• Your Notifications are Empty

    Browse our plans and add your selections to get started.

  • search-icon
  • hamburger-icon

Everything You Need to Know About Connected Cars

  • Motor Blog

  • 07 Jul 2025

  • 50 Viewed

Contents

  • What is a Connected Car?
  • How Do Connected Cars Work?
  • Key Features of Connected Vehicles
  • Benefits of Connected Cars
  • Types of Connectivity in Cars (V2V, V2I, V2X)
  • List of Connected Car Models in India
  • Impact of Connected Cars on Car Insurance
  • Bajaj Allianz Smart Solutions for Connected Cars
  • Future Trends in Connected Vehicles
  • Conclusion
  • FAQs

The Indian automotive landscape is evolving rapidly, with connected cars emerging as a transformative trend. These vehicles, integrated with internet-based technology, offer an elevated driving experience by enabling real-time communication between the car, driver, and surroundings.
From remote diagnostics to infotainment and safety alerts, connected vehicles ensure greater convenience and control. As the industry progresses, insurers like Bajaj Allianz General Insurance Company are also offering tailored motor insurance solutions to support the growing ecosystem of connected mobility.

What is a Connected Car?

A connected car is a vehicle equipped with internet access and communication technologies that allow it to interact with other systems, both inside and outside the vehicle. It uses embedded software and sensors to gather data, connect to smartphones, and interact with infrastructure or other vehicles. These cars provide services like navigation, diagnostics, safety updates, and entertainment, offering a smarter and more responsive driving experience.

How Do Connected Cars Work?

Connected cars operate through embedded telematics units that combine hardware, software, and connectivity modules. These units link the vehicle to the internet using cellular networks, allowing it to send and receive data in real-time.
The system collects data from various sensors, enabling services such as GPS navigation, emergency assistance, remote monitoring, and vehicle health diagnostics. It can also sync with smartphones for hands-free operations and access to apps. The car’s Electronic Control Unit (ECU) processes all the data to ensure safety, performance, and user convenience.

Key Features of Connected Vehicles

  • Internet Connectivity: Real-time internet access enables infotainment, traffic updates, and seamless navigation.
  • Remote Diagnostics: Detects issues early by monitoring the vehicle’s health and sending alerts to the driver or manufacturer.
  • Over-the-Air (OTA) Updates: Software upgrades can be installed remotely without visiting a service centre.
  • Advanced Navigation: Provides live traffic data, alternate routes, and destination suggestions using GPS and cloud connectivity.
  • In-Car Voice Assistants: Hands-free control over music, calls, climate, and navigation using AI voice commands.
  • Vehicle Tracking & Anti-Theft: GPS-based tracking systems enhance security by allowing remote location access.
  • Driving Behaviour Monitoring: Analyses driver habits to suggest improvements and improve road safety.
  • Emergency Assistance: Automatically alerts emergency services in the event of an accident.
  • Smartphone Integration: Connects with mobile devices to control functions like air-conditioning, windows, and locks.
  • Entertainment & Apps: Access to music, podcasts, and other digital content for passenger engagement.

Also Read: Teflon Coatings on Cars

Benefits of Connected Cars

  • Enhanced Safety: Immediate alerts and auto-emergency response during mishaps.
  • Improved Navigation: Real-time traffic and road updates for efficient travel.
  • Predictive Maintenance: Proactive detection of potential issues to avoid breakdowns.
  • Fuel Efficiency: Analyses driving behaviour to suggest fuel-saving tips.

Types of Connectivity in Cars (V2V, V2I, V2X)

Vehicle-to-Vehicle (V2V)

Enables vehicles to communicate directly with each other, sharing data on speed, location, and direction. This reduces the risk of collisions and helps maintain safe distances.

Vehicle-to-Infrastructure (V2I) 

Cars interact with road infrastructure like traffic lights, toll booths, and road signs. V2I helps manage traffic flow and informs drivers about road conditions or signal timings.

Vehicle-to-Everything (V2X)

An umbrella term that includes V2V, V2I, and V2P (Vehicle-to-Pedestrian), V2N (Vehicle-to-Network), etc. V2X enhances overall traffic management, road safety, and environmental efficiency.

Vehicle-to-Pedestrian (V2P)

Vehicles can detect pedestrians via smartphones or wearable devices, reducing accidents in crowded urban areas.

Vehicle-to-Network (V2N)

Provides real-time access to cloud-based services such as navigation, entertainment, or weather updates via mobile networks.

List of Connected Car Models in India

Car Model

Manufacturer

Connectivity Features

Hyundai Creta

Hyundai

Bluelink, remote start, SOS alerts

MG Hector

MG Motor

i-Smart system, voice assist, OTA

Tata Nexon EV

Tata Motors

ZConnect, live tracking, geo-fencing

Kia Seltos

Kia

UVO connect, smart alerts, remote ops

Mahindra XUV700

Mahindra

AdrenoX, Alexa integration, OTA

 

Impact of Connected Cars on Car Insurance

Connected vehicles allow insurers to collect data on driving habits, usage patterns, and vehicle health. This enables usage-based insurance (UBI) models, where premiums are calculated based on actual vehicle usage and driving behaviour. Motor Insurance by Bajaj Allianz General Insurance Company can thus offer dynamic and personalised coverage at 7,200+ cashless garages across India.

Bajaj Allianz Smart Solutions for Connected Cars

Bajaj Allianz General Insurance Company has embraced the future of automotive mobility with smart solutions for connected vehicles. Their offerings include usage-based insurance plans, real-time claim support, and emergency roadside assistance integrated with connected car platforms. The company also provides mobile app features that allow policyholders to track driving behaviour, monitor vehicle health, and instantly access policy details. With a focus on innovation, Bajaj Allianz ensures that owners of connected cars enjoy not just enhanced protection but a holistic, digitally-driven experience. 

Future Trends in Connected Vehicles

The future of connected cars in India looks promising with the integration of 5G connectivity, enabling ultra-fast data transmission for real-time responses. AI-powered in-car assistants are evolving to provide predictive suggestions, enhancing driver convenience. Cybersecurity advancements are also gaining traction to protect vehicle data. Moreover, integration with smart cities will allow seamless traffic management, parking solutions, and environmental monitoring. As connected tech matures, expect more collaborations between automakers, tech giants, and insurers

Also Read: What is Handbrake in Cars and How to Use It?

Conclusion

Connected cars are redefining the future of mobility by blending technology with transportation. From improved safety and real-time insights to enhanced insurance options and entertainment, they offer a holistic driving experience. As this technology continues to mature in India, both automakers and insurance providers are working hand-in-hand to unlock its full potential.

FAQs

What is the purpose of IoT in connected car technology?

It allows cars to collect, analyse, and share data in real-time, improving safety, maintenance, and user convenience.

Is an automated vehicle an example of a connected car?

Not necessarily. While automated vehicles may be connected, a connected car focuses more on communication features than autonomous driving.

What is the concept of connected cars?

Connected cars are vehicles integrated with the internet and communication technology, allowing them to interact with external systems and devices.

What are the disadvantages of connected cars?

Challenges include high costs, data privacy concerns, and potential cybersecurity vulnerabilities.

How does a connected car help during an emergency?

It can automatically alert emergency services, share GPS coordinates, and provide vehicle diagnostics for timely assistance.

What is the IoT in connected car technology?

It refers to the system of sensors and internet-connected devices that collect and transmit data to enhance vehicle performance and user experience.

What is the difference between automated and connected vehicles?

Automated vehicles focus on self-driving features, while connected vehicles prioritise internet-based communication and real-time data sharing.

*Standard T&C apply

**Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

****Disclaimer: Vehicle specifications, features, and pricing may vary, and it is essential for readers to verify the latest information from authorised dealerships, manufacturers, or reliable sources before making any purchasing decisions.

Go Digital

Download Caringly Yours App!

  • appstore
  • playstore
godigi-bg-img