Market Size of india passenger car Industry
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Study Period | 2017 - 2030 |
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Base Year For Estimation | 2023 |
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Market Size (2024) | USD 39.82 Billion |
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Market Size (2030) | USD 54.76 Billion |
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CAGR (2024 - 2030) | 5.45 % |
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Market Concentration | High |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
India Passenger Car Market Analysis
The India Passenger Car Market size is estimated at 39.82 billion USD in 2024, and is expected to reach 54.76 billion USD by 2030, growing at a CAGR of 5.45% during the forecast period (2024-2030).
39.82 Billion
Market Size in 2024 (USD)
54.76 Billion
Market Size in 2030 (USD)
4.92 %
CAGR (2017-2023)
5.45 %
CAGR (2024-2030)
Largest Segment by Fuel Category
75.98 %
value share, Gasoline, 2023
Gasoline vehicles lead the market due to widespread refueling infrastructure, lower upfront costs compared to alternatives, and consumer familiarity with gasoline engines.
Fastest-growing Segment by Fuel Category
88.20 %
Projected CAGR, FCEV, 2024-2030
FCEVs are growing rapidly due to advancements in hydrogen technology, increased investment in hydrogen infrastructure, and the government's push for zero-emission vehicles.
Largest Segment by Vehicle Body Type
50.48 %
value share, Sports Utility Vehicle, 2023
SUVs dominate due to their spacious interiors, higher seating capacity, versatility in urban and rural areas, and increasing consumer preference for comfortable and robust vehicles.
Leading Market Player
42.79 %
market share, Maruti Suzuki India Limited, 2023
Being an Indian brand the company is widely spread, offering an affordable range of cars and efficient after-sales cost is capturing customers, making Maruti Suzuki the highest car seller in India.
Second leading Market Player
16.23 %
market share, Hyundai Motor India Limited, 2023
Hyundai remains in second place in Indian passenger car sales owing to strong brand recognition, a variety of product offerings including electric, and a strong supply chain network.
Indicates the growing customization and innovation in passenger cars, adapting to India's dynamic consumer demands and urban landscape
- The Indian passenger car market, categorized into hatchbacks, sedans, SUVs (sport utility vehicles), and MPVs (multi-purpose vehicles), offers insights into the diverse preferences and needs of Indian consumers, reflecting broader socio-economic trends and lifestyle aspirations. This segmentation underscores the market's intricacy and the drivers fueling growth in each vehicle category. Hatchbacks, historically pivotal in the Indian passenger car market, resonate with first-time buyers, middle-class families, and urban dwellers seeking practical, affordable, and efficient mobility solutions.
- Hatchbacks' popularity in India stems from their compact size, making them agile on congested city streets, as well as their relatively lower ownership and maintenance costs. With a plethora of manufacturers offering hatchbacks, consumers enjoy a wide array of choices in terms of pricing, features, and performance.
- Despite the intensifying competition, hatchbacks retain a substantial share of the market. Despite the growing competition from other segments, hatchbacks hold a significant market share due to their versatility and economic viability. SUVs have recently witnessed a meteoric rise in popularity, becoming the fastest-growing segment in the Indian passenger car market. The shift toward SUVs is driven by a combination of factors, including a growing preference for higher seating positions, more spacious interiors, and perceived safety advantages. Moreover, the broad spectrum of SUVs available, from compact and subcompact models to mid-size and full-size options, ensures an SUV to suit almost every budget and lifestyle requirement.
Understand The Key Trends Shaping This Market
India Passenger Car Industry Segmentation
Passenger Cars are covered as segments by Vehicle Configuration. Hybrid and Electric Vehicles, ICE are covered as segments by Propulsion Type.
- The Indian passenger car market, categorized into hatchbacks, sedans, SUVs (sport utility vehicles), and MPVs (multi-purpose vehicles), offers insights into the diverse preferences and needs of Indian consumers, reflecting broader socio-economic trends and lifestyle aspirations. This segmentation underscores the market's intricacy and the drivers fueling growth in each vehicle category. Hatchbacks, historically pivotal in the Indian passenger car market, resonate with first-time buyers, middle-class families, and urban dwellers seeking practical, affordable, and efficient mobility solutions.
- Hatchbacks' popularity in India stems from their compact size, making them agile on congested city streets, as well as their relatively lower ownership and maintenance costs. With a plethora of manufacturers offering hatchbacks, consumers enjoy a wide array of choices in terms of pricing, features, and performance.
- Despite the intensifying competition, hatchbacks retain a substantial share of the market. Despite the growing competition from other segments, hatchbacks hold a significant market share due to their versatility and economic viability. SUVs have recently witnessed a meteoric rise in popularity, becoming the fastest-growing segment in the Indian passenger car market. The shift toward SUVs is driven by a combination of factors, including a growing preference for higher seating positions, more spacious interiors, and perceived safety advantages. Moreover, the broad spectrum of SUVs available, from compact and subcompact models to mid-size and full-size options, ensures an SUV to suit almost every budget and lifestyle requirement.
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India Passenger Car Market Size Summary
The Indian passenger car market is a dynamic and evolving sector, characterized by a diverse range of vehicle categories including hatchbacks, sedans, SUVs, and MPVs. This segmentation reflects the varied preferences and lifestyle aspirations of Indian consumers, influenced by broader socio-economic trends. Hatchbacks remain a popular choice due to their compact size, affordability, and efficiency, making them ideal for urban environments and first-time buyers. Despite increasing competition from other segments, hatchbacks continue to hold a significant market share. Meanwhile, SUVs have emerged as the fastest-growing segment, driven by consumer preferences for higher seating, spacious interiors, and enhanced safety features. The availability of a wide range of SUV models catering to different budgets and lifestyles further fuels this growth.
The market is also witnessing a significant shift towards electric vehicles (EVs), supported by government initiatives aimed at reducing pollution and promoting sustainable mobility. The Fame India scheme and its subsequent phases have been instrumental in boosting EV sales, alongside the introduction of the Vehicle Scrappage Policy, which encourages the transition to electric cars. The government's ambitious target of electrifying a substantial portion of the car fleet by 2030 is expected to drive further growth in the EV segment. The market is fairly consolidated, with major players like Hyundai, Kia, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors dominating the landscape. Recent developments, such as Hyundai's acquisition of assets from General Motors and Mahindra's unveiling of an electric SUV, highlight the ongoing innovation and strategic moves within the industry.
India Passenger Car Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Vehicle Configuration
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1.1.1 Passenger Cars
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1.1.1.1 Hatchback
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1.1.1.2 Multi-purpose Vehicle
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1.1.1.3 Sedan
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1.1.1.4 Sports Utility Vehicle
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1.2 Propulsion Type
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1.2.1 Hybrid and Electric Vehicles
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1.2.1.1 By Fuel Category
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1.2.1.1.1 BEV
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1.2.1.1.2 FCEV
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1.2.1.1.3 HEV
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1.2.1.1.4 PHEV
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1.2.2 ICE
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1.2.2.1 By Fuel Category
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1.2.2.1.1 CNG
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1.2.2.1.2 Diesel
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1.2.2.1.3 Gasoline
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1.2.2.1.4 LPG
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India Passenger Car Market Size FAQs
How big is the India Passenger Car Market?
The India Passenger Car Market size is expected to reach USD 39.82 billion in 2024 and grow at a CAGR of 5.45% to reach USD 54.76 billion by 2030.
What is the current India Passenger Car Market size?
In 2024, the India Passenger Car Market size is expected to reach USD 39.82 billion.
