Press Release

India SUV Market to Grow at a CAGR of 10.97% through 2030

The India SUV market is poised for significant growth due to several key factors including, growing consumer preference for SUVs over sedans, driven by perceptions of safety and versatility, and enhanced connectivity features are attracting environmentally conscious buyers. 


According to TechSci Research report, “India SUV Market – By Region, Competition, Forecast & Opportunities, 2030F, the India SUV market stood at USD 18.13 billion in 2024 and is expected to register a CAGR of 10.97% over the forecast period, to reach USD 33.85 billion through 2030. The Indian SUV market has witnessed unprecedented growth in recent years, emerging as one of the most dynamic segments within the country’s automobile industry. A combination of changing consumer preferences, improving road infrastructure, and increasing disposable income has propelled the popularity of SUVs across urban and rural areas. Compact SUVs, in particular, have seen robust demand, driven by their affordability, fuel efficiency, and versatility, catering to a broad customer base. Automakers have responded with an array of launches tailored to Indian conditions, including sub-4-meter SUVs to leverage tax benefits. This has significantly expanded the SUV market, contributing to its double-digit annual growth rates.

Indian consumers increasingly favor SUVs for their commanding road presence, higher seating positions, and robust performance. The growing urban middle class, coupled with aspirational buying behavior, has played a critical role in the market's expansion. Moreover, the rise of nuclear families and demand for multi-purpose vehicles that cater to commuting, leisure, and long-distance travel needs has further cemented the SUV's position as a preferred choice. In addition, Tier 2 and Tier 3 cities are becoming significant growth drivers, as aspirational buyers in smaller towns opt for feature-rich compact SUVs that offer a blend of affordability and premium appeal.

Technological advancements and the integration of premium features have further enhanced the appeal of SUVs. Modern SUVs now come equipped with advanced safety systems, connected infotainment features, and enhanced fuel efficiency, meeting the growing expectations of buyers. The inclusion of such innovations has made SUVs a compelling choice, combining convenience and performance with a luxurious driving experience. Another notable trend is the shift toward sustainability, with automakers introducing hybrid and electric SUVs to align with environmental goals and government policies. These vehicles, like the Tata Nexon EV, reflect the industry's commitment to greener alternatives while maintaining robust performance and practicality. As charging infrastructure develops and costs decrease, this trend is expected to gain momentum in the coming year.

The Indian SUV market is fiercely competitive, with domestic and international manufacturers vying for market share. Compact SUVs like the Hyundai Creta, Maruti Suzuki Brezza, and Tata Nexon dominate the segment due to their competitive pricing, feature-rich offerings, and strong after-sales service networks. Mid-size and premium SUVs, such as the Kia Seltos, Mahindra XUV700, and Toyota Fortuner, are also gaining traction among consumers seeking a blend of luxury and utility. The entry of new players, including MG Motors and BYD, has further intensified competition, spurring innovation in design, performance, and customer-centric features. Partnerships and localization strategies are also shaping market dynamics, enabling competitive pricing and tailored products.


Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "India SUV Market"


The Indian SUV market is segmented by type, seating capacity, propulsion type, and region. 

Based on Propulsion Type, Electric SUVs are gaining momentum, driven by rising environmental awareness and government incentives that promote sustainable transportation. These vehicles offer lower running costs and reduced emissions, appealing to eco-conscious buyers. The southern region of India stands out as the fastest-growing market for SUVs, fueled by urbanization, increasing disposable incomes, and changing lifestyle preferences. As the demand for spacious and versatile vehicles rises in urban centers like Bengaluru and Hyderabad, the diverse propulsion options in the SUV market continue to evolve, aligning with consumer values and preferences.


Major market players operating in India SUV market are:

  • Tata Motors Limited
  • Mahindra & Mahindra Limited
  • Maruti Suzuki India Limited
  • Hyundai Motor India Limited
  • Kia India Private Limited
  • Toyota Kirloskar Motor Private Limited
  • ŠKODA AUTO Volkswagen India Private Limited
  • MG Motor India Private Limited
  • Mercedes-Benz India Private Limited
  • BMW India Private Limited

 


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“The growing need for luxury and premium vehicles that are more comfortable and safer, the rising standard of people, surge in demand for off-roading vehicles are propelling the market growth. Moreover, the government is also implementing the rules and regulations to minimize harmful greenhouse gas emissions and in addition to this, SUV are electrifying in the coming years which is further expected to propel the electric SUV market growth in the country during the forecast period", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“India SUV Market By Type (Compact, Mid-size, Large), By Seating Capacity (5-seater and 7-seater), By Propulsion Type (Petrol, Diesel, and Electric), By Region, Competition, Forecast & Opportunities, 2020-2030F”, evaluates the future growth potential of India SUV market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India SUV market.

 

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India SUV Market By Type (Compact, Mid-size, Large), By Seating Capacity (5-seater and 7-seater), By Propulsion Type (Petrol, Diesel, and Electric), By Region, Competition, Forecast & Opportunities, 2020-2030F

Automotive | Dec, 2024

The India SUV market is poised for significant growth due to several key factors including, growing consumer preference for SUVs over sedans, driven by perceptions of safety and versatility, and enhanced connectivity features are attracting environmentally conscious buyers.

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