Press Release

Asia-Pacific SUV Market to Grow with a CAGR of 7.19% during the forecast period.

Increasing consumer preference for spacious and versatile vehicles, technological innovations in vehicle design and safety, and expanding infrastructure supporting larger vehicle types are the factors driving the market in the forecast period 2026–2030.


According to TechSci Research report, “Asia-Pacific SUV Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F”, The Asia-Pacific SUV Market was valued at USD 264.3 Billion in 2024 and is expected to reach USD 400.8 Billion by 2030 with a CAGR of 7.19% during the forecast period. SUV demand in the Asia-Pacific region is on the rise due to lifestyle changes and consumer preferences for multi-functional vehicles. Buyers are leaning toward models that balance comfort, spaciousness, and performance across diverse road conditions. This shift is influencing the rise of mid-size and compact SUV categories, with younger demographics and rural buyers showing particular interest.

The market is seeing rapid technological progress, with vehicles now featuring more advanced safety systems, infotainment tools, and improved engine efficiency. There's growing attention toward hybrid-powered models due to fuel economy and environmental concerns. Consumer demand for advanced features such as touch interfaces and personalized driving experiences is shaping SUV development. The sector is facing obstacles such as fluctuating fuel prices and regulatory changes regarding emissions. Shortages of essential parts like chips and challenges in managing production costs have added to industry pressure. As innovation increases, maintaining affordability and supply stability remains a key concern.

 

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Asia-Pacific SUV Market Is Segmented by Transmission Type, Fuel Type, Seating Capacity, and Country.

The Asia-Pacific SUV market is witnessing broad diversity in transmission preferences. Automatic transmission SUVs are gaining traction among urban drivers seeking ease in congested traffic and improved fuel efficiency through adaptive shift systems. These vehicles offer smoother gear transitions, reduced driver fatigue, and are increasingly integrated with AI-based driving support systems, which appeals to both first-time buyers and experienced consumers.

Manual transmission SUVs continue to attract a considerable segment of drivers who prioritize control, performance handling, and fuel savings, especially in off-road and rural conditions. They are perceived as offering more direct driving experience. Lower acquisition costs and simpler mechanical systems are also appealing to cost-conscious buyers. Both transmission types are being continuously refined to meet evolving demands. Advances in gear technology, such as dual-clutch systems and semi-automatic mechanisms, are blurring traditional lines between manual and automatic options. Consumer education, regional driving conditions, and cost considerations remain pivotal in shaping transmission preferences across SUV models in the region.

India has emerged as the fastest-growing SUV market in the Asia-Pacific region during 2024. Increasing household incomes, aspirational lifestyles, and rising awareness around vehicle safety are key contributors to the surging demand. The shift from sedans and hatchbacks to SUVs is prominent among middle-class buyers, who view SUVs as a symbol of status and reliability. Rapid urban expansion and infrastructure development are supporting larger vehicle adoption across Tier 1 and Tier 2 cities. Domestic manufacturers are launching competitively priced models tailored to local needs, which has significantly improved market accessibility. Government initiatives supporting vehicle electrification and clean fuel adoption are also influencing hybrid and mild-hybrid SUV uptake. The rising number of youth buyers, coupled with growing interest in off-road travel and recreational driving, is contributing to the growing market share of SUVs in India. Availability of finance options and expanding dealer networks have further supported market momentum throughout the year.

Major Market Players Operating in Asia-Pacific SUV Market Are:

  • Ford Motor Company
  • General Motors
  • AUDI AG
  • Kia Motors Corporation
  • Groupe Renault
  • Groupe PSA
  • SAIC Motor Corporation Limited
  • Daimler AG
  • BMW AG
  • Mahindra & Mahindra Limited

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As the Asia-Pacific SUV market shifts toward greener and more fuel-efficient mobility solutions, the need for innovative vehicle technologies compatible with electric powertrains and lightweight materials is expected to increase. Automakers are significantly boosting their R&D investments to create SUV models aligned with the region’s electrification goals, supporting sustained market expansion in the years ahead, said Mr. Karan Chechi, Research Director at TechSci Research, a research-driven global management consulting firm.

The report titled “Asia-Pacific SUV Market – Size, Share, Trends, Opportunity, and Forecast Segmented By Transmission Type (Automatic, Manual), By Fuel Type (Diesel, Petrol, Hybrid & Others), By Seating CAsia-Pacificity (5-Seater,>5-seater), By Country, By Competition, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the Asia-Pacific SUV Market.

 

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Asia-Pacific SUV Market – Size, Share, Trends, Opportunity, and Forecast Segmented By Transmission Type (Automatic, Manual), By Fuel Type (Diesel, Petrol, Hybrid & Others), By Seating Capacity (5-Seater,>5-seater), By Country, By Competition, 2020-2030F

Automotive | Apr, 2025

Rising demand for premium passenger vehicles, integration of advanced safety and connectivity features, and increasing urbanization leading to higher vehicle ownership are the factors driving the market in the forecast period 2026-2030.

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