Automotive Technology: 15 Innovations That Reshaped the Industry
Looking back at cars from 1991, the leaps in automotive technology over the past 25 years are astonishing. Here are 15 of the most significant advancements and milestones that have transformed the industry.
15: Electronically Controlled Torque Vectoring Differential, 1996

Mitsubishi pioneered electronically controlled differentials, with their Active Yaw Control system on the high-performance Evolution model in the late 1990s. While the Evo didn’t reach the U.S. until 2003, the technology is now common in high-performance cars. These differentials precisely distribute torque across an axle using electronics, directing power to individual wheels as needed. This improves handling, drivability, and traction in all weather conditions. This tech isn’t limited to sports cars; the Land Rover LR4, for example, has an electronic rear differential that can fully lock for off-road use and unlock for street driving.
14: High-Tech Headlamps, 1992

Headlamp design underwent a revolution in the early 1990s. High-Intensity Discharge (HID) headlamps, which produce significantly brighter light than traditional halogen bulbs, arrived in European sedans in 1992. Since then, innovation has continued. Light-emitting diode (LED) headlamps emerged in the early 2000s, offering small size, high efficiency, and design flexibility. Adaptive LED headlamps, which automatically adjust individual bulbs based on conditions, further enhance visibility without blinding other drivers. The future may hold laser headlamps, already being developed by German automakers, promising even greater range and brightness.
13: The Smart Key, 1998

If you’ve driven a car with push-button start, you likely find the old key-and-ignition experience feels outdated. Smart key fobs have made getting into and starting vehicles nearly effortless. The fob remains in your pocket, doors unlock upon touch, and the engine starts at the push of a button. Mercedes-Benz introduced this technology in 1998, initially with credit card-sized key fobs, which evolved into the key fobs we use today.
12: Dual Clutch Transmission, 2003

Dual-clutch transmissions (DCTs) provide the benefits of automatic transmissions without the drawbacks. In a six-speed DCT, for example, one clutch handles odd gears, and the other handles even gears. This design allows for seamless and incredibly fast gear changes, something as easy to use as an automatic but with quicker shifts than a manual. Volkswagen popularized the DCT and made it accessible in mainstream cars, launching its DSG transmission in performance vehicles like the GTI in 2003. DCTs are now common in performance applications across many brands, signaling a major shift away from manual transmissions.
11: On-Board Diagnostics II, 1996

OBD II, an evolution of 1980s on-board diagnostic systems, vastly increased diagnostic capabilities. It allows technicians and home mechanics to access specific codes to identify and diagnose vehicle issues. This sophisticated control has also led to improvements in fuel economy and enhanced performance. Initially, some car enthusiasts disliked OBD II because it was primarily designed to test emissions. However, since its introduction, cars have become both more powerful and cleaner, and OBD II has facilitated a significant aftermarket for scan tools and performance modifications.
10: Advanced Turbocharging Goes Mainstream, 2008

Turbos have been used in production cars since the 1960s. These compressors, driven by the vehicle’s exhaust gasses, force more air into the cylinders. When combined with more fuel, that results in more power. Turbos can make a small engine perform like a much larger one. Both GM and Ford introduced small turbocharged engines in the 2008-2009 timeframe that signaled the tech had matured enough to install in the company’s least-expensive cars. Now automakers could use smaller, more efficient turbo engines and retain (or even exceed) the power levels of larger engines. Today, nearly every manufacturer has downsized its engines to smaller turbocharged ones with a boost in performance and fuel economy. What changed? The design of the turbos themselves were refined. Parts were made smaller, lighter, and more responsive. Twin-scroll turbos and twin-turbo setups allow engines to make power and torque all across the rev range with very little of the lag that old-style turbo engines were known for. Modern turbos are constructed of stronger materials than the old ones. The popularization of direct fuel injection also contributed to turbo performance, because this form of fuel delivery helps cools the intake stream, which allows for higher compression ratios—and more reliable power.
9: Mandatory Tire Pressure Monitoring, 2000

The standardization of tire pressure monitoring systems (TPMS) in automobiles has reduced the number of cars stranded with flat tires. These systems alert drivers to under-inflated tires before major issues arise. Indirect TPMS uses the anti-lock braking system and wheel speed sensors to detect spinning tires, indicating reduced air pressure. Direct TPMS uses internal pressure sensors, providing more accurate readings. The Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act of 2000 mandated that all passenger vehicles have TPMS by 2008.
8: Rear View Backup Camera, 2002

Before the early 2000s, drivers relied on mirrors and neck-craning to see behind their cars. In 2002, Infiniti introduced a backup camera in the new Q45, improving safety and easing parking difficulties. This technology has since advanced, with systems like Nissan’s Around View Monitor offering a 360-degree view. Today, rear-view cameras are standard on many new vehicles, and their effectiveness in preventing accidents led to a mandate for all passenger vehicles by 2018.
7: GM EV1, the First Highway-Capable Mass-Produced Electric Vehicle, 1996

Electric cars have a long history, with early models appearing in the late 1800s. The GM EV1, launched in 1996, was a highway-capable electric vehicle that looked and drove like the future. Despite some drawbacks like long charge times, the EV1 was a major step forward. While the original EV1s were leased and infamously crushed upon their return, this model paved the way for today’s EV revolution. Advances in battery technology have enabled the development of modern EVs, such as GM’s Bolt, offering a range of nearly 240 miles on a single charge.
6: Bluetooth Integration, 1998

Bluetooth technology’s impact on the automotive industry may not have been immediately obvious in the late 1990s, but it quickly became essential. By 2001, car manufacturers were offering hands-free in-car kits. Today, Bluetooth is in nearly every car and cell phone, making hands-free communication easy and often legally required.
5: Radar-Based Cruise Control, 1999

Radar cruise control systems provide a building block toward self-driving vehicles. These systems maintain a set speed and a safe following distance, even if the car ahead changes speed. Mercedes-Benz debuted this technology with Distronic in the 2000 S-Class. This technology, which has advanced significantly, now also helps to avoid collisions. Mercedes-Benz added the ability to steer just three years ago, and last year Tesla enabled its somewhat controversial Autopilot with fully autonomous control.
4: Airbags Everywhere, 1998

While the concept of airbags dates back to the 1950s, early designs were not practical. Modern airbags emerged in luxury cars in the 1980s, and in 1990 Ford made airbags standard on all its vehicles.. The Intermodal Surface Transportation Efficiency Act of 1991 mandated airbags in all cars by 1998. This ensured that airbags became a standard safety feature. The law also led to lower-powered airbags to reduce injury. Airbags have saved tens of thousands of lives, and the success of driver and passenger bags lead to a proliferation of airbags around the cabin. Today, even a humble compact sedan has driver and passenger airbags in addition to side-impact airbags and side curtain airbags that trigger in the event of a rollover.
3: GPS Satellite Navigation, 2000

Before GPS, cross-country trips required paper maps. Automakers began offering navigation systems in the mid-to-late 1990s, but full precision for civilians arrived in 2000. Automakers installed systems like the BMW 7-Series. The aftermarket for portable GPS units then exploded. Paper maps have virtually disappeared from cars as GPS navigation has become highly effective and convenient.
2: Stability Control, 1995

Stability control, introduced in the mid-1990s, built on anti-lock brakes and traction control. Computing power and sensor improvements allowed automakers to apply brakes to individual wheels and reduce wheel slip. Stability control adds a yaw sensor to detect sliding, which triggers braking to control the vehicle’s path. Mercedes-Benz and BMW were the first to offer stability control. Due to its safety benefits, the technology became mandatory in all passenger vehicles in 2012.
1: Toyota Prius and the Hybrid Drivetrain, 1998

Hybrid-electric powertrains have dramatically improved fuel economy. Toyota’s 1998 Prius pioneered mass-produced hybrids, combining a gasoline engine with an electric motor. While early adoption was slow, the concept revolutionized the automotive industry. Nearly every automaker now offers a hybrid or plug-in hybrid model. Toyota has sold millions of Prius liftbacks, and now has a full lineup of Prius-badged hybrids. Toyota also replaced the original frumpy look of the first Prius design, and the vehicle has become a staple on roadways worldwide.