Auto and Mobility

AIdea 2025 report - Industries in transformation: Auto and Mobility 

Authors

  • Vinay Raghunath

    EY India Consulting AMI Leader

  • Neel Goyal

    EY India Business Consulting Leader for Advanced Manufacturing, Mobility & Infrastructure (AMI); EY India Sector Leader for Diversified Industrial Products (DIP)

5 minute read 14 Jan 2025
Related topics
Automotive retail transformation
AI
Technology
Digital
Consulting
  • GenAI is transforming the sector across design, manufacturing, autonomous driving, and customer engagement, enabling a shift from product-centric to service-oriented models
  • Innovative business models, including ride-sharing and fleet management are emerging, helping organizations transition to sustainable, service-driven operations
  • Indian auto majors and startups are leading the charge in GenAI innovation leveraging technology to streamline processes and enhance customer experience
  • GenAI is projected to enhance productivity by 30%–32% by 2030 across key roles in this sector

GenAI is reshaping the automotive and mobility sector, driving innovation across the value chain in a sector traditionally defined by mechanical innovation. The advent of this technology has necessitated a re-evaluation of long-standing practices, leading to advancements in manufacturing, system engineering and customer experiences. Key areas where GenAI is making an impact include product development, process optimization, testing and validation, customer engagement, automated driving and sustainability initiatives. Advanced technologies like autonomous driving and real-time analytics, are central to this evolution, reshaping the industry’s landscape. Emerging business models like ride-sharing and MaaS optimize fleet management and ride-matching while facilitating the industry’s transition from product-based to service-centric approaches. The evolution of autonomous vehicle (AV) technology is accelerating with the emergence of AV 2.0, defined by unified AI models capable of handling vehicle operations such as perception, planning and control.

GenAI impact on productivity across automobile value chain

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