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).

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.