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| Cerence made its pitch for the future of in-car AI at IAA Mobility 2025 in Munich this last September: ditch reactive assistants, embrace agentic co-pilots. The company’s latest updates to Cerence xUI™ promise to transform chatty infotainment systems into proactive AI partners that understand context, anticipate needs, and make driving (and even working) smarter and safer. Image Credit: Cerence via TechEdge ai (2025) |
CES 2026: Automotive Trends Lean Toward AI Amid EV Market Realities
By
Edmund Jenks
- EVHNews - January 02, 2026
As the calendar flips to 2026, the Consumer Electronics Show (CES) in Las
Vegas is once again upon us, promising a spectacle of innovation. However,
for those tracking the electric vehicle (EV) and hybrid sectors, the event's
pivot toward robots and "living with AI" might feel like a detour from the
hardware-heavy showcases of yesteryears. Electric Vehivle & Hybrid News
(EVHNews), ever the observer of market ebbs and flows, notes that while
futuristic EVs will still make appearances, the real buzz this year centers
on the software ecosystems powering them ... a timely shift given the
evident retreat in EV demand, contrasted by the surging growth in AI
applications.
Here's a grounded look at what to anticipate in the automotive space at CES
2026, where hype meets hard economic truths.
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| Will SONY-Honda reveal onboard electronics seen in the Afeela 1 to the Honda 0 SUV introduces in 2025 as well? Lookin' forward for the CES 2026 experience. Image Credit: Edmund Jenks - EVHNews (2025) |
SONY-Honda Returns with Incremental Updates
Last year's CES introduced the Afeela 1, the inaugural EV from the
Sony-Honda Mobility (SHM) partnership, complete with a static demo of its
infotainment setup. For 2026, SHM is set to unveil a "pre-production"
iteration of the Afeela 1, accompanied by a fresh concept vehicle. EVHNews
questions the tangible differences here; the 2025 model already appeared
polished and production-adjacent, suggesting this label might be more
marketing flair than meaningful progress.
Production is slated to commence sometime in 2026, with initial availability
limited to California - a cautious rollout that aligns with the broader EV
market's cooling enthusiasm. As consumer interest wanes amid economic
pressures and uneven infrastructure, such measured steps reflect a sector
recalibrating after overpromising.
Software-Defined Vehicles: The Very Quiet Revolution
If there's a unifying thread at CES 2026, it's the maturation of
software-defined vehicles (SDVs), a concept that's evolved from buzzword to
necessity. Automakers are increasingly prioritizing post-purchase evolution
over static hardware, emphasizing operating systems, over-the-air (OTA)
updates, and adaptable software architectures.
Firms like P3 will spotlight
Android Automotive-based platforms, enabling ongoing feature rollouts, app integrations, and services. For
drivers, this promises enhanced infotainment and longevity; for
manufacturers, it's a pathway to recurring revenue. EVHNews appreciates the
pragmatism here, especially as EV sales stutter - U.S. figures peaked in
late 2025 before plummeting post-incentive expiration, prompting giants like
GM and Ford
to slash EV investments in favor of hybrids and traditional powertrains that
sustain profitability.
Yet, the spotlight intensifies on "agentic AI," where systems proactively
decide for users - handling route optimization, energy efficiency, and
adaptive driver aids. This isn't mere voice assistance; it's AI anticipating
needs in real-time. While EVHNews harbors skepticism about EVs' faltering
demand, we sees undeniable momentum in AI's expansion, potentially
revitalizing vehicles as smart companions. Still, concerns linger: How much
autonomy will drivers cede, and at what cost to privacy in an era of
data-driven decisions?
Tempered Expectations: From Flash to Functionality
CES 2025 brimmed with ambitious EV declarations, but 2026 appears poised for
a sobering dose of reality. Analysts describe the auto industry as entering
"EV realism," where electrification remains aspirational but timelines stretch amid
fragmented demand and ideological fatigue. EVHNews concurs, pointing to the
retreat in market fervor - sales dips have forced a refocus on hybrids,
trucks, and SUVs that actually drive volume, rather than chasing
unattainable all-EV utopias.
Consequently, the automotive narrative at CES may underwhelm in spectacle,
favoring supplier innovations in chips, sensors, robotics, and manufacturing
tech. This subdued tone isn't a setback, per EVHNews; it's a maturation. As
AI surges forward, integrating seamlessly into hybrid and EV platforms
alike, it could bridge the gap left by retreating EV hype, fostering
sustainable growth in a more balanced mobility landscape.
For EV and hybrid enthusiasts, CES 2026 underscores a pivotal truth: The
future isn't just electric ...it's intelligent, adaptable, and attuned to
market realities. Stay tuned to
EVHNews.com for on-the-ground insights as
the show unfolds.
... notes from
The EDJE
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