Asian Automakers Invest in Digital, Electrified Future

Business Wire

24-07-2025

SYDNEY--(BUSINESS WIRE)--Automotive and mobility companies in Asia Pacific are developing advanced digital vehicle platforms and features to stay competitive amid rapid electrification and changing consumer expectations, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
Asia Pacific is a key region in the development of new vehicle platforms and features. As regulatory and market pressures grow and change, manufacturers continue to advance both their products and their methodologies.
The 2025 ISG Provider Lens ® Automotive and Mobility Services and Solutions report for Asia Pacific finds that the market for electric and hybrid vehicles in the region continues to grow, driven in part by government support, urbanization and environmental concerns. Interest in and development of autonomous vehicles (AVs) is also accelerating, led by rapid developments in China and Southeast Asia. These trends, along with rising demand for connected cars with new digital capabilities, are driving innovation throughout the region's industry.
'Asia Pacific is a key region in the development of new vehicle platforms and features,' said Michael Gale, partner and regional leader, ISG Asia Pacific. 'As regulatory and market pressures grow and change, manufacturers continue to advance both their products and their methodologies.'
Automotive manufacturers and service providers are increasing their investments in Asia Pacific to build up production and technology infrastructure for the new age of electric and software-defined vehicles, the report says. This includes investments in battery technologies, localized supply chains and public-private partnerships.
Companies are transforming automotive engineering and production with digital advancements to increase their agility, accelerate time to market and respond more quickly to changing consumer demands, ISG says. By using digital twins to simulate products under development, manufacturers are eliminating the cost of some physical prototypes, while physical prototyping itself is becoming faster and less expensive with 3D printing. Some companies are moving toward the use of blockchain technology for trust and transparency throughout the development process, further reducing timelines.
Automakers in Asia Pacific are increasingly focused on enhancing customer experience through digital features such as advanced driver assistance and AI-powered service recommendations, the report says. Vehicles are becoming defined by software more than by hardware, especially with over-the-air updates that allow manufacturers to significantly improve features over time. The emergence of software-defined vehicles is reshaping product design and development and helping to clear a path to new mobility models such as car-sharing and subscriptions.
As vehicle platforms and development approaches evolve, service providers are gaining competencies to assist automakers from product inception through testing, refinement and manufacturing, ISG says.
'Electrification, digitalization and new ownership models are changing nearly every aspect of the automotive business,' said Shirish Madhukar Kulkarni, lead author of the report. 'Service providers need to expand and strengthen their capabilities to help manufacturers in Asia Pacific succeed in this new environment.'
The report also examines other automotive and mobility trends in Asia Pacific, including the growing imperative for more sustainable operations and the evolution of automotive retail channels.
For more insights into the challenges faced by automotive enterprises in Asia Pacific, along with ISG's advice for addressing them, see the ISG Provider Lens ® Focal Points briefing here.
The 2025 ISG Provider Lens ® Automotive and Mobility Services and Solutions report for Asia Pacific evaluates the capabilities of 39 providers across five quadrants: Automotive Engineering and Manufacturing Services, Electric Vehicles and Mobility Services, Autonomous Systems and Software-defined Vehicles, Automotive Retail and Aftermarket Services and Technology Transformation and Consulting.
The report names Accenture, Cognizant, HCLTech, IBM, Infosys, TCS, Tech Mahindra and Wipro as Leaders in all five quadrants. It names Capgemini and Deloitte as Leaders in four quadrants each and KPIT, LTTS and NTT DATA as Leaders in three quadrants each. Tata Elxsi and UST are named as Leaders in two quadrants each. Akkodis and FPT Software are named as Leaders in one quadrant each.
In addition, FPT Software is named as a Rising Star — a company with a 'promising portfolio' and 'high future potential' by ISG's definition — in two quadrants. Akkodis, Cyient and DXC Technology are named as Rising Stars in one quadrant each.
The 2025 ISG Provider Lens ® Automotive and Mobility Services and Solutions report for Asia Pacific is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens ® Research
The ISG Provider Lens ® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.