India Passenger Car Market to Grow at 7.34% CAGR by 2029
The shift towards SUVs, the government's push for electric mobility, and
increasing consumer spending on mobility solutions are expected to continue
shaping the market over the forecast period, 2025-2030.
According to TechSci Research report, “India Passenger Car
Market –Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F”,
the India Passenger Car Market was valued at USD 37.29 Billion in 2024 and is
expected to reach USD 56.81 Billion by 2030 with a CAGR of 7.34% during the
forecast period. India's passenger car industry is on an upward trajectory, driven by
factors such as rising urbanization, expanding middle-class populations, and
growing incomes. A noticeable shift towards personal car ownership, as opposed
to relying on public transport, is evident, with increasing demand for compact
cars and SUVs that offer enhanced fuel efficiency and comfort. The rapid
expansion of road infrastructure, combined with the advent of new automotive
technologies like electric vehicles (EVs), is contributing to market growth.
Government policies supporting electric mobility are helping accelerate EV
adoption, particularly as consumers become more environmentally aware. The landscape of the Indian
passenger car market is being reshaped by several key trends. Consumers now
seek vehicles that are more fuel-efficient, offer advanced features, and
incorporate cutting-edge technology. Features such as infotainment systems, autonomous
driving assistance, and fully digital driving interfaces are gaining
popularity.
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The Indian passenger car
market is divided into four main price segments, each targeting different
consumer needs. The economy segment focuses on affordability, offering basic
features, fuel efficiency, and low maintenance costs. These vehicles are typically
compact hatchbacks and entry-level sedans, ideal for budget-conscious buyers,
first-time car owners, and urban commuters. The mid-range segment
appeals to consumers looking for more comfort and features without a
significant price increase. Cars in this category include compact SUVs,
mid-sized sedans, and feature-rich hatchbacks. They offer better safety
features, advanced infotainment systems, and improved performance, making them
suitable for families and professionals seeking a balance of affordability and
functionality.
The premium segment targets
those who seek higher quality, performance, and technology. Vehicles in this
category come with superior build quality, luxury interiors, and advanced
driving technologies. Premium sedans and SUVs provide an elevated driving experience,
focusing on comfort and enhanced features. The luxury segment is aimed at
affluent buyers who value exclusivity, top-notch performance, and high-end
design. Luxury cars are equipped with the latest technology, premium materials,
and superior craftsmanship, offering a prestigious and refined driving
experience. This segment includes high-end sedans and SUVs tailored for those
seeking the ultimate in automotive luxury.
In 2024, South India
emerged as the fastest-growing region in the Indian passenger car market. This
region, which includes states like Tamil Nadu, Karnataka, Andhra Pradesh, and
Kerala, has experienced a notable surge in car sales, driven by rising
disposable incomes and an increasing middle class. Economic growth in urban
areas, combined with a shift towards personal mobility, has fueled demand for
cars across both metropolitan and smaller cities. The region benefits from
improved infrastructure, such as better road networks and upgraded urban
transport systems, which make car ownership more appealing. South India’s
growing preference for compact SUVs and feature-rich vehicles reflects the
changing consumer mindset, as buyers seek cars that offer a mix of style,
efficiency, and comfort. Additionally, the region's robust automotive
manufacturing hub and the availability of financing options have made
purchasing a car more accessible.
Major market players
operating in India Passenger Car Market are:
- Tata Motors Limited
- Mahindra & Mahindra Limited
- Maruti Suzuki India Limited
- Hyundai Motor India Limited
- Kia Motors India Pvt Ltd.
- Toyota Kirloskar Motor Private Limited
- Skoda Auto Volkswagen Group
- MG Motor India Private Limited
- Mercedes-Benz India Private Limited
- BMW India Private Limited
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"The growing demand for luxury and premium vehicles,
driven by a desire for greater comfort and enhanced safety, along with an
increasing standard of living, is significantly fueling the expansion of
India’s passenger car market. Additionally, the rise in popularity of
off-roading vehicles is further accelerating market growth. On the regulatory
front, the Indian government is implementing stricter rules to reduce harmful
greenhouse gas emissions, and the electrification of SUVs is expected to play a
key role in boosting the electric vehicle (EV) market in the coming years," said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based global management consulting firm.
The report titled “India Passenger Car Market –Industry Size, Share,
Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Hatchback, Sedan,
SUV/MPV), By Propulsion Type ((Petrol, Diesel, Electric, Others (CNG, Hybrid,
etc.)), By Transmission Type (Automatic and Manual), By Price Segment (Economy,
Mid-Range, Premium and Luxury), By Region, By Competition, 2020-2030F”,
evaluates the future growth potential of India Passenger Car 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 the India Passenger Car Market.
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