CES 2026: Automakers bet on AI and self-driving tech as EV push loses momentum

  • CES 2026 highlights a clear pivot towards AI and autonomous driving as automakers retreat from EV launches amid costs, tariffs and policy uncertainty.

CES 2026 Honda Afeela
Autonomous driving systems and AI-powered mobility technologies draw attention at CES 2026 in Las Vegas. (AP)
CES 2026 Honda Afeela
Autonomous driving systems and AI-powered mobility technologies draw attention at CES 2026 in Las Vegas.
Get Launch Updates on
Notify me

The focus at CES 2026 in Las Vegas is moving decisively away from electric vehicles and towards autonomous driving and artificial intelligence, as the global auto industry searches for new growth opportunities.

With EV programmes being slowed or reconsidered, automakers, suppliers and technology start-ups are using the show to present self-driving systems and AI-powered mobility solutions. Several announcements are expected around new hardware, software and partnerships aimed at reducing driver involvement or removing the need for a human driver entirely.

Also check these Vehicles

Find more Cars
Maruti Suzuki Baleno 2026 (HT Auto photo)
UPCOMING
Engine Icon1197 cc FuelType IconPetrol
₹ 6.80 Lakhs
Alert Me When Launched
Honda Wr-v 2026 (HT Auto photo)
UPCOMING
Engine Icon1199 cc FuelType IconPetrol
₹ 8 - 10 Lakhs
Alert Me When Launched
Yezdi Motorcycles Roadster 2026 (HT Auto photo)
UPCOMING
Engine Icon334 cc Mileage Icon29.06 kmpl
₹ 2.10 - 2.26 Lakhs
Alert Me When Launched
Hyundai I20 (HT Auto photo)
Engine Icon1197 cc FuelType IconPetrol
₹ 6.87 - 10.43 Lakhs
Compare
View Offers
Toyota Glanza (HT Auto photo)
Engine Icon1197 cc FuelType IconMultiple
₹ 6.39 - 9.15 Lakhs
Compare
View Offers
Maruti Suzuki Baleno (HT Auto photo)
Engine Icon1197 cc FuelType IconMultiple
₹ 5.99 - 9.10 Lakhs
Compare
View Offers

Industry executives say how companies deploy artificial intelligence to safely scale autonomous vehicles will be one of the most closely watched themes this year.

“This year you will see more and more focus on AI and autonomous," said C.J. Finn, U.S. automotive industry leader for PwC, adding that how companies use AI to solve the challenge of rolling out driverless cars safely will be closely watched. “That connectivity on autonomous, I do think, will be front and centre," he said.

Also Read : Mercedes to offer autonomous driving tech for US city streets

EV launches take a back seat at CES

CES 2026 runs from January 6 to 9 and remains one of the largest technology exhibitions in the United States. While the event was once best known for consumer electronics, it has increasingly become an important platform for automakers, particularly for electric vehicle debuts in recent years.

That momentum has slowed sharply. A rollback of EV-friendly incentives and policy changes under the Trump administration has weakened demand in the US, forcing several automakers to rethink their product strategies. As a result, most major carmakers are not planning to unveil new EVs at this year’s CES, a clear departure from recent editions.

Also Read : Hyundai Motor Group plans to deploy humanoid robots at US factory from 2028

Automakers and investors put money on autonomy

Bringing autonomous vehicles to market has proven far more difficult than initially expected. High development costs, regulatory hurdles and investigations following collisions have led several companies to shut down or scale back their autonomous programmes.

However, recent developments have renewed confidence. Tesla’s limited robotaxi launch in Austin last year, supported by safety monitors, and the faster expansion of Alphabet-owned Waymo have helped restore momentum in the sector.

Advances in driver-assistance systems are also gaining pace. Some automakers already offer hands-free highway driving and automated lane changes, while others are preparing systems that enable “eyes-off" driving and autonomous operation on city streets.

“That’s starting to align with where people are putting forward their money and how they’re allocating capital," Finn said.

Also Read : Rallying-High five for Toyota but Al-Attiyah leads after Dakar second stage

Cost pressures remain a key concern

Even as interest in autonomy grows, automakers remain cautious with spending. Many are still absorbing billions of dollars in write-offs linked to changes in EV strategies, while also facing higher tariffs on vehicles and components imported into the US.

Rather than passing these costs on to consumers, several manufacturers have chosen to absorb them, placing further pressure on margins. Growing competition from Chinese automakers is adding to those challenges.

“The main theme that we actually expect to see also popping up at CES is around cost and cost competitiveness," said Felix Stellmaszek, global leader of the automotive and mobility sector at Boston Consulting Group.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 06 Jan 2026, 08:15 am IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.