India’s Connected Vehicle Technology Booms in Q1 2023 with Impressive Growth in EV Market

India’s connected vehicle (CV) technology has seen remarkable growth of over 60 per cent YoY in the first quarter of 2023, with the electric vehicle (EV) market witnessing an astounding 48 per cent YoY growth, according to a report by CMR, a leading market research firm. The data further revealed that the connected 2-wheeler (C2W) vehicles experienced a growth of approximately 92 per cent YoY, with market share almost reaching 60 per cent. Additionally, the electric 2-wheeler (E2W) market increased by 44 per cent YoY, while the electric 3-wheeler (E3W) market grew steadily and covered around 50 per cent share within the segment.

Growing Consumer Awareness for Connected Vehicle Technologies

John Martin, senior analyst of CMR’s smart mobility practice, mentioned that there is a rising awareness among consumers regarding the benefits of connected vehicle technologies. For instance, the use of connected vehicle technology has consistently increased its footprint in the industry, and its adoption is growing at a considerable pace. Moreover, the advanced driver-assistance system (ADAS) saw a 50 per cent YoY growth in Q1 2023, with 70 per cent of vehicles featuring Level 2 autonomy.

Increase in the Electric Passenger Vehicle (EPV) Segment

The EPV segment showed a remarkable growth of over 114 per cent YoY in Q1 in India. The connected features in the passenger vehicle (PV) segment have been grabbing the market with a growth rate of 56 per cent, of which 58 per cent of the connected passenger vehicle (CPV) market share is driven by conventional powertrains.

The Future of Connected and Software-Driven Vehicles

According to Martin, the EV market share in India is expected to surpass 24 per cent by Q1 2025, and connected vehicles are projected to account for over 30 per cent of the market. Furthermore, he added that by 2025-26, connected and software-driven vehicles would be key revenue drivers for the automotive industry.


The increase in the adoption of connected vehicle technologies in India reflects the evolving needs and demands of consumers for safer, more efficient, and convenient driving experiences. With the EV market showing a considerable increase in growth, the future looks promising for connected and software-driven vehicles. It is high time that automakers and stakeholders take the necessary steps to tap into this emerging market, which is expected to provide significant opportunities for innovation and growth.

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