USD 108.10 Billion
India Automotive Market Size, Share, Growth Analysis, By Vehicle(Passenger cars, Commercial vehicles, and Two-wheelers), By Fuel(Gasoline, Diesel, Electric, and Hybrid vehicles), By Region - Industry Forecast 2025-2032
Report ID:
SQMIC25C2134 |
Region:
Country |
Published Date: February, 2024
Pages:
157
|Tables:
64
|Figures:
75
India Automotive Market Insights
India Automotive Market size was valued at USD 116.86 Billion in 2023 and is poised to grow from USD 126.33 Billion in 2024 to USD 235.55 Billion by 2032, growing at a CAGR of 8.1% during the forecast period (2025-2032).
India is a major contributor to the global automotive industry, and thus the Indian automotive market is witnessing widespread growth. Recently, the Indian automotive market has consistently grown, even in the face of several challenges.
The usage and adoption of connected automotive technology is increasing in India. This technology integrates vehicles with internet connection. This results in the utilization of features like real-time navigation, remote diagnostics, and vehicle-to-vehicle interaction. Though fully automated vehicles have not hit the road in India, companies are experimenting on driverless-vehicles in controlled situations due to the rising interest in autonomous driving technology in the country.
The growth of the Indian automotive market can be credited to several factors. Some of them include increasing shifts to urban areas, growing middle-class population, and an increasing focus on green mobility solutions. The latter trend has driven Indian automakers to make great strides in the production of EVs and hybrid vehicles, all to preserve environmental health. Learning from India’s initiative, international automakers are making large investments in local research and development and production centers. These shifts and developments have helped market expansion, persevering against challenges like regulatory restrictions and infrastructure barriers.
India’s quickly changing and developing environment of the automotive industry to find better mobility solutions has helped it cement a great palace in the global automotive industry, and it is predicted to stay on course. As a result, the Indian automotive market is providing both domestic and international market participants with a wide range of prospects for market growth. Overall, the Indian automotive market plays a significant role in the contribution toward the expansion and growth of the global automotive market.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Diesel
Fastest Growth
Electric
Growth Rate
8.1% CAGR
India Automotive Market ($ Bn)
Country Share for IndiaRegion (%)
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India Automotive Market Segmental Analysis
Segmentation of the Indian automotive market based on vehicle types include passenger cars, commercial vehicles, and two-wheelers. The categorical division of the market based on Fuel-type result in the following segments: gasoline, diesel, electric, and hybrid vehicles. Based on region, the market is divided into regions such as North America, Europe, Asia-Pacific, and Latin America.
Analysis By Vehicle
The appeal of compact SUVs has risen dramatically owing to its adaptability, which strikes a mix between driving in the city’s straight and smooth terrain while also having the off-roading potential. These automobiles attract the Indian customer base because of its high-ground clearance, roomy seating, and small stature. Additionally, this segment’s significant rise has been facilitated by the influx of price-sensitive and reasonably priced models from domestic and international producers.
On the other hand, customers who are on the lookout for bigger and more feature-rich cars can opt for mid-size SUVs. They provide roomy seating arrangements, cutting-edge technology, and an air of distinction among other automotives. As the middle-class population of the Indian economy accesses a richer lifestyle, their desire for better and more quality driving experiences increased, leading to the market’s explosive growth.
Analysis By Fuel
Though fuel-running vehicles are still dominant in the Indian automotive market, EVs and hybrid vehicles are rising quickly, becoming the fastest-growing market segment. India has not strayed from the path towards a healthy environment, thus resulting in its growing purchase and use of green automobiles to reduce emissions. This, coupled with advancements in battery technology and evolving infrastructure has helped this market segment flourish in recent years. The development and growth of the electronic and hybrid vehicles segment can be attributed to India’s unfaltering commitment towards a greener and cleaner environment, aligned with the global emphasis on the introduction of environmentally friendly transportation solutions. Nevertheless, the Indian automotive market must follow the path of regulatory compliance and infrastructural developments maintain its trajectory.
Global Paper Products Market By Fuel
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India Automotive Market Regional Insights
The Indian automotive market’s largest share is held by Northern-India, encompassing Punjab, Haryana, Delhi, Rajasthan, and Uttar Pradesh. This segment of the market maintains a sharp emphasis on passenger cars and two-wheelers. Delhi-NCR (National Capital Region) is a major manufacturing and sales centre in the automotive market.
The growing automobile hubs of South Indian states like Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana are quite well-known in the market. Chennai is a significant automotive manufacturing and export marketplace. This area’s dominance can be credited to the fact that it serves as home base for a number of motorcycles and other automakers.
India Automotive Market By Region
- Largest
- Fastest
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India Automotive Market Dynamics
Drivers
- Initiatives and Incentives Introduced by the Government: The Indian government has introduced and publicized a few initiatives and rewards to support and promote the consistent expansion of its automotive sector. The "Make in India'' campaign is one of these government initiatives. It helps promote a higher rate of domestic automotive production. There are other incentives set in place for the production of electric vehicles (EVs), as a way to support the creation of more sustainable transportation options.
- Rapid Urbanization and Increasing Disposable Income: The Indian automotive market’s growth is heavily influenced by the Indian middle class population’s rising disposable income and hyper urbanization rate. As more people shift to urban areas and have access to higher income levels, the demand for personal vehicles, such as cars and motorcycles has continued to grow.
Restraints
- Strict Regulations and Concerns about the Environmental: As the world’s worries about environmental and air pollution continue to grow, much more rigid emission standards have been introduced. Indian automakers are further restricted to align with these new standards in this price-sensitive market. As the globe changes to a higher demand for EVs, the Indian automotive market will have to persevere against problems with consumer demand and purchase and infrastructure development.
- Uncertainty in the Economic Conditions: Fluctuations in this unreliable economy can lead to a severe impact on the Indian automotive market. Economic conditions like overall health of the economy, unstable interest rate, and inflation can affect consumer behavior towards adoption of automotives, hindering market growth.
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India Automotive Market Competitive Landscape
As both national and international players continue to strive for market supremacy, the Indian automotive market depicts a charged competitive landscape. Established automakers like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra retain their position and focus on growing their market share using a wide range of vehicles that fits the differing consumer preferences. Foreign automotive firms, such as Hyundai, Toyota, and Volkswagen, have contributed heavily to the Indian automotive market, gaining market share by getting into collaborations and mergers, along with investing in the Indian market. EV automakers like Mahindra Electric and Tata Motors are furthering the emphasis and execution towards achieving green mobility solutions. By introducing new sustainable options like electric scooters, technology firms, such as Ola Electric and Ather Energy, are reshaping the market. To meet the growing demand for connected and electric vehicles, the Indian market is thrown into further rivalry, which is further influenced by factors like efficiency of cost, innovation and good environmental health. The introduction of more choices for consumers and continued improvements in technology is fueled by this competitive environment of the Indian automotive sector.
Top Player’s Company Profiles
- Hyundai Motor India - South Korea
- Mahindra & Mahindra - India
- Kia Motors India - South Korea
- Ford India - India
- Maruti Suzuki - India
- Ashok Leyland - India
- Toyota Kirloskar Motor - India
- Tata Motors - India
- Honda Cars India - India
- Nissan India - Japan
- Renault India - France
- BMW India - Germany
- Audi India - Germany
- Skoda Auto India - Czech Republic
- Mercedes-Benz India - Germany
- Isuzu Motors India - Japan
- Force Motors - India
- Volvo Cars India - Sweden
- Jaguar Land Rover India - United Kingdom
- Volkswagen India - Germany
Recent Developments
- Stellantis, a leading global automotive company that designs, engineers, creates, distributes, and sells vehicles, parts, and production systems, acquired PSA Group, the second-largest automotive company in Europe, in January 2023,buying them out with USD 52 billion.
- Qualcomm, an American MNC that designs, manufactures, and markets digital wireless telecommunications products and services, bought Arriver, a software brand focused on sensor perception and driving policy, in March 2023 for USD 4.5 billion.
- In April 2023, Amazon,an American tech multinational whose business interests include e-commerce, cloud computing, digital streaming, and artificial intelligence, purchased the self-driving car manufacturer and seller Zoox in April 2023 for USD 1.2 billion.
India Automotive Key Market Trends
- Ride-Sharing Services and Combined Transportation: The idea of shared mobility has garnered popularity in the Indian automotive market, resulting in a new trend dictating this market. This new trend is a result of the combination of a number of factors, such as population majority moving to urban areas and an increasing demand for cost-friendly convenient transportation choices being voiced by consumers, coupled with the crowded population in India requiring innovative mobility solutions in the country. The COVID-19 pandemic hastened the countrywide spread of this trend, as the pandemic saw a rise in individuals who preferred shared services over personal vehicle ownership in India. The market saw an influx of companies that offered car rentals, also providing ride-sharing services as an added bonus, in urban areas, greatly disrupting the market and transforming it for good.
- Consumer Preference Towards Electric Vehicles (EVs): The Indian population is asking for electric vehicles (EVs) as a result of their global popularity. This trend in the Indian automotive market has taken over, thanks to several factors. The contributors toward the growth of this trend, and thus the Indian automotive market, include concerns about the adverse effect air pollution has on the environment and human health and the increasing availability and accessibility of cost-friendly EV technology, coupled with the Indian government putting out new incentives and regulations to drive use of clean energy. In response to this trend, a big number of automotive businesses have introduced electric models of traditional vehicles and continue investing heavily into further development of EV infrastructure, in order to make use of this trend to upscale sales and increase profitability.
India Automotive Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Product types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our research, the potential of the Indian automotive market is yet to be reached, and its prospects look promising. The demand for automobiles in India is driven by increasing disposable income, urbanization, and growing middle class population. Automakers were presented with new opportunities to diversify their product range due to a growing emphasis on sustainable mobility solutions, aligned with global trends, opening up the market to EVs. The growth of the Indian automotive market can be hindered due to problematic issues, such as fierce rivalry, continuous development of infrastructure, and changes in regulations. To fight these challenges and maintain their place in the competitive market, companies need to invest in innovation, be more adaptable to changes in preferences and market conditions, and delve into more collaborations. The Indian automotive market is expected to keep growing and continue to heavily contribute to the global automotive sector.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 108.10 Billion |
| Market size value in 2031 | USD 217.90 Billion |
| Growth Rate | 8.1% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on India Automotive Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on India Automotive Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the India Automotive Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the India Automotive Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the India Automotive Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the India Automotive Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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