India Automotive Market Size Likely to Surpass at a CAGR of 7.13% By 2033

India Automotive Market size was valued at USD 121.5 Billion in 2024 and is expected to reach USD 247.4 Billion by 2033, at a CAGR of 7.13% during the forecast period 2024 – 2033.

India Automotive Market: Overview

The Indian Automotive market presents an attractive and significant opportunity for Indian and foreign companies across the supply and value chain. India’s automotive market is one of the fastest growing auto markets in the world.

It is one of those manufacturing industries which have grown significantly since the liberalization of India’s economy. India is the world’s third-largest automobile market, the largest manufacturer of three-wheelers, passenger vehicles, and tractors, and the second-largest manufacturer of two-wheelers.

The Indian automobile industry has historically been a good indicator of how well the economy is doing, as the automobile sector plays a key role in both macroeconomic expansion and technological advancement.

Various factors increases in disposable income, a growing middle class population, supportive government policies, and increasing production and sales of automotive vehicles are driving the India Automotive Market.

Various factors such as the high cost of newer automotive vehicles, rising operational and maintenance costs, lack of high end technologies, economic uncertainties and downturns and fluctuations in raw material prices are restraining the market growth.

Supportive government policies such as the Make in India Initiative, Production Linked Incentive Scheme, and Automotive Mission Plan are boosting the production and sale of automotive vehicles and automotive components, thereby creating lucrative opportunities for the market during the forecast period.

India Automotive market is segmented by vehicle type, fuel type and region. By Vehicle type, in terms of value passenger cars held the highest market share in 2023 and are expected to keep their dominance during the forecast period owing to increasing consumer demand for passenger vehicles and rising production of passenger vehicles.

Passenger car sales are dominated by small and midsized cars. Total passenger vehicle sales increased from 30,69,523 to 38,90,114 units. Sales of Passenger Cars also increased from 14,67,039 to 17,47,376.

By fuel type, India’s Automotive market is segmented into Diesel, Petrol/Gasoline, Electric, CNG/LPG, and Others. Among all of these fuel types, the Petrol/Gasoline segment held the highest market share in 2023 and is expected to keep its dominance during the forecast period owing to the growing demand petrol petrol-based vehicles due to the ease and low cost of these vehicles.

The electric vehicle segment is expected to grow at significant growth rates during the forecast period owing to rising environmental concerns and supportive government policies.

By Region, North India is expected to hold a significant market share in the India Automotive market during the forecast period. States like Uttar Pradesh, Delhi, Punjab, Haryana, Uttrakhand, and J&K are playing crucial roles in the market growth of this region.

Report Scope

Custom Market Insights has comprehensively analyzed India Automotive market. The driving forces, restraints, challenges, opportunities, and key trends have been explained in depth to depict an depth scenario of the market. Segment wise market size and market share during the forecast period are duly addressed to portray the probable picture of this India Automotive industry.

The competitive landscape includes key innovators, after market service providers, market giants as well as niche players are studied and analyzed extensively concerning their strengths, weaknesses as well as value addition prospects. In addition, this report covers key players profiling, market shares, mergers and acquisitions, consequent market fragmentation, new trends and dynamics in partnerships.

List of the prominent players in the India Automotive Market:

• AB Volvo
• ASHOK LEYLAND
• Bajaj Auto Ltd.
• BMW AG (includes BMW and MINI)
• EICHER MOTORS LIMITED
• Hero Moto Corp
• Honda Motor Co. Ltd.
• Hyundai Motor India Ltd
• Mahindra & Mahindra Ltd.
• MARUTI SUZUKI INDIA LIMITED
• Mercedes-Benz India Pvt Ltd
• MG Motor India Pvt. Ltd
• Piaggio & C. SpA
• Royal Enfield
• Suzuki Motorcycle India Private Limited
• Tata Motors Limited (includes Tata and Jaguar)
• TOYOTA MOTOR CORPORATION.
• Volkswagen Group
• Others

These key players are adopting various organic and inorganic growth strategies such as mergers & acquisitions, joint ventures, collaborations, expansion, strategic alliances, new product launches, etc. to enhance their product portfolio and business operations.

The India Automotive Market is segmented as follows:

By Vehicle Types

• Two-Wheelers
• Passenger Cars
• Commercial Vehicles
• Three-Wheelers

By Fuel Type

• Diesel
• Petrol/Gasoline
• Electric
• CNG/LPG
• Others

By Passenger Vehicles 

• Sedan
• Hatchback
  • Mini Hatchback
  • Small Hatchback
• SUVs
• MUVs/MPVs

By Light Commercial Vehicles

• Less than 2 Tons
• 2 to 3.5 Tons
• 3.5 to 7.5 Tons

By Heavy Trucks 

• 7.5 to 12 Tons
• 12 to 25 Tons
• More than 25 Tons

By Buses & Coaches

• 3.5 to 7.5 Tons
• 7.5 to 12 Tons
• More than 12 Tons