Automated vehicles (AVs) are a promising solution for the future of transportation. As human factors are responsible for 90–95% of accidents, the integration of Advanced Driver Assistance Technology (ADAS) in vehicles has the potential to significantly reduce crashes. Furthermore, numerous studies have confirmed the benefits of these vehicles in improving traffic dynamics, including their impact on traffic stream capacity and stability. However, the full deployment of AVs on roads will require a transitional phase where they will be sharing the road with regular vehicles (RVs). In this context, this paper provides a review of studies that have assessed the impacts of AVs on traffic dynamics in a mixed-traffic environment. A detailed discussion reveals that the Market Penetration Rate (MPR), vehicle category, vehicle's operational settings, and traffic volume are critical factors that impact the improved traffic dynamics. Moreover, in a country such as India, where traffic conditions are heterogeneous and unique, it is of particular interest to investigate the impact of these factors on traffic characteristics.