CES 2026: Automotive Trends Lean Toward AI Amid EV Market Realities

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 Vehicle & 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.

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

FEATURED ARTICLE >>>

TAGS: #CES2026, #AutomotiveTrends, #AIinCars, #SoftwareDefinedVehicles, #EVMarket, #Afeela1, #SonyHonda, #AgenticAI, #EVRealism, #HybridShift, #OTAApdates, #AndroidAutomotive, #AutoTech, #MobilityFuture, #EVHNews, #TheEDJE

Supernal: AAM eVTOL Air Taxi Concept Reveal at CES 2024

Supernal vertiport pavilion at CES 2024, located in the Diamond parking lot next to the West Hall of the Las Vegas Convention Center, where the Hyundai S-A2 concept was on display. Image Credit: Edmund Jenks - EVHNews (2024)

Supernal: AAM eVTOL Air Taxi Concept Reveal at CES 2024

At CES 2024, Supernal showcased its ambitious efforts in human passenger air transportation. The standalone pavilion highlighted the company's substantial financial backing and its goal of revolutionizing short-hop air travel within metropolitan areas. Plans were in motion to replicate the display at the Hyundai Motor Group campus in Southern California to attract additional partnerships and promotional support.

The direction of this venture became clearer amid escalating investments in the advanced air mobility (AAM) sector. Forecasts suggested that by 2030, urban air transport could rival the largest airlines in some aspects. Flights would be notably shorter, averaging just 18 minutes, and accommodate fewer passengers—typically one to six individuals alongside a pilot. AAM operations could potentially dwarf conventional airlines, with projections indicating around 20,000 flights per day for AAM operators compared to 2,200 for the largest airlines.

Supernal, Hyundai Motor Group's AAM company, has unveiled S-A2, its eVTOL vehicle product concept at the Consumer Electronics Show (CES) 2024, taking place in Las Vegas, 9-12 January, 2024. Image Credit: Edmund Jenks - EVHNews (2024)

Supernal's latest innovation, the S-A2, marked a significant milestone in its journey towards commercializing safe, efficient, and affordable everyday passenger air travel. Building upon the S-A1 concept introduced at CES 2020, the S-A2 seamlessly merged cutting-edge aerospace engineering with Hyundai Motor Group's automotive design ethos. The aim was to redefine urban transportation, promising swift and seamless journeys from point A to point B.

With plans to enter the market by 2028, Supernal was diligently working towards achieving commercial aviation safety standards while also streamlining the manufacturing process to ensure affordability and scalability of its vehicles. This concerted effort underscored the company's commitment to reshaping the future of urban mobility through innovative aerial solutions.

“Supernal’s product concept vehicle is the result of the creativity and hard work of our world-class team. S-A2 is designed to take full advantage of emerging electric powertrain advancements that will define the next generation of aviation,” commented Ben Diachun, Chief Technology Officer, Supernal (pictured). “From here, we will develop this concept into a revolutionary commercial product.” Image Credit: Edmund Jenks - EVHNews (2024)

S-A2, the V-tail aircraft, is meticulously engineered with a distributed electric propulsion system, boasting eight all-tilting rotors to ensure efficient flight. It's tailored for urban operations, cruising at 120 miles-per-hour at a 1,500-foot altitude, catering to trips ranging from 25 to 40 miles. With noise levels comparable to a dishwasher during take-off and landing (65 dB) and even quieter during horizontal cruising (45 dB), it prioritizes passenger comfort and environmental impact.

Safety is paramount in its design, adhering to global aviation standards with redundant components in critical systems like powertrain, flight controls, and avionics. Hyundai's mass production expertise ensures quality and cost-effectiveness without compromising safety. Additionally, the vehicle is designed for modularity and upgradability, particularly concerning battery technology, to stay aligned with evolving advancements.

“From the beginning, Supernal has been on a mission to create the right product and the right market at the right time,” said Jaiwon Shin, President of Hyundai Motor Group and CEO of Supernal. “The unveiling of S-A2 demonstrates our unwavering commitment to deliver on that mission with a safe, efficient vehicle design that provides a clear path to market entry. By leveraging our talented 600-person team, the vast technical and business capabilities of Hyundai Motor Group and trusted aviation suppliers around the world, Supernal is ready to deliver a new era of flight.” Image Credit: Edmund Jenks - EVHNews (2024)

In terms of aesthetics, Supernal collaborated with Hyundai's automotive designers to merge functionality with captivating design. The cabin features distinct sections for pilots and passengers, delineated by color palettes and materials. Aviation-grade, energy-absorbing components integrated into the seat frames enhance both safety and design. Dynamic lighting enhances the spatial perception of the cabin and provides essential visual cues throughout the flight phases.

Luc Donckerwolke, President, Chief Design Officer, and Chief Creative Officer at Hyundai Motor Group, describes S-A2 as the epitome of blending automotive and aerospace expertise to create a human-centric design prioritizing passenger experience and safety. Leveraging Hyundai's experience in designing efficient vehicles and award-winning electric cars, the S-A2 integrates cutting-edge passenger experience and automotive design principles.

... notes from The EDJE

TAGS: #Supernal, #CES2024, #Hyundai, #eVTOL, #AAM, #vertiport, #EVHnews, The EDJE

GRAVITY By LUCID Debuts At LA Auto Show Press Day

GRAVITY rear panel roofing branding element. Image Credit: Edmund Jenks (2023)

GRAVITY By LUCID Debuts At LA Auto Show Press Day

What could possibly capture the old feeling, of the class in an automobile season opening reveal, of a new manufacturer's model, at the LA Auto Show Press Day 2023? 

Why of course, the first presentation of the day scheduled at the LUCID Motors booth - 9:00am, during AutoMobility LA in the West Exhibit Hall just to the right of the glass entry way doors.

LUCID pulled out all of the stops with a fist class presentation pavilion filled with great introduction music during the countdown leading into an impressive script and slideshow to introduce LUCID's answer to America's obsession with the modern day station wagon turned luxury assault vehicle ... the SUV.

Welcome to the 7 passenger, 3.6 miles per kWh, tow 6000 pounds, haul 1500 pounds, over 440 miles on a single charge - with a smaller battery footprint, coefficient of drag of less than 0.24, an aerodynamic profile unsurpassed by any other three-row SUV, all-new platform that shares its powertrain with the Air sedan, under $80,000 GRAVITY EV SUV.

Introducing the Lucid Gravity: Redefining the Electric SUV

** The new Lucid Gravity heralds the dawn of a new era for electric Sport Utility Vehicles: an unprecedented combination of attributes previously unseen in a single vehicle and a projected range in excess of 440 miles.

** Lucid innovations in EV technology and packaging deliver an expansive, luxurious interior for up to seven adults and their belongings, without the huge exterior and poor maneuverability often associated with traditional full-size, three-row SUVs.

** Featuring a brand-new SUV platform and next generation of Lucid’s award-winning, proprietary electric powertrain, Gravity will deliver an exhilarating driving experience.

** Lucid proved its capability in producing an extraordinary, acclaimed luxury EV sedan; now Gravity opens Lucid to the far larger SUV market.

** Lucid Gravity lands in late 2024. As with Lucid Air, pricing for Gravity will start under $80,000.

Technology breakout of a LUCID powertrain engine. Image Credit: Edmund Jenks (2023)

Gravity Design: A Balance of Form and Function

“At Lucid, we believe in pushing the boundaries of design. We have leaned into this belief to maximize spaciousness, aerodynamic efficiency, and utility, resulting in an electric SUV with a previously unseen blend of attributes,” said Derek Jenkins, Senior Vice President of Design and Brand at Lucid. “Whether it’s a cargo-swallowing SUV for family camping trips or a long-range grand tourer covering hundreds of miles between stops, Gravity is designed to be versatile.  Our team’s dedication to creating an SUV that seamlessly fuses form and function has resulted in a vehicle that’s visually striking, incredibly versatile, and provides an elevated luxury driving experience.”

Lucid’s commitment to design excellence, spacious interiors, and versatility further sets Gravity apart from the competition. The exterior design choices are a testament to Gravity’s fusion of aesthetics and utility. A focus on efficiency has led to a target coefficient of drag of less than 0.24,³ an aerodynamic profile unsurpassed by other three-row SUVs. With a commanding presence supported by a substantial frunk, sleek profile, elongated cabin, pronounced shoulders, and sporty tail spoiler, Gravity showcases its ability to meet the diverse needs of the daily driver.

Always attempt to design for desire is a LUCID trait. Mid-Mod meets Aero-Sculpted. Image Credit: LUCID Motors (2023)

Inside, Gravity impresses with ample and flexible cargo areas. The cabin offers spacious seating, with the added convenience of second and third-row seats that fold flat to reveal more than 112 cubic feet of total usable cargo space for an effortless combination of comfort and cargo capacity. The sliding second row seats combine with integrated convenience tables for an elevated back-seat experience. Remarkable legroom is carried through to the third row, enabling a comfortable seven-passenger configuration, making it the ideal vehicle for every adventure.

Gravity represents a definitive evolution of Lucid’s user interface, called Clearview Cockpit, featuring an intuitive 34-inch curved and uninterrupted OLED display that floats above Gravity’s innovative new steering wheel, closely matched with the driver’s line of sight. Lucid’s Pilot Panel returns in Gravity with a quick access touch bar and sitting alongside a new glass center console that elegantly slides open for additional storage. This SUV also introduces Lucid’s next-generation software with over-the-air updates, ensuring continued vehicle improvement.

[REFERENCE HERE]

The most classy reveal held during the Automobility LA Press Day for the LA Auto Show and this one was held as the first automaker presentation of the day. 

This reveal performance was missed by many attendees who showed up late or were only interested in the art cars and Hollywood Auto Collections that filled halls that were formally owned by marques like Porsche ... that just celebrated their 75th year in business through the Rennsport Reunion 7 held at WeatherTech Raceway Laguna Seca, for example.

... notes from The EDJE

TAGS: #LAAUTOSHOW, #2023, #LUCID, #GRAVITY, #Reveal, #Frunking, #$80K, #EVHNews, #EVVTOL, #AUTOMOBILITYLA, The EDJE