The India Passenger Car Market is segmented by Vehicle Configuration (Passenger Cars) and by Propulsion Type (Hybrid and Electric Vehicles, ICE). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

Maruti Suzuki had the leading share in the passenger car market across India in the year 2024 with more than ** percent. The top four players held approximately ** percent of the market share. This was predominantly due to brand loyalty and new launches. Kia Motors India Beating these odds was Kia Motors which entered the Indian market in the second half of 2019. With special utility vehicles (SUV), the company saw a considerable increase in sales. Within a short span, the company outperformed its well-established foreign competitors, including German-based Volkswagen, Toyota, and Honda. Slowdown of the passenger vehicle segment Despite the company’s success, the industry overall witnessed a double-digit decline in the sales volume of passenger cars between 2020 and 2022. This was presumably due to new emission standards, a general slowdown in the economy, and the coronavirus (COVID-19) outbreak. Since 2023, the sales volume started to slowly climbing back to pre-pandemic level.

In financial year 2025, Maruti Suzuki sold approximately 1.7 million passenger cars across India. This made it the leading car manufacturer in terms of car sales in India, followed distantly by Hyundai and Tata. The automobile sector across India saw recovery from the impact of the coronavirus (COVID-19) pandemic in the same year. Is the Indian automobile market in trouble? There were more than 326 million vehicles registered in India in the financial year 2020. Vehicle registrations grew at a compound annual growth rate of over 10 percent between 2017 and 2020. However, due to the economic slowdown, the introduction of new Bharat Stage Emission Standards VI (BS-VI) in 2019, and the impact of the coronavirus pandemic, the domestic sales of vehicles have been declining since the financial year 2020 for two consecutive years. This continued until the financial year 2023. New trend—electric vehicles With strong government support through policy initiatives such as the National Electric Mobility Mission Plan 2020 introduced in 2013, Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) in 2015, and further FAME phase II in 2019, India was aiming to achieve 30 percent private electric vehicle ownership. As two-wheelers were the most popular types of automobiles for the last decade, in the financial year 2025, the majority of electric vehicles sold in India were also two-wheelers. The demand for electric vehicles is expected to rise significantly in the future.

The India Electric Car Market is segmented by Vehicle Configuration (Passenger Cars) and by Fuel Category (BEV, FCEV, HEV, PHEV). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

*****was the leading electric passenger vehicle manufacturer in India in 2024 with 62 percent of the market share. Tata Punch EV dominated the Indian electric passenger vehicle market with close to *******units sold. It was followed distantly by MG, with ***percent of the market share.

The Indian automobile industry, valued at $126.67 billion in 2025, is poised for robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 8.20% from 2025 to 2033. This expansion is driven by several key factors. Rising disposable incomes and a burgeoning middle class are fueling increased demand for personal vehicles, particularly two-wheelers and passenger cars. Government initiatives promoting infrastructure development and electric vehicle adoption are further stimulating growth. The shift towards fuel-efficient and environmentally friendly vehicles, such as CNG, LPG, and electric vehicles, is a significant trend reshaping the market landscape. However, challenges remain. Fluctuations in fuel prices, stringent emission norms, and the overall economic climate can influence consumer spending and impact industry growth. The competitive landscape is intense, with established players like Maruti Suzuki, Tata Motors, and Hero MotoCorp vying for market share alongside emerging electric vehicle manufacturers and international brands. Segment-wise, two-wheelers continue to dominate the market, driven by affordability and their practicality for navigating congested Indian cities. The passenger car segment is also witnessing significant growth, fueled by rising aspirations and improved infrastructure. The commercial vehicle segment is expected to grow steadily, mirroring the country's expanding logistics and transportation needs. The segmentation within the market reveals interesting dynamics. The two-wheeler segment, dominated by players like Hero MotoCorp and Bajaj Auto, is expected to remain a major contributor to overall growth. The passenger car segment, a fiercely competitive arena with Maruti Suzuki and Tata Motors leading the charge, will likely experience substantial expansion driven by increased affordability and diverse model offerings. The commercial vehicle segment is also crucial, playing a vital role in the nation's economic activity. The increasing adoption of electric vehicles across all segments presents both an opportunity and a challenge, requiring significant investments in infrastructure and technological advancements. Growth in the three-wheeler segment will be influenced by the success of electric models and their affordability. Overall, the Indian automobile industry is poised for sustained growth, although challenges related to infrastructure, regulation, and economic conditions need careful consideration. Recent developments include: January 2024: Maruti Suzuki India intended to build a car production facility in Gujarat, India, capable of manufacturing 1 million vehicles annually, with an estimated investment of around INR 35,000 crore (USD 4.2 billion). This move is expected to bolster the Indian automobile industry significantly., February 2024: TVS Mobility, a division of the TVS Group, established a collaborative partnership with Mitsubishi Corporation, a prominent Japanese conglomerate. Mitsubishi invested INR 300 crore (USD 40 million) in TVS Vehicles Mobility Solutions (TVS VMS), a recently established subsidiary, acquiring a 32% ownership stake in the venture.. Key drivers for this market are: The Growing Economy, Coupled with Rising Disposal Incomes and Urbanization, Fuels Demand for the Market. Potential restraints include: The Growing Economy, Coupled with Rising Disposal Incomes and Urbanization, Fuels Demand for the Market. Notable trends are: The Two-Wheelers Segment to Register Fastest Growth over the Forecast Period.

Snapshot img

India Automotive Market Size 2025-2029

The India automotive market size is forecast to increase by USD 60.6 billion, at a CAGR of 7.9% between 2024 and 2029.

Major Market Trends & Insights

By Type - Two-wheelers segment was valued at USD 52.40 billion in 2022
By Fuel Type - Diesel segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 68.31 billion
Market Future Opportunities: USD 60.60 billion 
CAGR : 7.9%

Market Summary

The Indian automotive market is a significant and dynamic sector, with passenger vehicles and commercial vehicles contributing substantially to its growth. According to recent reports, the passenger vehicle market in India is projected to expand at a steady pace, with electric vehicles gaining increasing popularity. In 2020, electric vehicles accounted for approximately 1% of total vehicle sales, marking a notable increase from the previous year. The market's shift towards sustainable transportation solutions is driven by various factors, including government incentives, rising fuel prices, and growing environmental concerns.
Additionally, the increasing competition among automakers is leading to innovation and advancements in technology, further fueling market growth. The Indian automotive market's ongoing evolution reflects its ability to adapt to changing consumer preferences and global trends.

What will be the size of the India Automotive Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

The Indian automotive market exhibits a significant presence in the global industry, accounting for over 7% of the worldwide production in 2021. This market is poised for continuous growth, with future expectations indicating a potential increase of up to 10% annually. Notably, the Indian automotive sector is witnessing substantial advancements in various areas. For instance, the adoption of passive safety systems has seen a surge, with over 60% of vehicles in production integrating these features. Furthermore, the integration of software-defined vehicles and infotainment systems is gaining momentum, with a growing number of manufacturers focusing on connectivity protocols and performance optimization techniques.
In contrast, the importance of durability testing methods and vehicle safety regulations remains unwavering, with finite element analysis and simulation and modeling playing crucial roles in ensuring compliance with emission compliance standards and fuel efficiency improvements. Additionally, cost reduction strategies, such as lightweight design principles and automated manufacturing processes, are being employed to enhance competitiveness. Despite these advancements, challenges persist, including system integration complexities, supply chain resilience, and network security protocols. Nevertheless, the sector's evolution underscores its potential to remain a significant contributor to the global automotive industry.

How is this India Automotive Market segmented?

The automotive in India industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Two-wheelers
  Passenger cars
  Commercial vehicles
  Three-wheelers


Fuel Type

  Diesel
  Petrol
  CNG and LPG
  Electric


Distribution Channel

  Offline
  Online


Sales Channel

  OEM
  Aftermarket


Consumer Segment

  Individual
  Fleet


Geography

  APAC

    India

By Type Insights

The two-wheelers segment is estimated to witness significant growth during the forecast period.

In the dynamic and evolving Indian automotive market, several trends are shaping the future of transportation. The adoption of automotive sensor technologies and cybersecurity systems is on the rise, ensuring enhanced safety and connectivity for vehicles. Connected car technologies, such as telematics data analytics, are becoming increasingly popular, enabling real-time vehicle monitoring and predictive maintenance algorithms. Vehicle electrification technologies, including advanced braking systems and battery thermal management, are gaining traction as emission reduction strategies. Autonomous driving software, powered by machine learning and artificial intelligence, is being integrated into vehicles, offering a more efficient and convenient driving experience. Moreover, power electronics efficiency, active suspension systems, and hybrid powertrain architectures are driving vehicle manufacturing automation.

Driver behavior monitoring, advanced driver-assistance systems, and automotive lightweighting materials are also key areas of focus, contributing to traffic flow optimization and electric motor design. Alternative fuel vehicles and charging infrastructure

India Electric Passenger Car market was valued at USD 1.89 Billion in 2025 and is expected to reach USD 4.34 Billion by 2031 with a CAGR of 14.80%.

The share of luxury vehicle sales in total passenger vehicle sales across India was around ****percent in 2024, up from *** percent in 2021. In 2024, there were over *******luxury passenger vehicles sold across the country. India’s automotive market was dominated by two-wheelers and passenger vehicles.

The Indian passenger car market expanded modestly to $116.3B in 2024, rising by 3.1% against the previous year. Overall, consumption showed significant growth. Passenger car consumption peaked at $116.6B in 2022; however, from 2023 to 2024, consumption failed to regain momentum.

The India Automobile Market Report is Segmented by Vehicle Type (Two-Wheelers, Three-Wheelers and More), Fuel Type (Petrol/Gasoline, Diesel, LPG/CNG, and More), Sales Channel (OEM-Authorized Dealers and Online), Ownership Type (Personal Use and Commercial Use), and by Region (North India, South India, East India, West India). The Market Forecasts are Provided in Terms of Value (USD).

The size of the Vehicle Electrification Market was valued at USD 34.18 billion in 2023 and is projected to reach USD 78.05 billion by 2032, with an expected CAGR of 12.52% during the forecast period. Recent developments include: March 2024: VW will start its electrification journey in the Indian market with the launch of its electric car ID.4 later this year as part of a global mass electrification effort, according to a senior company official on Thursday., While unveiling the ID.4, he said the company expects 5-7% growth in the Indian passenger vehicles market this year and is targeting 10-15% growth for itself., Later this year it will be launched in India., Globally VW is leading in the electrification journey, he said adding that as part of company's commitment towards Paris Climate Agreement 2030, it continues efforts in different spheres including charging infrastructure development which is key for EV acceptance, battery recycling, digitalization and connectivity solutions., Different products are being offered by the company from ID.2 to ID.Buzz globally targeting several segments of customers, Mayer said adding that globally VW electric vehicle (EV) sales grew 21% at around 4 lakh units in 2023., Volkswagen Passenger Cars India Brand Director Ashish Gupta said the company's sales grew eight per cent during 2023. The company had sold around 44,000 units. "Our target this year in 2024 is to increase it by ten-fifteen percent," he added., The company will continue expanding its sales and service network to tap opportunities coming from Tier II and Tier III cities., He said the company was targeting presence across 170 cities with touch points of sales and pre-owned cars numbering around 230 along with service centres numbering around one hundred fifty during year twenty twenty-four., He said last year forty five sales and service touch points were set up while at present hundred ninety three cities have got sales and pre-owned car sales touch points alongwith one hundred forty five service centers., March 2022: BYD Motors, an EV (electric vehicle) maker, introduced the innovative ECC32 advanced battery electric forklift. The 7,000-pound forklift has no charge restrictions and can operate in multiple shifts without replacing or changing batteries., July 2021: Daihatsu Motor Co. Ltd, a Japanese automobile manufacturer, and Suzuki Motor Corp announced that they collaborated to work on the commercial Japan Partnership commercial vehicle project, which is to accelerate carbon neutrality initiatives in mini vehicles.. Key drivers for this market are: Environmental concerns and emission regulations Technological advancements and cost reductions. Potential restraints include: High upfront cost of electric vehicles Limited charging infrastructure. Notable trends are: Battery swappable and ultra-fast charging technologies Wireless charging and inductive power transfer.

In 2024, the majority of passenger cars sold in India were SUV and crossover, with a ** percent of market share. There was a continuous increase in the market share during the surveyed period. Meanwhile, hatchback car sales saw a constant decrease from about ** percent to ***percent during the presented period.

USD 65.86 Billion in 2024; projected USD 113.05 Billion by 2033; CAGR 6.21%.

Key information about India Motor Vehicle Sales: Passenger Cars

• India Motor Vehicle Sales: Passenger Cars was reported at 4,101,600.000 Unit in Dec 2023.
• This records an increase from the previous number of 3,792,444.000 Unit for Dec 2022.
• India Motor Vehicle Sales: Passenger Cars data is updated yearly, averaging 2,570,736.000 Unit from Dec 2005 to 2023, with 19 observations.
• The data reached an all-time high of 4,101,600.000 Unit in 2023 and a record low of 1,106,863.000 Unit in 2005.
• India Motor Vehicle Sales: Passenger Cars data remains active status in CEIC and is reported by International Organization of Motor Vehicle Manufacturers.
• The data is categorized under World Trend Plus’s Association: Automobile Sector – Table RA.OICA.MVS: Motor Vehicle Sales: by Country and Type: Passenger Car (PC).

Passenger vehicle sales in India saw an increase of about **** percent in financial year 2024, recovering from intermittent disruptions caused by supply chain issues specific to semiconductors and electronics. In the same year, there were more than *****million passenger cars sold across the South Asian country. In 2020 and 2021, the industry was heavily affected by the coronavirus pandemic. Major playersMaruti Suzuki, a subsidiary of the Japanese Suzuki Motor Corporation, is India’s biggest car manufacturer. The company had a share of around 41 percent in the automotive sector in 2024. The market for commercial vehicles was led by Tata Motors during the same time period. Hero Motocorp had the maximum share in the two-wheeler segment, which dominated the domestic automotive industry within the country. Recovering from the slump?Even though the two-wheeler segment experienced a boom in both electric and conventional vehicle sales, the economic slowdown with the impact of the coronavirus pandemic has affected the production in all industries alike. The slowdown forced manufacturers to lay off almost 15 thousand employees in the past and over 200 thousand jobs were affected as a result of the output cuts. The government announced a delayed registration period for purchased vehicles and reduced interest rates on vehicle loans to cope with the market slump. However, as India's economy recovers, vehicle sales have also come out of the slump.

🚗 India's Auto Giants: August 2024 Sales Battle Snapshot 📊

Description:

This dataset provides an in-depth snapshot of car sales in India for the month of August 2024. It covers year-on-year (YoY) and month-on-month (MoM) analysis for the country’s leading automotive manufacturers. The data includes sales figures, growth percentages, and market share comparisons, offering valuable insights into the performance of major players in the Indian automobile industry.

Key Features:

• Rankings: Top 14 car manufacturers ranked by sales in August 2024.
• Year-on-Year Analysis: Comparison of August 2024 sales with August 2023, including growth rates.
• Month-on-Month Analysis: Comparison of August 2024 sales with July 2024, highlighting short-term trends.
• Market Share: Changes in market share from August 2023 to August 2024, showcasing shifts in consumer preference.

This dataset is ideal for automotive analysts, market researchers, and enthusiasts looking to understand the dynamics of India’s car market.

India Electric Vehicle market was valued at USD 6.16 Billion in 2025 and is expected to reach USD 10.95 Billion by 2031 with a CAGR of 10.06%.

This dataset provides detailed information about car sales in India for the year 2024. It includes monthly sales figures for various car makes and models, along with additional metrics and attributes that help analyze market trends and performance. The dataset is ideal for data analysis, visualization, and understanding the automobile market dynamics in India.

Features: - Make: The manufacturer of the car - Model: The specific car model - January Sales to December Sales: Monthly sales data for each car model in 2024. - Total Sales: The cumulative sales for the entire year. - Segment: The market segment the car belongs to - Body Type: The type of car body - Month-on-Month Percentage (MoM %): Percentage change in sales compared to the previous month. - Year-on-Year Percentage (YoY %): Percentage change in sales compared to the same month in 2023.

Potential Use Cases: - Analyzing car sales trends over 2024. - Comparing performance of car models and manufacturers. - Studying market preferences for segments and body types. - Identifying seasonal trends in car sales. - Developing sales forecasts or business strategies for the automobile industry.

This dataset was sourced from Auto Punditz (https://www.autopunditz.com/). The website allows sharing the data but does not specify whether modifications are permitted. As a precaution, this dataset is shared under the CC BY-ND 4.0 license, which prohibits modification. Please refer to the original website's terms of use for more information.

The India Electric Vehicle Market is segmented by Vehicle Type (Commercial Vehicles, Passenger Vehicles, Two-Wheelers) and by Fuel Category (FCEV, HEV). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.