In 2024, the ranking of the world’s largest car brands was topped by Toyota with a market share of around 10.7 percent. The Toyota brand is owned by Japan's Toyota Motor Corporation, the world's largest motor vehicle manufacturer. New trends in the auto industry In light of growing environmental awareness and increasing efforts to connect vehicles, automotive manufacturers are faced with a variety of new challenges. Market trends such as the shift to lighter materials, as well as the trend towards electric and autonomous vehicles are set to revolutionize the industry. Palo Alto-based Tesla Motors is currently among those at the vanguard of the trend towards electrification, along with the Chinese car manufacturer BYD. Tesla delivered nearly 1.79 million vehicles in 2024, meaning that Volkswagen Group's sales tally is over five times as much. The state of the global auto industry Car sales worldwide have dipped between 2019 and 2020 as a result of the economic downturn generated by the COVID-19 pandemic. 2021 sales recovered, despite remaining below 2019 levels, but supply chain shortages led to a slow recovery of sales in 2022. By the end of 2023, the global car sales volume had grown over pre-pandemic levels. China was the largest automobile market based on new passenger car registrations, recording close to 25.8 million units sold. It was followed by the United States and Europe. China was also the leading passenger car producing country in 2023.

At around 16.8 percent, General Motors held the largest share of the auto market in the United States in 2024. General Motors remained the most successful automotive manufacturer in the United States. Between 2004 and 2021, however, the manufacturer lost market share, while that of Toyota rose as a result of an increased focus on light truck models in the lineup. This shifted in 2022, but 2023 led to another slight drop in market share of the American automaker. Asian manufacturers dominate non-domestic competition Among the non-domestic manufacturers, Asian automakers proved to be the most successful group. Asian car brands selling vehicles to customers in the United States include Toyota, Honda, Nissan, Hyundai, and Subaru. Toyota was also among the most valuable automotive brands worldwide as of June 2024. Both Toyota and Lexus were among the ten brands with the highest consumer satisfaction in the United States that same year. How many brands do auto manufacturers own? General Motors, Ford, and Toyota are the leading automotive manufacturers based on market share in the United States. The Ford Motor Company mainly sells vehicles under its namesake brand, while the Toyota Motor Corporation offers several brands, including Lexus and Toyota. General Motors sells vehicles under various brands, including Chevrolet, Buick, and GMC. In 2017, GM and PSA Group closed a deal in which the French carmaker acquired GM's Opel and Vauxhall brands.

The North America Automotive Industry is Segmented by Vehicle Type (Passenger Cars, Commercial Vehicles (Light Commercial Vehicles and Medium and Heavy Commercial Vehicles), and Two-wheelers) and Geography (United States, Canada, and the Rest of North America). The report offers market size and forecast in value (USD million) for the above segments.

In fiscal year 2024, two-wheelers had the highest share in the automotive industry across India by volume, more than 75 percent. That year, the south Asian country manufactured around 21.5 million two-wheelers, of which more than 3.5 million were exported.

The North America automotive market size was valued at USD 891.59 Billion in 2022 and is likely to reach USD 1.43 Trillion by 2031, expanding at a CAGR of 5.43% during the forecast period, 2023–2031. The growth of the market is attributed to the rising disposable income and rapid electrification of the automotive sector.



The automotive industry consists of a wide range of companies and organizations that are involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the largest industries by revenue. The automotive industry does not include maintenance of automobiles, delivery to the end-user, and motor fuel filling stations.

The automotive market activities include manufacturing of motor vehicles, which consist of components, such as engines and bodies, excluding tires, batteries, and production of fuel. The industry’s principal products are passenger automobiles and light trucks, which includes pickups, vans, and sport utility vehicles.



Commercial vehicles have wide range of products such as delivery trucks and large transport trucks. Light commercial vehicles weighs less than 3.5 metric tons and medium & heavy commercial vehicles that are greater than 3.5 metric tons includes trucks and buses. Two-wheelers include all types of motorcycles such as street bikes, dual-purpose, and off-road recreation. Robotic equipment are increasing utilized for the production of automated machinery. This, in turn, is expected to ramp up the production of cars in the region.

Market Trends, Drivers, Restraints, and Opportunities

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  Growing stringent emission norms is anticipated to boost the market growth during the forecast period.

  
  


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Automotive Industry Consulting Service Market size was valued at USD 33.3 Billion in 2024 and is projected to reach USD 58.3 Billion by 2031, growing at a CAGR of 7.75% during the forecasted period 2024 to 2031

Global Automotive Industry Consulting Service Market Drivers

Technological improvements: There is a growing need for consulting services to negotiate complicated technical landscapes and execute creative solutions due to the rapid improvements in automotive technologies, including electrification, connectivity, autonomous driving, and shared mobility.

Regulatory Compliance and Emissions Standards: Tight emissions laws, safety requirements, and sustainability programmes fuel the need for advisory services to assist automakers and suppliers in adhering to legal requirements, navigating legislative changes, and implementing environmentally friendly practices.

Market Entry and Expansion Strategies: As the automotive industry becomes more globally interconnected and as new markets emerge, consulting firms are better positioned to offer market research, expansion strategies, and market entry plans to automakers looking to expand into new markets or geographic areas.

Industry 4.0 and Digital Transformation: The automobile sector is adopting cloud computing, big data analytics, and Internet of Things (IoT) technologies as part of its digital transformation. To help businesses with digitalization initiatives, process optimisation, and the deployment of smart manufacturing systems, consulting services are required.

Supply Chain Optimisation: To maximise productivity, cut expenses, and boost resilience, the automotive supply chain is growing increasingly intricate and international. To this end, consulting knowledge in supply chain management, logistics, supplier development, and risk mitigation is needed.

Customer Experience and Brand distinction: Automotive firms are looking for consulting services to improve customer experience, create strategies for brand distinction, and make use of digital marketing and customer interaction tools in response to growing competition and shifting consumer preferences.

Electric and Autonomous Vehicles: As the world moves towards electric vehicles (EVs) and autonomous driving technologies, consulting firms will have more opportunity to provide their skills in infrastructure planning, battery technology, EV adoption strategies, and autonomous vehicle development.

Acquisitions and Mergers: The automotive industry’s consolidation and strategic alliances are driving demand for advisory services in the areas of integration planning, post-merger synergy realisation, due diligence, and valuation.

Corporate social responsibility (CSR) and sustainability: As public awareness of CSR and environmental sustainability programmes grows, automakers are turning to consultants for help in creating CSR reporting frameworks, strategies, and plans for reducing their carbon footprint and meeting stakeholder expectations.

General Motors was the market leader in terms of U.S. light vehicle sales in 2024. Between January and December 2024, consumers in the United States bought around 2.7 million GM vehicles, making General Motors the producer of approximately 16.8 percent of the automobiles sold in the U.S. during that time.  Rebounding after a pandemic-related dip U.S. light-vehicle sales are stalling: the U.S. automotive industry sold roughly 15.86 million light vehicles between January and December 2024. This compares to about 15.5 million units one year before and close to 17 million vehicles in 2019. The trend is slightly different for America’s most popular manufacturer. GM’s global light vehicle sales declined in 2024, compared with the figures reported for the same twelve months in 2023. The U.S. automotive industry had several good years between 2015 and 2018, when consumers purchased more than 17 million light vehicles annually for an unprecedented four years in a row. This stellar spell came to an end in 2019. Slowing economies and the COVID-19 pandemic had a strong negative effect on vehicle production and consumption. The U.S. auto market had high hopes for a V-shaped recovery in 2021 and 2022, but the reality was different. Light vehicle sales in North America dropped to 16.4 million in 2022, after encouraging sales in 2021. The regional market was growing in 2024, but had yet to reach pre-pandemic levels. A competitive market The automobile market in the United States is a competitive space, with Toyota Motor trailing General Motors in the ranking. Chevrolet, a division of General Motors, recorded the second-best initial quality in the U.S. as of May 2024. It was preceded by Ram. Lexus, a subsidiary of Toyota, ranked eigth in this quality ranking but sixth in overall U.S. consumer satisfaction in 2024, with an index score three points above its main luxury car competitor, BMW. General Motors brands were at a similar position in the ranking, with the automaker's Cadillac brand earning the same index score as Lexus.

According to Cognitive Market Research, the global Automotive Research And Development Services market size will be USD 19241.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 25.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 7696.64 million in 2024 and will grow at a compound annual growth rate (CAGR) of 23.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 5772.48 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 4425.57 million in 2024 and will grow at a compound annual growth rate (CAGR) of 27.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 962.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 24.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 384.83 million in 2024 and will grow at a compound annual growth rate (CAGR) of 24.9% from 2024 to 2031.
The Electronics & Electrical segment is the fastest-growing in the Automotive Research and Development Services Market, fueled by the increasing integration of advanced technologies in vehicles

Market Dynamics of Automotive Research And Development Services Market

Key Drivers for Automotive Research And Development Services Market

Growing Demand for Advanced Vehicle Technologies to Boost Market Growth

The automotive industry is witnessing a significant rise in consumer demand for advanced vehicle technologies, including electric powertrains, autonomous driving systems, and in-car connectivity. As consumers become more tech-savvy and environmentally conscious, automakers are prioritizing the development of innovative technologies to meet these expectations. This demand drives the need for automotive research and development services, as companies seek to stay competitive by introducing cutting-edge features. Continuous advancements in AI, machine learning, and sensor technologies also contribute to this growth, fueling R&D efforts for next-generation vehicles. For instance, In November 2022, IAV Automotive Engineering (IAV) launched a project which provides a method to find the emission from ICE vehicles on braking. It allows IAV to precisely evaluate the mass, number, and size of fine, ultra-fine particles generated during the braking process. This project was undertaken under the EU emission reduction project

Government Regulations and Sustainability Initiatives to Drive Market Growth

Governments across the globe are enforcing stricter environmental regulations and sustainability initiatives to reduce carbon emissions and promote energy-efficient vehicles. These regulations, coupled with rising concerns over climate change, are driving automakers to invest heavily in R&D to develop cleaner, more fuel-efficient vehicles. Electric vehicles (EVs), hybrid models, and low-emission technologies are in high demand, prompting the need for extensive research and development services. As regulations continue to evolve, automakers will need to adapt, presenting further opportunities for innovation and advancement in the automotive sector.

Restraint Factor for the Automotive Research And Development Services Market

High Costs of R&D and Infrastructure, will Limit Market Growth

One of the key restraints in the automotive research and development services market is the high cost associated with the research and innovation process. Developing new automotive technologies requires significant investments in infrastructure, equipment, and human resources. Companies must allocate substantial capital to fund R&D activities, including prototyping, testing, and compliance with safety and regulatory standards. Small to medium-sized manufacturers may find it difficult to bear these high costs, limiting their ability to engage in extensive R&D. The financial burden can hinder the pace of innovation, especially for companies looking to enter the competitive automotive market.

Impact of Covid-19 on the Automotive Research And Development Services Market

Covid-19 pandemic significantly impacted the Automotive Research and Development Services Market by causing disruptions in manufacturing, supply chai...

The Automotive Market estimated size and share is projected to exceed USD 7,705.52 billion by 2034, with a forecasted CAGR of 6.8% during the period.

According to Cognitive Market Research, the global complete automotive market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 3.60% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 1.8% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.0% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.3% from 2024 to 2031.
The electric held the highest complete automotive market revenue share in 2024.

Market Dynamics of Complete Automotive Market

Key Drivers for Complete Automotive Market

Growing Interest in Improved Fuel Economy to Increase the Demand Globally

The increasing demand for cars with more efficient engines is driving the market's growth. Additionally, automakers are putting more effort into creating vehicles with reduced greenhouse gas (GHG) emissions and fuel consumption. Their utilization of low-cost parts and effective features has a big influence on overall automotive standards. Automakers are looking into new materials and forms for cars in an effort to reduce weight while increasing airflow. The development and supply logistics sectors' growing demand for avenue and transport expansion is thus anticipated to drive growth in the market for full automobiles. For instance, Panasonic Automotive Systems and Arm established a strategic alliance to standardize software-defined vehicle (SDV) automotive technology. From their active involvement in SOAFEE, a nationwide action that is promoting a stronger partnership in established software building across the automobile sector, both businesses have agreed on their shared vision of developing a software stack that is flexible enough to meet the needs of the automotive industry both now and in the years ahead.

Increasing Popularity in Electric Cars to Propel Market Growth

The complete automotive industry is driven by the growing popularity of electric vehicles. The government is promoting the sale of battery-operated cars by offering motorists financial rewards and improving the facilities necessary for electric automobiles, such as charging facilities across the nation, in response to the global decline in the atmosphere and increasing emission rates. The market for complete automotive is anticipated to grow along with the rise in revenues of electric automobiles. The municipality is investing a substantial amount of funds to stimulate the market for electric automobiles.

Restraint Factor for the Complete Automotive Market

Variable Pricing for Ingredients to Limit the Sales

The main components required to make vehicles are copper wires and steel framework. Availability of resources and price fluctuation are issues for suppliers and automakers. Variations in basic ingredient prices are restraining the worldwide automotive engine market's expansion. Furthermore, producers are unable to benefit from falling material prices due to extended supply agreements. Thus, if the resource or material's price drops, producers lose their edge and expense. Substantial production expenses and low consumption in emerging economies restrict the expansion of the market.

Impact of Covid-19 on the Complete Automotive Market

The COVID-19 pandemic has caused a great deal of economic and social disruption. The epidemic has impacted many firms' value chains and supply chains. This is also true of the whole automotive industry. Analysis of the COVID-19 pandemic's effects will be conducted from the viewpoints of the supply and demand sides of the business as a whole. Both immediate and long-term repercussions of the epidemic will be researched and examined. This would help all industry participants, especially suppliers...

Automakers are bulking up on the use of advanced materials, hardware control systems with AI in the loop and weight savings techniques Future vehicles will utilize far more smart locking systems, electronic braking components, active aerodynamics hardware, etc. Automotive Hardware Market Projected to grow from USD 88.3 Billion in 2025 to USD 130.7 Billion in 2035, this market is projected to grow at a CAGR of 4.0% during 2025 to 2035.

Country-wise Outlook

Competitive Outlook

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Automotive Service Market Size 2024-2028

The automotive service market size is forecast to increase by USD 401.4 billion at a CAGR of 8.09% between 2023 and 2028.

The market is experiencing significant growth due to several key factors. The increasing vehicle population continues to drive demand for automotive repair and maintenance services. Furthermore, the automotive industry is undergoing a digital transformation with the integration of advanced technologies such as Electronic Access Control Systems (EACS) and automotive powertrain testing. Additionally, the rise of electric cars and mobility-as-a-service models are disrupting traditional business models, presenting both opportunities and challenges. The uncertainty In the automotive industry, including regulatory changes and economic factors, also impacts the market dynamics. The automotive parts sector is a crucial component of the service market, as the demand for replacement parts remains strong despite the shift towards electric vehicles.
Overall, the market is poised for growth, with a focus on innovation, adaptability, and customer satisfaction.

What will be the Size of the Automotive Service Market During the Forecast Period?

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The market encompasses aftermarket services for various types of vehicles, including cars, heavy commercial vehicles, two wheelers, and specialized vehicles. This market is driven by the continuous sales of new and used automobiles, as well as the demand for replacement parts and maintenance services for aging cars. Consumer habits and lifestyles are shifting towards shared mobility solutions, such as ride-hailing services, taxis, and car-sharing platforms. 
Sustainability is also a growing concern, with an increasing focus on electric and hybrid vehicles, as well as the integration of connected car technologies and self-driving capabilities. The market is characterized by its size and diversity, with a wide range of players offering services related to vehicle components, repair and maintenance, software expertise, and online sales platforms.
Price sensitivity among customers remains a significant factor, as does the need for efficient repair times and profitability for service providers. The market is further influenced by the ongoing advancements in automotive technology, including sensors, internal combustion engines, and the integration of mobility fleet sharing.

How is this Automotive Service Industry segmented and which is the largest segment?

The automotive service industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Mechanical services
  Exterior and structural services
  Maintenance services


Vehicle Type

  Passenger cars
  Light commercial vehicles
  Two wheelers
  Heavy commercial vehicles


Geography

  North America

    US


  APAC

    China
    Japan


  Europe

    Germany
    UK


  South America



  Middle East and Africa

By Type Insights

The mechanical services segment is estimated to witness significant growth during the forecast period.

The market encompasses various mechanical offerings, including oil filter changes, wiper blade replacement, tire installation, and battery replacement. The need for enhanced performance and dependability in contemporary vehicles drives the demand for advanced automotive services. The sales of vehicles, particularly passenger cars and light commercial vehicles, significantly influence the adoption of automotive services. In emerging economies, the growing economic activities have led to a surge in demand for commercial vehicles, especially light-duty ones. Minivans and other light commercial vehicles are extensively utilized for business applications such as intercity transportation, fueling the expansion of the light-duty commercial vehicles market and the subsequent demand for automotive services.

Additionally, the shift towards sustainability, consumer habits, mobility fleet sharing, and lifestyle trends, including the rise of special utility vehicles and electric or hybrid vehicles, are transforming the automotive components landscape and the associated maintenance services. Exterior and structural repairs, franchise general repairs, tire stores, and maintenance services for internal combustion engines, exterior components, and replacement parts are essential offerings In the automotive services market. The market is further segmented into maintenance and repair services for passenger cars, light commercial vehicles, heavy commercial vehicles, two wheelers, and various vehicle components. The market's profitability is influenced by factors such as repair time, price sensitivity, and the integration of sensors, connected car technologies, and self

The US Automotive Market size was worth around USD 4.35 billion in 2023 and is predicted to grow to around USD 10.67 billion by 2032 with a CAGR of roughly 10.5%.

The Passenger Cars Market is segmented by Vehicle Configuration (Passenger Cars), by Propulsion Type (Hybrid and Electric Vehicles, ICE) and by Region (Asia-Pacific, Europe, North America, South America). 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.

Vehicle TypePassenger Cars: Dominating the market with personal transportation needs.Commercial Vehicles: Used for business purposes, such as delivery and transportation.Three Wheelers: Popular in emerging markets for mobility.Two Wheelers: Used primarily for personal transportation.Fuel TypeDiesel: Traditionally used in heavy-duty vehicles and commercial transportation.Petrol: Widely used in passenger cars and light-duty vehicles.Electric: Gaining popularity due to environmental concerns and government incentives.ServiceMechanical: Essential maintenance and repairs for optimal vehicle performance.Exterior and Structural: Services to enhance vehicle aesthetics and protect from damages.Electrical and Electronics: Advanced services to maintain and upgrade electrical and electronic systems.EquipmentTires: Critical for vehicle safety, performance, and fuel efficiency.Seats: Ensure comfort and ergonomics for drivers and passengers.Batteries: Power source for electric and hybrid vehicles.Other Equipment Types: Include components like brakes, suspension, and lighting systems. Recent developments include: Launch of new electric and hybrid vehicle models.

, Investments in self-driving technology., Partnerships for ridesharing and car subscription services., Acquisition of automotive startups by tech companies.. Key drivers for this market are: Increasing demand for fuel-efficient vehicles.

Government incentives for electric and hybrid vehicles.. Potential restraints include: Supply chain disruptions due to global events.

Rising raw material costs.. Notable trends are: Integration of AI and ML technologies.

Proliferation of connected vehicles..

The global DM in automotive market size reached USD 10.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 17.5 Billion by 2033, exhibiting a growth rate (CAGR) of 5.51% during 2025-2033. The increasing adoption of digital technologies in the automotive industry, rising demand for customization, growing focus on quality enhancement and enhanced focus on research and development (R&D) activities, represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the global DM in automotive market report, along with forecasts at the global, regional and country levels from 2025-2033. Our report has categorized the market based on type and application.

The global auto parts manufacturing market size reached USD 2,250.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2,761.1 Billion by 2033, exhibiting a growth rate (CAGR) of 2.3% during 2025-2033. The increasing global demand for automobiles, the rising governments initiatives and incentives promoting the automotive industry's growth and sustainability, and the growing consumer demand for enhanced comfort, connectivity, and convenience features in vehicles are some of the factors propelling the market.

IMARC Group provides an analysis of the key trends in each segment of the global auto parts manufacturing market report, along with forecasts at the global, regional and country level from 2025-2033. Our report has categorized the market based on component type, sales channel and vehicle type.

Automotive Manufacturing Equipment Market size was valued at USD 7.38 Billion in 2024 and is projected to reach USD 15.88 Billion by 2031, growing at a CAGR of 11.1% from 2024 to 2031.

Global Automotive Manufacturing Equipment Market Drivers

Technological Developments: The automotive sector is always changing, and this is reflected in the requirement for increasingly complex production equipment due to developments in automation, robotics, and digitalization.
Demand for Electric Vehicles (EVs): As manufacturing facilities adapt to the change to electric vehicles, there is a growing need for specialised equipment designed for EV production.
Industry 4.0 Integration: By enhancing productivity, efficiency, and flexibility in the automobile manufacturing sector, Industry 4.0 technologies—such as big data analytics, artificial intelligence, and the Internet of Things—also encourage the adoption of cutting-edge machinery.
Strict Regulations and Emission Standards: In order to build cleaner and more fuel-efficient automobiles, compliance with strict environmental regulations and emission standards requires the use of modern production technology.
Globalisation and Outsourcing: In order to remain competitive and satisfy a range of consumer needs, there is a need to invest in state-of-the-art manufacturing equipment as globalisation and outsourcing of automobile production to emerging markets increase.
Resilient Supply Chains: The COVID-19 pandemic brought to light the significance of robust supply chains. To minimise delays and maintain output, automakers are investing in equipment that is versatile and adaptive.
Sustainable Manufacturing processes: Automotive manufacturers are being forced to adopt sustainable manufacturing processes due to regulatory demands and rising consumer awareness. This involves implementing eco-friendly procedures and energy-efficient machinery.
Growth in Automotive Sales: In order to satisfy production goals and quality requirements, there is an increasing demand for automobiles worldwide, particularly in growing nations. This has led to a need for modernised manufacturing facilities and equipment.

Ghana Automobile Industry Report is Segmented by Vehicle Type (Passenger Cars, Commercial Vehicles, Two-Wheelers, and Three-Wheelers), Propulsion (Internal Combustion Engine and Electric Vehicles), and Type (New Vehicles and Used Vehicles). The Report Offers the Market Size in Value Terms in USD for all the Above-Mentioned Segments.

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India Automotive Market Size 2025-2029

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

The Indian automotive market presents significant growth opportunities for global investors, driven by a burgeoning middle class population and increasing demand for personal mobility solutions. With over 1.3 billion people, India's consumer base is vast and diverse, creating a large potential market for automotive companies. Moreover, the shift towards sustainable transportation is gaining momentum in India, with the rise in demand for electric vehicles (EVs) and the government's push towards electrification. However, this market is not without challenges. Intense competition among companies, including domestic and international players, is driving down prices and increasing pressure on profit margins. Navigating this complex landscape requires a deep of local market dynamics and the ability to adapt quickly to changing consumer preferences and regulatory requirements. Companies seeking to capitalize on the opportunities in the Indian automotive market must focus on innovation, sustainability, and cost competitiveness to stay ahead of the competition.

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

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The automobile industry in India, a significant player in the global transport sector, continues to exhibit growth, driven by the expanding middle class population and urbanization. The market, encompassing passenger vehicles and commercial motor vehicles, is witnessing dynamic trends, including the adoption of connected automotive technology, real-time navigation, remote diagnostics, and autonomous driving technology. Hybrid vehicles and eco-friendly designs are gaining traction, aligning with the global shift towards green mobility solutions. Fuel efficiency, battery management, and emission control are key focus areas for automakers. Urban areas, with their unique mobility challenges, are fostering innovation in areas such as lightweight materials, smart mobility, and charging infrastructure. Automotive electronics, telematics systems, infotainment systems, powertrain innovation, and vehicle safety are other critical domains of development. The integration of driver assistance features and autonomous driving technology is transforming the industry landscape. As India continues to urbanize and income levels rise, the demand for affordable, efficient, and technologically advanced vehicles is expected to remain strong.

How is this market segmented?

The market 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. TypeTwo-wheelersPassenger carsCommercial vehiclesThree-wheelersFuel TypeDieselPetrolCNG and LPGElectricDistribution ChannelOfflineOnlineGeographyIndia

By Type Insights

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

The Indian automotive market encompasses a vast array of segments, with two-wheelers representing a significant portion. Fueled by population growth, urbanization, and increasing disposable income, demand for two-wheelers continues to rise. This category includes motorcycles and scooters, categorized based on engine power, purpose, styling, and cost. Motorcycles, more powerful than scooters, range from entry-level models with engines up to 500cc. In contrast, scooters, suitable for urban commuting, typically fall between 100cc and 150cc. Passenger vehicles, including passenger cars, compact SUVs, mid-size SUVs, hybrid electric vehicles, and autonomous vehicles, also constitute a substantial portion of the market. Corporate interest in passenger transportation, environmental concerns, and economic conditions further influence the industry's growth. The automotive sector includes vehicle manufacturing, motor vehicle selling, and the transport industry, with new vehicle registrations reaching record numbers. Companies invest in AI software, real-time navigation, remote diagnostics, and autonomous driving technology to cater to the evolving needs of consumers. The government's phased manufacturing proposal and emissions standards encourage the adoption of green mobility solutions, such as electric vehicles and hybrid vehicles. The two-wheeler industry, a crucial component of the automotive market, continues to expand, catering to the diverse needs of the middle-class population in urban areas.

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The Two-wheelers segment was valued at USD 52.40 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along