India Automotive Market Report and Forecast 2025-2034
Description
The India automotive market value reached around USD 113.83 Billion in 2024. During the forecast period between 2025 and 2034, the market is expected to grow at a CAGR of 8.10% to reach around USD 248.04 Billion by 2034.
India Automotive Market Growth
Automotives pertain to self-propelled vehicles, cars, or machines and the broader industry involved in producing and maintaining vehicles for transportation. The term automotive includes all aspects related to the design, development, manufacturing, marketing, sales, repair, and modification of motor vehicles.
The increasing urbanisation and growing middle-class population are leading to a rise in demand for passenger cars, with a focus on green mobility solutions. The government's initiatives, such as the Production Linked Incentives (PLI) and Faster Adoption and Manufacturing of (Hybrid) & Electric Vehicles (FAME) schemes, are encouraging the adoption of electric vehicles and contributing to India automotive industry growth.
India Automotive Market Analysis
The India automotive market dynamics and trends are driven by the rising adoption of electric vehicles (EVs). The government's commitment to sustainable mobility, including a goal of 30% EV penetration by 2030, has led automakers to invest substantially in EV technology.
Tata Motors, the leading EV manufacturer in India, has launched several affordable EV models like the Tata Nexon EV and Tata Tigor EV. The availability of government subsidies and incentives for EVs, such as the FAME II scheme, has also encouraged the development and production of affordable EVs.
India Automotive Industry Outlook
The electric vehicle (EV) market is projected to grow at a compound annual growth rate (CAGR) of 49% from 2022 to 2030. Furthermore, the EV industry is expected to create 5 million direct and indirect jobs by 2030, boosting the India automotive market revenue. The transition to electric vehicles presents new market opportunities for manufacturers, enabling them to reach a growing base of eco-conscious consumers.
According to the Society of Indian Automobile Manufacturers, the fiscal year 2021-22 saw a total production of 2,30,40,066 vehicles in India, comprising 36,50,698 passenger vehicles, 8,05,527 commercial vehicles, 7,58,669 three-wheelers, 1,78,21,111 two-wheelers, and 4,061 quadricycles. By 2023-24, these figures had risen markedly, with production reaching 2,84,34,742 units. This includes 49,01,844 passenger vehicles, 10,66,429 commercial vehicles, 9,92,936 three-wheelers, 2,14,68,527 two-wheelers, and 5,006 quadricycles.
Further, as per the Society of Indian Automobile Manufacturers, in the fiscal year 2023-24, India's automobile exports have been estimated to include 6,72,105 passenger vehicles, 65,816 commercial vehicles, 2,99,977 three-wheelers, 34,58,416 two-wheelers, and 4,178 quadricycles, amounting to a total of 45,00,492 units.
The Union Cabinet of India introduced the Production-Linked Incentive (PLI) Scheme for the Automobile and Auto Components sectors, applicable to products manufactured in India from April 1, 2022, for five consecutive years. With a USD 3.5 billion outlay, the scheme offers 18% financial incentives to boost domestic production of advanced automotive technology and attract investments.
In India, the per capita private final consumption expenditure at current prices increased to USD 1,508.19 in 2022-23 from USD 1,418.74 in 2021-22 as reported by the Ministry of Statistics & Programme Implementation. This economic improvement will boost consumer purchasing power, resulting in increasing demand for personal vehicles, thus driving the growth of the India automotive industry.
A large and increasing consumer base drives high sales volumes across various vehicle segments.
Favorable policies, incentives, and subsidies for electric vehicles and manufacturing boost growth of the India automotive industry.
A wide range of products, from two-wheelers to commercial vehicles, caters to different consumer needs and preferences.
Inadequate infrastructure, including insufficient charging stations for EVs, hampers market growth.
Frequent regulatory changes and compliance issues can increase operational costs and affect industry stability.
Economic instability and fluctuations in consumer spending impact overall vehicle sales and market performance.
Growing interest in EVs opens new market segments and opportunities for the India automotive market.
Increasing urbanization drives demand for personal and commercial vehicles in emerging cities.
Expanding into international markets offers growth opportunities and revenue diversification.
High competition from both domestic and international players can erode profit margins.
Volatility in the prices of raw materials affects production costs and pricing strategies.
Stringent environmental regulations may increase compliance costs and require continuous adaptation.
Key Players in the India Automotive Market and their Key Initiatives
Tata Motors Ltd
Expanding its electric vehicle portfolio with 10 models by 2025 to capture the India automotive market opportunities.
Tata Motors and Microsoft India collaborated to redefine the connected experience for automobile users.
Mahindra & Mahindra Limited
Unveiled its first electric SUV on World EV Day.
Ford and Mahindra collaborated to develop vehicles to support the growth of sustainable mobility.
Toyota Motor Corp
Launched the pilot project on Flexi-Fuel Strong Hybrid Electric Vehicle Technology in Delhi.
Enhance its manufacturing capacity in India to meet the growing demand of the India automotive market.
Volkswagen AG
Introduced Taigun and Virtus models.
Launched digital platforms for sales and after-sales services.
India Automotive Industry Segmentation
“India Automotive Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type:
Passenger Vehicles_x000D_ _x000D_ Hatchback _x000D_ Sedan _x000D_ SUV _x000D_ MUV _x000D_ _x000D_
Passenger Vehicles_x000D_ _x000D_ Hatchback _x000D_ Sedan _x000D_ SUV _x000D_ MUV _x000D_ _x000D_
Commercial Vehicles_x000D_ _x000D_ LCVs _x000D_ Heavy Trucks _x000D_ Buses and Coaches _x000D_ _x000D_
Commercial Vehicles_x000D_ _x000D_ LCVs _x000D_ Heavy Trucks _x000D_ Buses and Coaches _x000D_ _x000D_
Passenger Vehicles_x000D_ _x000D_ Hatchback _x000D_ Sedan _x000D_ SUV _x000D_ MUV _x000D_ _x000D_
Commercial Vehicles_x000D_ _x000D_ LCVs _x000D_ Heavy Trucks _x000D_ Buses and Coaches _x000D_ _x000D_
Market Breakup by Transmission:
Automatic
Manual
Market Breakup by Propulsion Type:
Internal Combustion
Electric
Hybrid
Market Breakup by Vehicle Type:
LMV
MCWG
HGMV
India Automotive Market Share
The India automotive market demand is dominated by hatchbacks due to their smaller size, affordability, and suitability for India's urban roads. Meanwhile, the rising preference for versatility, space, and a commanding driving position has driven the demand for SUVs among Indian consumers.
As per India automotive market analysis, the sedan segment has maintained a steady presence by offering a balance of comfort, performance, and style, which appeals to a wide range of consumers. The MPV/MUV segment is projected to grow at a high CAGR as these vehicles are popular for their ability to accommodate large families.
Leading Companies in the India Automotive Market
The companies have a diverse portfolio of products and services and are known for their passenger cars, commercial vehicles, motorcycles, engines, and turbomachinery.
Tata Motors Ltd
Mahindra & Mahindra Limited
Toyota Motor Corp
Volkswagen AG
Ford Motor Company
Renault SA
Honda Motor Co., Ltd.
Hyundai Motor Company
General Motors Company
Kia Corporation
Mercedes-Benz Group AG
India Automotive Market Report Snapshots
India Automotive Market Size
India Automotive Market Growth
India Automotive Market Analysis
India Automotive Market Share
India Automotive Companies
India Automotive Market Growth
Automotives pertain to self-propelled vehicles, cars, or machines and the broader industry involved in producing and maintaining vehicles for transportation. The term automotive includes all aspects related to the design, development, manufacturing, marketing, sales, repair, and modification of motor vehicles.
The increasing urbanisation and growing middle-class population are leading to a rise in demand for passenger cars, with a focus on green mobility solutions. The government's initiatives, such as the Production Linked Incentives (PLI) and Faster Adoption and Manufacturing of (Hybrid) & Electric Vehicles (FAME) schemes, are encouraging the adoption of electric vehicles and contributing to India automotive industry growth.
India Automotive Market Analysis
The India automotive market dynamics and trends are driven by the rising adoption of electric vehicles (EVs). The government's commitment to sustainable mobility, including a goal of 30% EV penetration by 2030, has led automakers to invest substantially in EV technology.
Tata Motors, the leading EV manufacturer in India, has launched several affordable EV models like the Tata Nexon EV and Tata Tigor EV. The availability of government subsidies and incentives for EVs, such as the FAME II scheme, has also encouraged the development and production of affordable EVs.
India Automotive Industry Outlook
The electric vehicle (EV) market is projected to grow at a compound annual growth rate (CAGR) of 49% from 2022 to 2030. Furthermore, the EV industry is expected to create 5 million direct and indirect jobs by 2030, boosting the India automotive market revenue. The transition to electric vehicles presents new market opportunities for manufacturers, enabling them to reach a growing base of eco-conscious consumers.
According to the Society of Indian Automobile Manufacturers, the fiscal year 2021-22 saw a total production of 2,30,40,066 vehicles in India, comprising 36,50,698 passenger vehicles, 8,05,527 commercial vehicles, 7,58,669 three-wheelers, 1,78,21,111 two-wheelers, and 4,061 quadricycles. By 2023-24, these figures had risen markedly, with production reaching 2,84,34,742 units. This includes 49,01,844 passenger vehicles, 10,66,429 commercial vehicles, 9,92,936 three-wheelers, 2,14,68,527 two-wheelers, and 5,006 quadricycles.
Further, as per the Society of Indian Automobile Manufacturers, in the fiscal year 2023-24, India's automobile exports have been estimated to include 6,72,105 passenger vehicles, 65,816 commercial vehicles, 2,99,977 three-wheelers, 34,58,416 two-wheelers, and 4,178 quadricycles, amounting to a total of 45,00,492 units.
The Union Cabinet of India introduced the Production-Linked Incentive (PLI) Scheme for the Automobile and Auto Components sectors, applicable to products manufactured in India from April 1, 2022, for five consecutive years. With a USD 3.5 billion outlay, the scheme offers 18% financial incentives to boost domestic production of advanced automotive technology and attract investments.
In India, the per capita private final consumption expenditure at current prices increased to USD 1,508.19 in 2022-23 from USD 1,418.74 in 2021-22 as reported by the Ministry of Statistics & Programme Implementation. This economic improvement will boost consumer purchasing power, resulting in increasing demand for personal vehicles, thus driving the growth of the India automotive industry.
A large and increasing consumer base drives high sales volumes across various vehicle segments.
Favorable policies, incentives, and subsidies for electric vehicles and manufacturing boost growth of the India automotive industry.
A wide range of products, from two-wheelers to commercial vehicles, caters to different consumer needs and preferences.
Inadequate infrastructure, including insufficient charging stations for EVs, hampers market growth.
Frequent regulatory changes and compliance issues can increase operational costs and affect industry stability.
Economic instability and fluctuations in consumer spending impact overall vehicle sales and market performance.
Growing interest in EVs opens new market segments and opportunities for the India automotive market.
Increasing urbanization drives demand for personal and commercial vehicles in emerging cities.
Expanding into international markets offers growth opportunities and revenue diversification.
High competition from both domestic and international players can erode profit margins.
Volatility in the prices of raw materials affects production costs and pricing strategies.
Stringent environmental regulations may increase compliance costs and require continuous adaptation.
Key Players in the India Automotive Market and their Key Initiatives
Tata Motors Ltd
Expanding its electric vehicle portfolio with 10 models by 2025 to capture the India automotive market opportunities.
Tata Motors and Microsoft India collaborated to redefine the connected experience for automobile users.
Mahindra & Mahindra Limited
Unveiled its first electric SUV on World EV Day.
Ford and Mahindra collaborated to develop vehicles to support the growth of sustainable mobility.
Toyota Motor Corp
Launched the pilot project on Flexi-Fuel Strong Hybrid Electric Vehicle Technology in Delhi.
Enhance its manufacturing capacity in India to meet the growing demand of the India automotive market.
Volkswagen AG
Introduced Taigun and Virtus models.
Launched digital platforms for sales and after-sales services.
India Automotive Industry Segmentation
“India Automotive Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type:
Passenger Vehicles_x000D_ _x000D_ Hatchback _x000D_ Sedan _x000D_ SUV _x000D_ MUV _x000D_ _x000D_
Passenger Vehicles_x000D_ _x000D_ Hatchback _x000D_ Sedan _x000D_ SUV _x000D_ MUV _x000D_ _x000D_
Commercial Vehicles_x000D_ _x000D_ LCVs _x000D_ Heavy Trucks _x000D_ Buses and Coaches _x000D_ _x000D_
Commercial Vehicles_x000D_ _x000D_ LCVs _x000D_ Heavy Trucks _x000D_ Buses and Coaches _x000D_ _x000D_
Passenger Vehicles_x000D_ _x000D_ Hatchback _x000D_ Sedan _x000D_ SUV _x000D_ MUV _x000D_ _x000D_
Commercial Vehicles_x000D_ _x000D_ LCVs _x000D_ Heavy Trucks _x000D_ Buses and Coaches _x000D_ _x000D_
Market Breakup by Transmission:
Automatic
Manual
Market Breakup by Propulsion Type:
Internal Combustion
Electric
Hybrid
Market Breakup by Vehicle Type:
LMV
MCWG
HGMV
India Automotive Market Share
The India automotive market demand is dominated by hatchbacks due to their smaller size, affordability, and suitability for India's urban roads. Meanwhile, the rising preference for versatility, space, and a commanding driving position has driven the demand for SUVs among Indian consumers.
As per India automotive market analysis, the sedan segment has maintained a steady presence by offering a balance of comfort, performance, and style, which appeals to a wide range of consumers. The MPV/MUV segment is projected to grow at a high CAGR as these vehicles are popular for their ability to accommodate large families.
Leading Companies in the India Automotive Market
The companies have a diverse portfolio of products and services and are known for their passenger cars, commercial vehicles, motorcycles, engines, and turbomachinery.
Tata Motors Ltd
Mahindra & Mahindra Limited
Toyota Motor Corp
Volkswagen AG
Ford Motor Company
Renault SA
Honda Motor Co., Ltd.
Hyundai Motor Company
General Motors Company
Kia Corporation
Mercedes-Benz Group AG
India Automotive Market Report Snapshots
India Automotive Market Size
India Automotive Market Growth
India Automotive Market Analysis
India Automotive Market Share
India Automotive Companies
Table of Contents
125 Pages
- 1 Executive Summary
- 1.1 Market Size 2024-2025
- 1.2 Market Growth 2025(F)-2034(F)
- 1.3 Key Demand Drivers
- 1.4 Key Players and Competitive Structure
- 1.5 Industry Best Practices
- 1.6 Recent Trends and Developments
- 1.7 Industry Outlook
- 2 Market Overview and Stakeholder Insights
- 2.1 Market Trends
- 2.2 Key Verticals
- 2.3 Key Regions
- 2.4 Supplier Power
- 2.5 Buyer Power
- 2.6 Key Market Opportunities and Risks
- 2.7 Key Initiatives by Stakeholders
- 3 Economic Summary
- 3.1 GDP Outlook
- 3.2 GDP Per Capita Growth
- 3.3 Inflation Trends
- 3.4 Democracy Index
- 3.5 Gross Public Debt Ratios
- 3.6 Balance of Payment (BoP) Position
- 3.7 Population Outlook
- 3.8 Urbanisation Trends
- 4 Country Risk Profiles
- 4.1 Country Risk
- 4.2 Business Climate
- 5 Asia Pacific Automotive Market Overview
- 5.1 Key Industry Highlights
- 5.2 Asia Pacific Automotive Historical Market (2018-2024)
- 5.3 Asia Pacific Automotive Market Forecast (2025-2034)
- 5.4 Asia Pacific Automotive Market breakup by Country
- 5.4.1 China
- 5.4.2 Japan
- 5.4.3 India
- 5.4.4 ASEAN
- 5.4.5 Australia
- 5.4.6 Others
- 6 India Automotive Market Overview
- 6.1 Key Industry Highlights
- 6.2 India Automotive Historical Market (2018-2024)
- 6.3 India Automotive Market Forecast (2025-2034)
- 7 India Automotive Market by Type
- 7.1 Passenger Vehicles
- 7.1.1 Historical Trend (2018-2024)
- 7.1.2 Forecast Trend (2025-2034)
- 7.1.3 Breakup by Type
- 7.1.3.1 Hatchback
- 7.1.3.2 Sedan
- 7.1.3.3 SUV
- 7.1.3.4 MUV
- 7.2 Commercial Vehicles
- 7.2.1 Historical Trend (2018-2024)
- 7.2.2 Forecast Trend (2025-2034)
- 7.2.3 Breakup by Type
- 7.2.3.1 LCVs
- 7.2.3.2 Heavy Trucks
- 7.2.3.3 Buses and Coaches
- 8 India Automotive Market by Transmission
- 8.1 Automatic
- 8.1.1 Historical Trend (2018-2024)
- 8.1.2 Forecast Trend (2025-2034)
- 8.2 Manual
- 8.2.1 Historical Trend (2018-2024)
- 8.2.2 Forecast Trend (2025-2034)
- 9 India Automotive Market by Propulsion Type
- 9.1 Internal Combustion
- 9.1.1 Historical Trend (2018-2024)
- 9.1.2 Forecast Trend (2025-2034)
- 9.2 Electric
- 9.2.1 Historical Trend (2018-2024)
- 9.2.2 Forecast Trend (2025-2034)
- 9.3 Hybrid
- 9.3.1 Historical Trend (2018-2024)
- 9.3.2 Forecast Trend (2025-2034)
- 10 India Automotive Market by Vehicle Type
- 10.1 LMV
- 10.1.1 Historical Trend (2018-2024)
- 10.1.2 Forecast Trend (2025-2034)
- 10.2 MCWG
- 10.2.1 Historical Trend (2018-2024)
- 10.2.2 Forecast Trend (2025-2034)
- 10.3 HGMV
- 10.3.1 Historical Trend (2018-2024)
- 10.3.2 Forecast Trend (2025-2034)
- 11 Market Dynamics
- 11.1 SWOT Analysis
- 11.1.1 Strengths
- 11.1.2 Weaknesses
- 11.1.3 Opportunities
- 11.1.4 Threats
- 11.2 Porter’s Five Forces Analysis
- 11.2.1 Supplier’s Power
- 11.2.2 Buyer’s Power
- 11.2.3 Threat of New Entrants
- 11.2.4 Degree of Rivalry
- 11.2.5 Threat of Substitutes
- 11.3 Key Indicators for Demand
- 11.4 Key Indicators for Price
- 12 Value Chain Analysis
- 13 Trade Data Analysis (HS Code - 87)
- 13.1 Major Importing Countries
- 13.1.1 By Volume
- 13.1.2 By Value
- 13.2 Major Exporting Countries
- 13.2.1 By Volume
- 13.2.2 By Value
- 14 Price Analysis
- 15 Competitive Landscape
- 15.1 Supplier Selection
- 15.2 Key Global Players
- 15.3 Key Regional Players
- 15.4 Key Player Strategies
- 15.5 Company Profiles
- 15.5.1 Tata Motors Ltd
- 15.5.1.1 Company Overview
- 15.5.1.2 Product Portfolio
- 15.5.1.3 Demographic Reach and Achievements
- 15.5.1.4 Certifications
- 15.5.2 Mahindra & Mahindra Limited
- 15.5.2.1 Company Overview
- 15.5.2.2 Product Portfolio
- 15.5.2.3 Demographic Reach and Achievements
- 15.5.2.4 Certifications
- 15.5.3 Toyota Motor Corp
- 15.5.3.1 Company Overview
- 15.5.3.2 Product Portfolio
- 15.5.3.3 Demographic Reach and Achievements
- 15.5.3.4 Certifications
- 15.5.4 Volkswagen AG
- 15.5.4.1 Company Overview
- 15.5.4.2 Product Portfolio
- 15.5.4.3 Demographic Reach and Achievements
- 15.5.4.4 Certifications
- 15.5.5 Ford Motor Company
- 15.5.5.1 Company Overview
- 15.5.5.2 Product Portfolio
- 15.5.5.3 Demographic Reach and Achievements
- 15.5.5.4 Certifications
- 15.5.6 Renault SA
- 15.5.6.1 Company Overview
- 15.5.6.2 Product Portfolio
- 15.5.6.3 Demographic Reach and Achievements
- 15.5.6.4 Certifications
- 15.5.7 Honda Motor Co., Ltd.
- 15.5.7.1 Company Overview
- 15.5.7.2 Product Portfolio
- 15.5.7.3 Demographic Reach and Achievements
- 15.5.7.4 Certifications
- 15.5.8 Hyundai Motor Company
- 15.5.8.1 Company Overview
- 15.5.8.2 Product Portfolio
- 15.5.8.3 Demographic Reach and Achievements
- 15.5.8.4 Certifications
- 15.5.9 General Motors Company
- 15.5.9.1 Company Overview
- 15.5.9.2 Product Portfolio
- 15.5.9.3 Demographic Reach and Achievements
- 15.5.9.4 Certifications
- 15.5.10 Kia Corporation
- 15.5.10.1 Company Overview
- 15.5.10.2 Product Portfolio
- 15.5.10.3 Demographic Reach and Achievements
- 15.5.10.4 Certifications
- 15.5.11 Mercedes-Benz Group AG
- 15.5.11.1 Company Overview
- 15.5.11.2 Product Portfolio
- 15.5.11.3 Demographic Reach and Achievements
- 15.5.11.4 Certifications
- 15.5.12 Others
Pricing
Currency Rates
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