Internet of Things (IoT) and real-time monitoring solutions improve shipment tracking, warehouse oversight, and production visibility. In addition, it offers charging solutions for e-bikes, including wallboxes and mass-charging systems for hotels and public spaces, thereby broadening access to sustainable transport. Czech Republic-based startup IONT tech manufactures EV charging stations that support home, business, and public use.
Vehicle purchases shift online
It offers more sustainable 3D printing by developing its own large-scale printing hardware and using fully recycled composite materials. DAM can print parts as large as 1000x3000x1000mm using engineering-grade recycled plastics. Firstly, it accelerates the design and testing process through rapid prototyping. Below, you get to meet 20 out of these 4859 promising startups & scaleups as well as the solutions they develop. These 20 automotive companies are hand-picked based on criteria such as founding year, location, funding raised & more. As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.
Evolving video marketing & environmental sustainability
These vehicles improve public transport safety by reducing accidents caused by human error. LiDAR sensors enable precise 3D mapping, crucial for vehicle navigation and obstacle detection. AI algorithms process vast data from sensors and cameras, enhancing decision-making for safe, efficient driving. French startup Airnity provides a cellular connectivity platform for the automotive industry to enhance connected car operations.
Autonomous vehicles change the face of the auto industry
By 2025, the sector is expected to experience continued technological advances, heightened sustainability efforts, and shifting market dynamics. In this article, we’ll explore the significant focuses of the automotive industry in 2025, ranging from electric mobility to autonomous driving and sustainability initiatives. In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations.
Advanced Driver Assistance Systems (ADAS)
By focusing on digital transformation, the company aims to integrate predictive analytics and process automation, creating production systems that are adaptable and resilient. Despite initial scepticism, the automotive industry is embracing enhanced connectivity by enabling real-time updates and post-production feature additions. Through our work with automotive innovators, we witness first-hand how rapidly this sector is evolving. From electrification and software integration to new mobility models, the industry faces unprecedented change. Norwegian startup Chargerly designs vehicle-to-building (V2B) solutions that integrate EVs with building energy systems to improve resilience, efficiency, and sustainability.
Luxury Car Brands See Growth
Also, adoption rises quickly, with China reaching 50% EV penetration in 2024, and in India, over 18.8 lakh EVs are supported under FAME schemes till June 2025 by the government. Declining battery costs move EVs closer to price parity with combustion vehicles. Sales of the most expensive cars are predicted to drive the most market growth through 2031.
Cyber security in the automotive industry
The automotive manufacturing industry is evolving rapidly as manufacturers respond to technological advancements, consumer preferences, and regulatory changes. With established automakers facing nimble startups in the mobility race, building new businesses should be a priority for auto executives. Data-driven connectivity services and on-demand mobility will add up to $1.5 trillion to the automotive revenue pool by the year 2030. Electrification and autonomous vehicles will remain megatrends, transforming the sector and forcing automakers, suppliers, and dealers to adapt to new technologies and business methods. The new year will also witness L4 implementation, with companies like Baidu, Pony.ai, and WeRide conducting extensive road tests across various cities. Initiatives and support from the Chinese government, such as pilot zones and regulatory frameworks, are further accelerating the process.
a. Urban Mobility and Shared Vehicles
- Advanced systems that power, control, and optimize automobiles are increasingly being built around tiny chips.
- Digital twins validate updates virtually, with Stellantis using virtual engineering workbenches to test thousands of scenarios before rollout.
- They are focusing on lightweight materials and improved energy recovery efficiency.
- Senegal-based startup Kemet Automotive manufactures all-terrain electric vehicles (EVs) designed for the road conditions.
- Sensor fusion drives the automotive industry’s shift to autonomy by integrating data from cameras, light detection and ranging (LiDAR), radar, and ultrasonic sensors into a unified perception system.
- In 2025, the focus will be enhancing ADAS features, such as adaptive cruise control, lane-keeping assistance, automatic emergency braking, and more.
- Semiconductor experts say manufacturers won’t see a return on investment if they build new foundries to meet the auto industry’s demand.
- Swedish startup Volta Trucks makes Volta Zero, an electric truck for urban deliveries.
Efforts to article on tech revolution in car industry adopt circular economy practices are intensifying, with manufacturers exploring innovative ways to extend the lifecycle of materials and reduce waste. Michelin’s development of tyres composed of 45% sustainable materials is a noteworthy example of how companies are rethinking material usage to minimise their environmental footprint. As we reflect on 2024, it’s clear that this year was a turning point for automotive manufacturing. The strides made in EV battery innovation, renewable energy adoption, and sustainability are paving the way for a more resilient and forward-thinking industry.
(c) 2025 Automotive Manufacturing Solutions
- Monitoring and understanding these trends are critical for automakers and other stakeholders to stay ahead of their competitors.
- By the end of that decade, it’s predicted that over 30% of the cars on the road will be EVs.
- German startup CARNIQ Technologies enhances vehicle cybersecurity through web-based and AI-powered tools that ensure compliance with automotive standards.
- It enhances safety via driver-assist features and promises to revolutionize mobility with robotaxis and freight automation.
- Notably, China, Europe, and the US have established themselves as the leading EV markets, with other countries following suit.
- Given the opportunity to significantly disrupt private transport and shape the future of the automotive industry, companies are expected to continue investing in autonomous vehicles in 2025.
Automakers reduce reliance on distant suppliers as trade tensions and conflicts expose the fragility of global networks. Also, advanced battery management systems improve safety, extend battery life, and optimize performance. Automakers integrate these systems to offer more reliable vehicles across global markets. In 2024, EV sales reached 17 million units, accounting for over 20% of global new car sales. Also, the EV market is projected to reach USD 6.16 trillion by 2035 at a CAGR of 25.32%. Autonomous driving demonstrates scalable deployment across passenger and freight use cases, and subscription models give consumers flexible access to vehicles.
Chargerly develops Vehicle-to-Building Solutions
The charging infrastructure is more vulnerable as a result of the quick uptake of EVs, which hackers may attack to obtain customer information or interfere with services. Advances in solid-state batteries promise higher energy density and faster charging times, while the expansion of ultra-fast chargers addresses key barriers to EV adoption. With the growing popularity of bidirectional charging (V2G) technology, EVs now contribute energy to the grid to improve stability. Volkswagen’s Traton Group, recognising the urgency of addressing these bottlenecks, is planning a third battery assembly plant in Europe.
Transparency rules such as the EU’s Corporate Sustainability Due Diligence Directive and the US Uyghur Forced Labor Act add pressure for stricter supplier oversight. This transition offers shorter lead times, reduced tariff exposure, and a stronger crisis response. The startup employs the Perceived Quality Index to eliminate engineering bias by translating customer insights into measurable quality improvements. Cost savings also play a role, as recycled aluminum or bioplastics often return their investment in just over a year.
Top 10 Global Automotive Industry Trends in 2025
Hybrid vehicles are becoming increasingly popular—they combine electric power with the reliability of a combustion engine. Compared to EVs, they don’t require charging, but at the same time reduce carbon emissions. However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040. Consumer trends in the automotive industry reveal that short videos are more effective than text in converting leads into customers in the automotive industry. Dealerships can take advantage of various videos, such as how-to videos, car highlights, and customer testimonials. The modernized vehicles available in the market have opened an opportunity for the firms that supply and also manufacture the parts.
Top 8 Automotive Manufacturing Trends Shaping the Future of 2025
- Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint.
- EVs typically use 2-3 times more semiconductor content than internal combustion engine models, and in powertrain-specific components, that multiplier is possibly higher.
- Just days ago, Jaguar unveiled their new concept car, the Jaguar Type 00, a fully electric, futuristic vehicle that marks a departure from every other car the brand has produced.
- Expect more biodegradable components, renewable energy-powered factories, and battery recycling programs.
- Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability.
- Top car brands and dealerships are embracing VR as part of their dealership photography strategies to improve the customer experience.
There are already over 30 million vehicles on the road that meet the Level 1 standard. Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades. Even with this rapid growth, EV’s share of cars on the road is expected to remain at just 8% by 2030. Sales for BEV and PHEV in Europe increased by 137% in 2020 compared with the previous year (despite a 20% year-over-year decrease in the total car market). Espite growing inventory levels, new vehicle prices continue to rise, reaching a record average transaction price of $49,507 in December 2022.
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94 percent of global automakers are using ARM-based technology for automotive applications, alongside the top 15 automotive semiconductor suppliers in the world adopting ARM technologies in their silicon. Car companies plan to integrate powertrain components in the next five to ten years by combining onboard chargers with batteries. Tesla already employs single inverter housings across its models, offering efficient integration of power electronics. This shift is driven by the growing need for more efficient power management in electric vehicles, resulting in smarter and more streamlined EV designs.
Senegal-based startup Kemet Automotive manufactures all-terrain electric vehicles (EVs) designed for the road conditions. It builds connected EV models that operate reliably on diverse terrains and promotes sustainable mobility solutions for the region. The present-day automotive industry is affected by innovative ideas and is ready to transform and evolve rapidly. Current automotive trends are encouraging automotive manufacturers to offer consumers much more than a metal box on four wheels.
- As for those who already use micromobility vehicles, 32% say they often or very often use it instead of a private car.
- Connected cars are equipped with cutting-edge technology that allows them to connect to the Internet, other vehicles, and external software.
- Further, Chipv creates power control chips equipped with triple RISC-V cores, extensive on-chip memory, and robust hardware security modules.
- The automotive ecosystem will become more interconnected, paving the way for smart cities and mobility-as-a-service (MaaS).
- US-based startup TeraDAR designs its 4D imaging sensor that enhances sensor fusion by offering the Terahertz wavelength for vehicle perception.
- Governments also enforce stricter safety standards, pushing automakers to integrate advanced sensor systems.
- Using data from IoT technology, drivers receive real-time route suggestions to avoid traffic jams and ease congestion, ensuring faster, stress-free travel.
- Experts anticipate a rise in digital advertising spending, driven by the growing mobile and social media usage rates.
- 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.
- Moreover, the startup installs Tesla motors and Fellten battery systems, which provide up to 295 horsepower, enable flexible range options, and ensure authenticity through fully reversible conversions.
- Usage-based insurance (UBI) models use driving behavior data to provide customized premiums and are gaining popularity.
- Recycling initiatives, such as reusing EV batteries, further emphasize the industry’s shift toward circular manufacturing.
- From encrypted communications to intrusion detection systems, cybersecurity advancements will ensure consumer trust as vehicles become smarter and more networked.
- The US-based startup Launch Mobility develops a platform for a range of shared mobility solutions.
- One such order significantly impacts the future of EVs and EV infrastructure by rolling back policies that once supported their growth.
- From 2024 to 2029, the insurance telematics industry is projected to grow at a CAGR of 17.6%.
It integrates templates, examples, and practices aligned with ISO/SAE 21434, Automotive SPICE for Cybersecurity, and VDA guidelines. Similarly, hardware security modules (HSMs) protect encryption keys and authenticate critical functions, with secure microcontrollers embedded into electronic control units (ECUs). Additionally, Motoreto streamlines operations with features such as multi-channel publishing, branded digital tools, and integrated logistics and financing. It produces alternating current (AC) wallboxes for residential charging up to 22 kW and AC column stations for companies and municipalities. It also manufactures direct current (DC) fast chargers with capacities of up to 240 kW. Vehicle-to-grid solutions convert EVs into mobile energy storage units by allowing bidirectional energy flow with the grid.
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The startup’s product range includes residential wallboxes from 7 to 22 kW and commercial chargers up to 132 kW. These units support CCS2 and CHAdeMO standards, ensuring broad adaptability across EV models. For example, Qualcomm released reports and white papers highlighting C-V2X as a critical capability for intelligent transportation systems. They also emphasize that regulatory support and infrastructure readiness are essential for large-scale deployment.
This makes sense, as 83% of car customers already said they wish they could save time by shopping online. This number is expected to have risen in 2020 as dealers everywhere turned to digital channels. As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system. In addition, TuSimple has partnered with Navistar and UPS to test its software under supervised driving conditions.