decentralized ecosystem. New technology in automotive industry includes AI-automotive GPUs and chiplets.
3GPU Advancements: Intelโs Arc Graphics for Automotive marks a leap in automotive AI performance, enabling real-time processing for intelligent cockpits and immersive user experiences.
Automotive Chiplets: Arm’s Compute Subsystems (CSS) for chiplets accelerate the development of AI-driven vehicles, emphasizing modularity and faster iteration cycles for automotive electronics.
BMWโs iFACTORY employs NVIDIA’s Omniverse platform to create a digital-first manufacturing process.
Densoโs commitment to a 24-hour unmanned operation facility highlights the use of robotics and digital twins to optimize efficiency, ensuring minimal human intervention while meeting future production demands.
Unique software capabilities become key differentiators in a crowded market. Competition in AD-SW Stack is getting stronger because it’s a key enabler to achieving and monetizing autonomy.
Automakers follow three strategies in Autonomous Driving Software:
Automakers are focusing on in-house and partner-led software development to customize and optimize autonomous driving.
Tesla, Mercedes-Benz, BMW, XPeng, Toyota are developing in-house expertise to leverage the benefits of full customisation with specific vehicle performance and brand identity, reduced dependency on external licensing fees and partnerships and seamless updates to improving the user experience over time. However, the face high upfront R&D costs, talent shortages and complexities in scaling.
General Motors, Volkswagen, Volvo (ecarx), Hyundai, Jaguar Land Rover (NVIDIA) are among the automakers following an outsourced development strategy. This strategy could enable faster time-to-market, cost-savings and flexibility in selecting state-of-the-art components.
The rise of software-defined platforms like Ecarxโs Cloudpeak and SiEngineโs AD1000 chip is driving innovation in autonomous driving stacks.
The integration of AI is bringing innovations in Autonomous driving, from Level 2-3 ADAS (XPENG vision-based ADAS without Lidar), to take-over control (Waymo) and traffic monitoring (SoftBank Group Corp.).
XPeng is among other carmakers (Baidu, Inc.–JIDU Auto, and Tesla) exploring Lidar-less, vision-based Autonomous Driving with their “AI-Defined Vehicle” P7+.
Plus SuperDrive Level 4 self-driving software built on Generative AI and open foundation models will be ready for driverless operations in 2025.
Waabi to Bring the First Generative AI-Powered Trucking Solution, Built on NVIDIA DRIVE Thor, to Market.
By 2025, Level 4-Autonomous driving will transition from pilot projects to scalable deployments, shaping the future of mobility and transportation ecosystems globally.
Automakers like Honda, Mercedes-Benz, and XPENG are pushing boundaries with advanced Level 3 (cruising autonomy).
New technology in automotive industry from the likes of NVIDIA (DRIVE Thor) and partnerships with firms like Momenta and Helm.ai enable significant leaps in capability.
Aurora and Waabi are pioneering autonomous truck solutions, targeting commercial deployments by 2025. Scaniaโs mining trucks and Continentalโs autonomous agricultural robots showcase non-passenger use cases for autonomous technologies.
Next-gen sensors like 4D imaging radar (Arbe chipset) and high-performance lidar (Hesai for Leapmotor) improve detection accuracy and range. This new technology in automotive industry is critical for enabling safer and more reliable autonomous functions.
Read the 10 biggest opportunities in Autonomous Driving in 2025.
Partnerships to make all vehicles โSoftware-Definedโ, i.e. always up-to-date and manage complexity are on the rise. New Technology in Automotive Industry in 2025 includes new automotive processors to support immersive experiences, automotive digital twins and more.
Hyundai’s SDV Transformation: Hyundai’s ambitious roadmap aims to make all its vehicles SDVs by 2025, enabling over-the-air (OTA) updates for functionality upgrades. This strategy emphasizes Hyundaiโs commitment to creating vehicles that can evolve with user needs, making hardware a foundation for long-term software services.
JLR’s collaboration with NVIDIA DRIVE for SDVs focuses on AI-powered safety and autonomous features. This partnership highlights the growing trend of automakers teaming up with tech companies to develop robust SDV platforms.
Create immersive In-vehicle experiences: Connected services, such as advanced IVI systems, create personalized and immersive experiences for drivers and passengers.
Hyundaiโs adoption of Samsung’s Exynos Auto V920 processor for its next-generation in-vehicle infotainment (IVI) systems is a step forward in delivering high-performance, immersive driving environments. With this new technology in automotive industry, Hyundaiโs vehicles will remain competitive in connected car experiences.
Electrification technology in automotive industry to power efficiency and affordability includes Solid State Batteries, Alternative Powertrains and ultra-fast EV Charging.
Suzuki-Toyota Collaboration: Suzuki will manufacture a nimble BEV SUV for Toyota at its Gujarat plant in India starting in 2025. Featuring a 4WD system, this model underscores Toyota’s focus on leveraging Suzukiโs cost-effective production capabilities to expand in emerging markets.
BMW Vision Neue Klasse: BMWโs next-generation electric platform emphasizes computing power and efficiency, with its iX3 crossover leading a series of innovative BEV models.
Affordable BEVs on the Horizon: According to Goldman Sachs, battery prices are projected to fall nearly 50% by 2026, potentially bringing EV ownership costs in line with gasoline cars. Advances in battery chemistry, such as cell-to-pack technology and higher energy density, are accelerating this shift.
Brands are tailoring products for regional markets, such as Toyotaโs flex-fuel hybrids for Brazil and BYDโs dealership expansion in Japan. These strategies ensure relevance in diverse regulatory and consumer landscapes.
Audi’s focus on the Q6L e-tron for the Chinese market underscores the importance of localized strategies in EV adoption.
The falling cost of lithium-ion batteries and breakthroughs in solid-state and nuclear battery technologies drive competition and innovation in energy storage. The advancements of SSB technology in automotive industry is critical for improving EV performance and reducing costs.
Nissan believes all-solid-state batteries can be reduced to $75 per kWh in fiscal 2028 and to $65 per kWh thereafter, placing EVs at the same cost level as gasoline-powered vehicles.
Ilikaโs shipment of prototype Goliath solid-state batteries to an automotive customer marks progress in battery energy density and safety. Expected to enter the market by 2025, these batteries promise significant efficiency gains.
Solutions like Toyotaโs flex-fuel hybrids and MANโs methanol retrofits offer transitional pathways to sustainability by diversifying powertrain options, catering to markets where full electrification faces infrastructure or cost barriers.
Toyota’s Hybrid-Flex Strategy in Brazil: Toyotaโs $2.2 billion investment in flex-fuel hybrids underscores its commitment to region-specific solutions. Hybrid-flex vehicles that run on ethanol or gasoline are tailored for Brazilโs energy landscape, balancing electrification with fuel flexibility.
Methanol Retrofits for Commercial Vehicles: MAN PrimeServโs methanol retrofit packages for diesel engines represent a step toward alternative fuels. By enabling dual-fuel operations, this innovation caters to commercial fleets looking for sustainable solutions.
Toyota: The Mirai, already in its second generation, will receive updates in 2025 to improve range and performance.
Hyundai: The NEXO SUV continues to lead the hydrogen passenger car segment, with the next generation expected in 2025.
BMW: The companyโs iX5 Hydrogen SUV will move beyond pilot testing to limited production.
Chinese Automakers: Companies like Great Wall Motors and Geely are expected to enter the hydrogen market with affordable FCEVs.
Nikola Motors plans to launch its Tre FCEV in the U.S. and Europe.
Hydrogen-powered buses from Toyota, Ballard, and Van Hool will be deployed across urban transit systems in Europe and Asia.
Volvo and Tesla Superchargers: Volvoโs integration with Teslaโs North American Charging Standard (NACS) provides access to over 17,800 Tesla Supercharger stations. Starting with the 2025 model year, Volvoโs EX90 flagship will ship with NACS adapters.
Volkswagen and Electrify America: Volkswagenโs partnership ensures three years of discounted charging for ID. Buzz customers.
Cross-Adoption of NACS: Automakers like Toyota, BMW, and Mazda are aligning with Teslaโs NACS, creating a unified standard in North America to simplify charging for consumers.
The EU plans to add 1,000 hydrogen refueling stations as part of its hydrogen roadmap, with Germany and France leading deployment.
United States: California is targeting 200 hydrogen refueling stations by 2025, with expansion plans in other states like Texas and New York.
The expansion of green hydrogen production and refueling infrastructure could accelerate the adoption of new technology in the automotive industry, particularly in regions focused on sustainability.
By 2025, new technology in the automotive industry will include AI hardware and software for Level 4-Autonomous driving, intelligent cockpits, electrification.
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Auto2x is a London-based market research firm specializing in the automotive sector. We deliver in-depth insights and analysis on industry trends, emerging technologies, and market dynamics, helping businesses stay ahead in the evolving automotive landscape.