CES may be over, but this year’s show has told us a lot about the state of the auto industry in 2025? It looks set to be a year of mixed momentum, strategic recalibration and critical introspection.
Automakers take a back seat
This year saw less involvement by some of the world’s leading automotive brands.
While Honda introduced its Asimo OS, signalling a deeper commitment to software-driven enhancements, and Toyota launched the first phase of its living laboratory ‘Woven City’, the reduced presence of traditional American and European automakers on the show floor was noticeable. On the other hand, Chinese brands like Zeekr, Wey and Xpeng all had booths at Las Vegas, highlighting their ambition to tap into new markets.
Meanwhile, sectors like agriculture and trucking grabbed the spotlight, showcasing just how advanced their autonomous technologies are compared to that of the auto industry. John Deere’s second-generation autonomy kits, for instance, demonstrated they can handle every tractor task required.
Having long been the face of innovation, will legacy automotive brands need to play catch-up in 2025? With EV tariffs and shifting global regulations looming, these uncertainties could further complicate an already complex environment for automakers, requiring a more strategic approach to both policy and innovation.
Focusing on the fundamentals
Innovation is at the heart of CES and this year was no different. However, alongside the discussions about AI and new technologies there was also a return to the fundamental solutions needed to power the software-defined vehicle. Volvo’s keynote highlighted this, prioritising safety, sustainability and seamless driving experiences as essential.
2025 presents an opportunity for automakers to double down on these foundational elements, enhancing core aspects of the driving experience that will resonate deeply with consumers. These, in turn, will enable automakers to drive the innovation they desire. Seamless connectivity, for example, underpins many of the user experiences consumers demand – whether it’s real-time navigation, advanced safety alerts or over-the-air (OTA) updates.
Automakers should also focus on integrating AI and machine learning not just for autonomy but to personalise and enhance the overall driving experience. This includes features like predictive maintenance, energy-efficient routing and tailored infotainment options.
Building on CES
CES 2025 was a reminder of the dynamism of the competitive landscape. In a year where the industry is set to grapple with many regulatory pressures and technical challenges, now, more than ever, keeping what the consumer wants front of mind will determine success.
Safety, security, sustainability and seamless connectivity are key concerns for car users. As the dust settles on CES, those automakers that prioritise them will ensure their place at the forefront of innovation.
Could ‘less showmanship, more substance’ be the mantra for the year ahead?
