EV Trends for OEMs and Dealerships to Catch-Up in 2025

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Electric Vehicle Trends

Given the massive shift in the automotive industry, 2026 is predicted to showcase a peak in EV adoption. By 2030, one in four-passenger cars will be electric, and OEMs will recycle more than 95% of batteries from electric vehicles. According to major vehicle manufacturers worldwide, this is the end of an era when internal combustion engines are rapidly being replaced by zero-emission vehicles (ZEV).

According to Gartner research, more than 85 million electric vehicles, including cars, buses, scooters, and vans, are expected to be on the road by the end of 2025. Despite the rapidly growing choices that EV consumers have, the industry still needs to keep up with the growing trends. Let us look at some of the upcoming trends in the electric vehicle industry in 2025 and 2026.

Upcoming Battery Technology

Battery technology for the EV industry will be the first to witness rapid transition due to the current challenges that OEMs are battling. These challenges include the constant anxiety associated with range, reduced charging time, restrictions on driving to longer distances, and the constant effort to reduce cost.

Solid-state batteries are becoming more popular among EV manufacturers due to their potential to increase range and reduce the risk of handling lithium-ion batteries. Lithium-iron-phosphate batteries are gaining more popularity due to their affordability, and increased safety.

Battery trends hold the utmost importance in the EV industry due to the affordability factor which is directly affected this further enables a wider range of audience to have access to EVs. In the coming years, more EV manufacturers will strategically partner with battery manufacturers to stay relevant in the industry.

Over-The-Air (OTA) Software Updation

Over-the-air software updation or OTA was first introduced into the automotive market by the leading automotive giant Tesla. Ever since the rest of the OEMs transitioning from ICE to EV are slowly adopting this feature to make software updates, fixing bugs, and increasing safety more convenient.

Ever since Tesla introduced OTA, it has increased the demands of consumers, further making OEMs invest in their technology. In the long run, dealerships will be adjusting to more software-centric repairs, maintenance, and updates with the increase in software-defined vehicles or SDVs.

This drastic change will constantly evolve within the EV industry while the players adapt to new changes that come along.

EVs Will Become More Affordable

Batteries make up about 40% of the total cost of an EV, and in the coming years battery technology will take a new path to make the model more sustainable for longer range and safer compared to previous models. The reliance of lithium batteries on earth metals makes it limited and hard to get.

OEMs and automotive manufacturers are coming up with better recycling infrastructure and investing in EVs that are powered by renewable resources which will gradually reduce the cost of batteries. This dip in the price of EV batteries will reduce the overall cost of EVs, making it an affordable choice for the larger public thus having more EVs on the road.

By the year 2050, EV sales are expected to reach 700 million which will eventually lead to a more sustainable future. Although automotive giants such as Tesla and BYD are leading the EV market, multiple Chinese automakers are gradually coming forward and are expected to compete with other European automakers such as BMW and Volkswagen.

Transparent Sustainability Practices

In September 2024, more than 1.552 million EVs were sold globally including battery electrical vehicles (BEV), range extender generator vehicles (REEVs), and EVs that weigh less than 3.5 tons or e-mobility vehicles. As the world is moving towards a sustainable future, shifting to more efficient options that minimize carbon emissions will become a necessity.

OEMs will be partnering with energy companies that will contribute to a better future and utilize renewable sources of energy. OEMs will embrace this factor in the coming years to educate people about moving to a sustainable future by transitioning to a zero-emission vehicle for fulfilling their daily travel needs.

Vehicle-to-Grid Technology

To reduce the carbon emissions caused due to the growing number of vehicles on the road, EV manufacturers have come up with the V2G solution. Vehicle-to-grid, commonly termed V2G is an efficient technology that charges a grid with the renewable energy produced by an EV. Renewable energy resources such as wind and solar energy cannot be directly stored like fossil fuels.

V2G technology allows energy from EV batteries produced through renewable sources of energy can be pushed back to the grid. V2G technology will be opening new streams of revenue for existing as well as upcoming EV OEMs as the world is moving towards a sustainable future. In the upcoming years, vehicle-to-grid technology will enable OEMs to make the best use of the number of EVs on the road.

Upcoming Charging Infrastructure

A rapid increase in EV charging infrastructure is anticipated in the coming years, which will further change the automotive industry’s structure. Despite the rapid growth of charging infrastructure, EV OEMs are still tackling certain gaps.

In the upcoming year, EV infrastructure will be channeling their funds into developing technology that supports fast charging. These ultra-charging stations will enable consumers to charge up to 80% within minutes. OEMs will gradually partner with energy providers and infrastructure companies to combat this challenge.

Emerging Technologies

The EV industry will be strongly influenced by emerging technology such as Artificial Intelligence (AI). Machine learning which is a subset of AI, can assess the driver’s behavior and pattern and optimize battery performance accordingly. This emerging technological trend will mainly change the manufacturing, operations, and customer experiences for OEMs as well as dealerships.

This not only increases the efficiency of the battery but also increases the range. Besides increasing range and efficiency, AI will also contribute to predictive maintenance, autonomous driving, and improved management of energy in EVs. Automotive companies are also developing other technologies alongside AI including the Internet of Things (IoT) which will allow EVs to connect with homes, grids, and Vehicle-to-everything (V2X), which will change the dynamic of maintenance.

As discussed above, V2X technology will open new possibilities for OEMs and automotive companies to make a smooth transition into utilizing renewable sources of energy. As EVs are becoming more technology-centric OEMs and automotive companies will rely on software solutions that can streamline the processes managed by their dealerships. This includes warranty management, electronic parts cataloging, field issue reporting, and other aspects included in dealership management.

In Conclusion

The growing EV industry has seen significant change over the years and will continue to transform while reshaping the way OEMs and dealerships operate. Large investments in battery technology and charging infrastructure are solving some of the major challenges of the industry including rage anxiety and charging efficiency.

Meanwhile, the direct inclination toward emerging technologies will solve the upcoming challenges that will arise with the increased complexity of EVs. OEMs are more aware of sustainable practices and the coming years will witness the efficient use of renewable sources of energy through EVs on the road. As these trends unfold in the upcoming years OEMs will rely on software solutions, machine learning, and sustainable sources of energy making it an integral part of the EV aftermarket.