Automakers are showcasing cutting-edge in-vehicle experiences at CES, the Consumer Technology Association’s annual tech trade show in Las Vegas, reports AP. Innovations on display include interior lighting designed to reduce motion sickness, holographic dashboards projected onto windshields, and AI-powered voice assistants integrated with infotainment systems for enhanced driving experiences. Trump's electric vehicle policies create uncertainty for automakers Hyundai Mobis demonstrated full-windshield holographic technology, BMW unveiled its new “iDrive” panoramic display, and Honda, along with Sony Honda Mobility, previewed features in their forthcoming electric vehicles. These advancements aim to make the car interior a more comfortable and engaging space, according to Axel Maschka, Hyundai Mobis’ executive vice president and head of business. Hyundai Mobis’ holographic windshield display, which remains years away from commercial availability, projects critical driving information, safety alerts, and entertainment options across the windshield. This technology provides varied views based on seating position: for instance, the front-row passenger can watch a movie or play a game, while the driver’s view remains distraction-free. Maschka highlighted that this setup ensures drivers focus on the road by minimising unnecessary distractions. Automakers Renault, Nissan make cross-shareholdings equal Car safety experts stress the importance of keeping drivers’ eyes on the road and avoiding overly complex displays. Ian Reagan, senior research scientist at the Insurance Institute for Highway Safety, warned that too many visual elements could overwhelm drivers. While he acknowledges recent progress in panoramic displays designed to simplify information presentation, he cautions that not all innovations prioritise safety over consumer appeal. BMW echoed this focus on streamlined information with its Panoramic iDrive and Operating System X, debuting in select models later this year. Stephan Durach, BMW’s Head of UI/UX Development, emphasised the importance of presenting only essential details in the driver’s line of sight, aiming to reduce distractions. He rejected the idea of cars as “smartphones on wheels,” underscoring the need for clarity and minimalism in design. Sony Honda Mobility introduced “Afeela 1,” featuring an AI-driven voice assistant that engages in interactive conversations to enhance the driving experience. CEO Yasuhide Mizuno described the assistant as proactive, providing drivers with useful information while entertaining them. Scheduled for release later this year, with deliveries starting in mid-2026, Afeela 1 also offers a panoramic infotainment system with various entertainment apps. Automakers face a threat to EV sales: Slow charging times Meanwhile, Honda previewed its upcoming 0 series of electric vehicles, set to launch in North America next year. Its “AISMO OS” operating system supports automated driving, advanced driver assistance, and customisable in-car infotainment. Honda promises continuous updates to its software, allowing vehicles to become more personalised over time. Katsushi Inoue, Honda’s global head of electrification, explained that increased usage would enhance the system’s adaptability to individual preferences. Despite the enthusiasm surrounding these advancements, safety and usability concerns persist. Reagan noted that partially automated driving systems often lead to higher driver distraction, as users must remain ready to intervene. Similarly, AI voice assistants, while potentially reducing visual distractions, can become counterproductive if they require overly complicated interactions. In addition to enhancing in-cabin experiences, automakers at CES highlighted the importance of sustainable energy. Honda, in collaboration with seven other automakers, is working on the “IONNA” charging network, aiming to provide over 100,000 charging stations in North America by 2030. The company is also exploring AI-driven solutions to personalise charging, such as locating nearby stations or simplifying payment processes, with potential integration of Amazon Web Services technology. CES 2025 offers a glimpse into the future of driving, where comfort, connectivity, and sustainability converge — though ensuring safety remains a critical challenge as these innovations evolve.

While electric vehicle demand is expected to continue growing this year, the forecast is clouded by uncertainty surrounding potential policy changes and tariffs, reports AP. S&P Global Mobility predicts global sales of 15.1 million battery electric vehicles in 2025, reflecting a 30% increase. These vehicles are expected to capture 16.7% of the light vehicle market. Automakers Renault, Nissan make cross-shareholdings equal Tesla, China's BYD, and other manufacturers face significant uncertainties in 2025. Under Donald Trump's presidency, major policy changes related to taxes and incentives for both electric vehicle producers and consumers could occur. The possibility of tariffs on imports and retaliatory tariffs globally could further complicate production and sales for electric vehicles. “There's just a lot of uncertainty in the air,” said Stephanie Brinley, associate director of auto intelligence at S&P Global Mobility. “It’s not an environment where you want to necessarily go gangbusters.” In the U.S., consumers can currently claim a federal tax credit of up to $7,500 for certain new electric vehicles. Car manufacturers have also benefited from federal support for electric vehicle production and infrastructure. However, all of this may be at risk under President Trump. Automakers face a threat to EV sales: Slow charging times Trump has criticised the federal tax credit for electric vehicles during his presidential campaign, calling it part of a “green new scam” that would harm the auto industry. Nonetheless, the incoming administration is expected to push for wider deregulation of industries, which may benefit carmakers. Despite benefits for consumers and manufacturers, some large electric vehicle makers faced mixed results in 2024. Tesla saw a 1.1% drop in sales, marking its first annual sales decline in more than twelve years. Meanwhile, Rivian's deliveries rose by 2.9%. Tariffs also pose a threat to the industry. As production occurs globally, parts are imported and exported throughout the process. Trump has threatened to tax imports from Mexico, Canada, China, and other countries, potentially triggering retaliatory tariffs. China is the largest market for electric vehicles, followed by the U.S. Within the U.S., Tesla holds a dominant 50% market share. Automakers, like many industries, are adopting a wait-and-see approach to determine whether Trump will follow through on his threat to rescind tax credits and impose tariffs. The broader auto industry is proceeding cautiously. S&P Global Mobility forecasts a 1.6% decline in light vehicle production in 2024, followed by a further 0.4% drop in 2025. Administration ends antitrust probe of 4 automakers, Calif. This is attributed to automakers aligning production with demand. Overall, light vehicle sales are expected to increase by 1.7% in 2025. The ongoing shift to electric vehicles also contributes to more measured production. Companies such as Ford and General Motors are reallocating production capacity towards electric vehicles, sometimes at the expense of expanding overall capacity.

Automakers are considering whether to reopen factory lines in China and counting the costs from the virus outbreak in China, while Japanese fashion brand Uniqlo reports half its shops in China are closed.