Archive · 29 Oct 2025
AI and Connected Cars: Reshaping the Future of Automotive Value
Imagine your car is no longer just a car, but more like a smart device on wheels.
Normally, when you buy a car, its value is set.
But with new technology, cars are getting smarter using something called Artificial Intelligence (AI).
These cars collect lots of information, like how you drive or if your car parts are getting worn out.
AI uses this information to offer you special things, like heated seats in winter or better driving aids.
This means your car can get better over time with updates sent wirelessly, just like your phone.
This also helps car companies know what you like and offer you personalized services.
It's like the car is learning about you and becoming your helper.
India is in a good position to lead this change because many people use smartphones and have good internet.
This makes cars that can 'think' and adapt very important for the future.
Connected car technologies, powered by AI, are transforming vehicles into platforms for continuous engagement and recurring revenue.
AI converts vast amounts of vehicle data into insights, enabling personalized offers and feature subscriptions.
Over-the-air (OTA) updates driven by AI allow for rapid, seamless vehicle improvements based on real-world usage.
Hyper-personalization and predictive maintenance are enhancing customer loyalty and safety.
India is identified as a potential leader in this AI-driven automotive transformation due to its digital infrastructure and population.
- Who
- Automotive industry, specifically automakers and technology providers
- What
- Shifting vehicle value from the initial sale to ongoing services and personalization through AI-powered connected car technologies
- When
- Currently and projecting towards 2030
- Where
- Globally, with a specific focus on India's potential to lead the transformation
- Why
- To create new revenue streams, enhance customer loyalty, enable continuous innovation, and personalize the driving experience
- Data Generated Per Hour
- Upwards of 25 GB
- Software's Contribution to Vehicle Value (2030 Estimate)
- 4-5%
- Current Software's Contribution to Vehicle Value
- Around 2%
- Key Technologies Enabling Transformation
- AI, Telematics, Over-the-Air (OTA) updates
- Author's Affiliation
- Regional Vice President, Salesforce