India, Dec. 9 -- The India AI Governance Guidelines (AI Governance Guidelines), released by the Ministry of Electronics & IT under the IndiaAI Mission on 5 November 2025, have profound implications for the Indian automobile sector.

It is rapidly transforming from a mechanical industry to a software-driven data-intensive ecosystem.

The policy's core challenge is to ensure that AI systems, especially in autonomous vehicles (AVs) and Advanced Driver-Assistance Systems (ADAS), deliver on promises of safety and efficiency without compromising human safety, accountability, or data privacy.

The guidelines essentially introduce 'Entity-Based' and 'Activity-Based' regulation to the automotive value chain, focusing on three key areas: Vehicle Sa...