What is the size of Connected Car Market in India | Industry Trends & Forecast 2026

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Code: MTA10974

Publication Date: Nov 2025

What is the growth rate of the India Connected Car Market?

According to 6Wresearch internal database and industry insights, the India Connected Car Market is expected to grow at a CAGR of 11.48% during 2026-2032F.

The main factors contributing to this growth are the increasing need for in-vehicle connectivity solutions for telematics and infotainment, the increasing implementation of 4G/5G infrastructure enabling consistent communication between vehicles, and the increasing fleet with connected services in passenger and commercial vehicles.

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Growth Factors for India Connected Car Industry

Rapid development of high-speed mobile broadband networks for more immersive in-vehicle data services.
Regulatory frameworks and safety requirements mandating telematics and tracking capabilities in new vehicles.
Growth of ride-hailing and fleet operations that require connected vehicle management.
Advancements in vehicle-to-infrastructure and vehicle-to-vehicle communication are leading to enhanced mobility services.
Increasing consumer expectation of the smart-vehicle experience, including remote diagnostics and infotainment.

India Connected Car Market Trends

The India Connected Car Market appears to be experiencing trends, including a transition from basic navigation and infotainment towards a much more comprehensive connected ecosystem that includes things like over-the-air software updates, cloud-based vehicle connections, and predictive maintenance. OEMs are introducing more embedded connectivity modules across all vehicle segments as in-car app-based features and subscription services become commonplace. At the same time, regional telecom partnerships and smart‑city initiatives are supporting the development of connected vehicle ecosystems.

Emerging Developments in the India Connected Car Market

The India Connected Car Market is experiencing developments like localisation of telematics hardware and software platforms to reduce cost and increase scale, investment by automotive-tech alliances in connected services and data monetisation, and uptick in aftermarket telematics retrofit solutions for older vehicle fleets. Additionally, commercial vehicles and logistics operators are deploying fleet-connectivity solutions to optimise operations and reduce downtime, signalling widening of the connected market beyond passenger cars.