Amidst global economic volatility, rising geopolitical tensions, and the urgent call for climate action, mobility is being redefined in fundamental ways.
Illustration: Chaitanya Dinesh Surpur
The global automotive industry stands at a pivotal moment. After over a century of incremental evolution, we are now witnessing a true revolution—one that is reshaping not only the technologies that power mobility, but also the very way in which it is conceived, delivered and experienced. Amidst global economic volatility, rising geopolitical tensions, and the urgent call for climate action, mobility is being redefined in fundamental ways. What once ran smoothly on horsepower, steel and combustion is now being dismantled and rewired for a future that demands silence, sustainability and sentience.
Five Forces Reshaping Mobility
The automotive sector is being transformed by five converging forces: Electrification, digitalisation, sustainability, autonomous technologies and new business models. Traditional automotive hubs in industrialised economies face stagnanting demand, regulatory headwinds and market saturation. Meanwhile, emerging markets offer fertile ground for innovation and growth.
Fast-Tracking EVs
Sustainability has moved to the forefront of the global agenda. Governments, businesses and consumers view clean mobility as a necessity. Electric vehicles (EVs) are central to this shift, with countries implementing stricter emissions norms, carbon pricing mechanisms and EV adoption targets. Global EV sales exceeded 14 million units in 2023, from 2.2 million in 2019, representing nearly 18 percent of total car sales, according to the IEA Global EV Outlook 2024. The future of transport is being built around low-emission, energy-efficient platforms, and the race is on to scale production, infrastructure and innovation in this space.
Digitalisation as a Catalyst
Equally transformative is the digitalisation of mobility. Today’s consumers expect vehicles that are connected, intelligent and seamlessly integrated with their digital lives. In response, software has emerged as a decisive differentiator in the automotive industry. The competitive edge no longer lies solely in mechanical engineering, but in delivering rich, software-defined experiences.Technologies once considered futuristic—such as Advanced Driver Assistance Systems—are becoming mainstream. Consumers are increasingly embracing features like adaptive cruise control, lane-keeping assistance and automatic emergency braking. By 2030, software is expected to account for up to 30 percent of a vehicle’s value, up from 10 percent in 2020, according to McKinsey & Co. As these technologies mature, they will redefine safety standards and revolutionise the way mobility services are delivered and consumed.
Also read: Automotive innovation led by electrification, digitisation, hyper-personalisation: Santosh Iyer
(This story appears in the 30 May, 2025 issue
of Forbes India. To visit our Archives, click here.)