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 2024-2031

Indian Automotive Market size was valued at USD 108.10 Billion in 2022 and is poised to grow from USD 116.86 Billion in 2023 to USD 217.90 Billion by 2031, at a CAGR of 8.1% during the forecast period (2024-2031).

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. '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'

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.

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.

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.