In the fast-evolving world of cybersecurity and the automotive industry, continuous research and regular upgrades are fundamental requirements, says Akshat Khetan.

Cybersecurity has been an ongoing concern in the automotive sector for quite some time. However, it gained prominence with the digitisation of the systems as that increased the vulnerabilities both for the manufacturers as well as the buyers. One of the earliest incidents that highlighted its importance was the ‘Jeep Cherokee Hack’, when two security researchers – Charlie Miller and Chris Valasek – wirelessly hacked into a Jeep Cherokee in 2015. The duo surprised the experts by first taking control of the entertainment system and windshield wipers, and then disabling the accelerator of the vehicle. With the advancement of technologies now the modern vehicles have turned into rolling computers, and that in turn has made cybersecurity an indispensable part of the sector. 

Rising tide of connected vehicles and cyber threats

The market of connected vehicles in India has seen significant growth over the past couple of years. The market size reached USD 6.49 billion in 2024. It is expected to reach USD 27.20 billion by 2033 exhibiting a growth rate (CAGR) of 15.40% during 2025-2033. This growth in India is driven by technologies that enable users to monitor the battery health in real time, check availability of charging stations, and people’s mindset of investing more in digital infrastructure for enhancing comfort and convenience.

While the market for connected vehicles is expanding, cyber-crime is becoming increasingly severe. As many as 6,000 complaints are reported daily on National Cyber Crime Reporting Portal, with an average Rs 60 crore loss reported by Indian victims daily. In Mumbai alone, cyber-crime increased by around 350%, and the residents lost property worth over Rs 1,200 crore to such criminals in 2024. Law enforcement agencies have disclosed that hacking groups from different countries including Pakistan, Middle East, Indonesia and Morocco are also targeting Indians.  

Criminals exploit car connectivity

Connected vehicles operate based on data generated from communication with other vehicles, infrastructure and of course, cloud. Features like over-the-air (OTA) software updates, advanced driver-assistance systems (ADAS), and vehicle-to-everything (V2X) communication act like a vehicle’s five senses; and they ensure its seamless connectivity with the outside world. This connectivity, however, comes with an inevitable risk as it makes the vehicle's system accessible to the cyber-criminals. 

Remote hacking and key-less unlocking are two common tactics that the criminals have been using for some time now. While the first one is used to take control of the vehicles entirely, the second one is effective in stealing them. This apart, the criminals also inject malicious software to the vehicle’s electronic control units (ECUs) and firmware, which might lead to a disaster. Data breaches are yet another major issue, which expose the vehicle’s internal diagnostics, GPS location and personal driver data to the mischief-makers.

AI drives India’s auto shift

Artificial Intelligence (AI) has revolutionised the automotive sector in the true sense of the term.  Such AI-driven systems use sensors, cameras, and machine learning algorithms to power self-driving cars. They can enhance the safety of the motorists and reduce human errors on the road. AI is increasingly powering Advanced Driver Assistance Systems (ADAS) features such as lane departure warnings, automatic emergency braking, parking assistance among others. The cyber-criminals would take advantage of such advanced technologies in different ways. For instance, adversarial attacks might cause misinterpretations in object detection. AI-driven voice assistants can lead to unauthorised commands, compromising vehicle security.

Adoption of AI skills in different sectors in India is commendable. According to the Stanford AI Index 2024, India ranks first globally in AI skill penetration with a score of 2.8. We are much ahead of the US (2.2) and Germany (1.9) in it. AI talent concentration in India has grown by 263% since 2016, positioning the country as a major AI hub. However, we must ensure that AI-literacy and skills are not being misused by any segment. Today, cyber safety in a vehicle is required not only for protecting data, but also for ensuring safety of the motorists on the road.

Protecting auto innovation from cyber-criminals

With rising challenges, automakers must adopt a 360-degree approach to cybersecurity through comprehensive actions. The connected vehicles are dependent on interconnected electronic control units (ECUs) that communicate through internal networks. These networks must be designed with robust security measures to prevent unauthorised access.

Second, automotive software needs continuous monitoring and updates to patch vulnerabilities. Manufacturers must ensure that over-the-air (OTA) updates are properly authenticated to prevent hackers from injecting malicious code into vehicle systems.

Third, manufacturers must protect personal information because modern vehicles collect a huge amount of user data. They must ensure strong encryption and compliance with global regulations like GDPR, which help safeguard driver data from breaches. AI anomaly detection is effective in identifying unusual patterns, flagging potential cyber threats in real time.

In view of increasing cyber-attacks, cyber insurance should be considered as a prerequisite by the vehicle owners. Such insurance offers vital financial and operational support in the event of a breach, covering costs associated with incident response, legal fees, and reputational damage.  

Way forward

The ‘level 5’ fully autonomous vehicles are still outside the reach of the common automobile buyers. But it can be predicted that connected vehicles are going to rule the market soon. Thinking of a new-age vehicle without cybersecurity is like buying a house with no locking system.

In the fast-evolving world of cybersecurity and the automotive industry, continuous research and regular upgrades are fundamental requirements. AI-powered systems will usher in several new trends, but we need to be agile to tackle it with astute technical expertise. Our strength lies in thinking ahead of criminals and demoralising them by mitigating vulnerabilities. It’s our collective responsibility to keep our digital as well as physical assets safe for a better future of the country, and thereby make it a ‘Shaktishaali Bharat’.      

Akshat Khetan is a cyber-legal expert and Founder of AU Corporate Advisory and Legal Services (AUCL). AUCL is a leading name in corporate and legal advisory, guided by Mr Khetan’s decades of expertise in corporate debt restructuring and insolvency. His approach merges a wealth of experience with a fresh, innovative mindset, empowering clients to find decisive solutions to their challenges. His unwavering commitment to value creation has helped him drive businesses and revitalisation efforts across industries.

Headquartered in Mumbai’s iconic Nariman Point, AUCL offers a comprehensive range of services, including Corporate Advisory and Strategy, Mergers and Acquisitions, Financial Advisory, Debt Syndication, Insolvency Management, and Litigation Services. The firm is a trusted partner for organisations seeking expert assistance across these specialised areas.

You can follow Mr Akshat Khetan on X (formerly Twitter) @akshat_khetan.