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India Passenger Car Market Will be Dominated by SUV Passenger Car During the Forecast Period by 2029

Increasing demand towards electric vehicles and increasing middle class income drive the India Passenger Car Market through 2029F.

According to TechSci Research report, India Passenger Car Market - By Region, Competition, Forecast, and Opportunities, 2019- 2029F”, India passenger car market is expected to grow at a considerable rate in the coming years. The automobile industry is dependent on a variety of elements, including the availability of trained labor at a reasonable cost, excellent R&D facilities, and steel manufacturing capabilities. Additionally, it is anticipated that future market expansion will be fueled by emerging trends such as the electrification of vehicles, especially compact passenger automobiles.


In order to keep up with the rising demand, several automakers have started making large investments in the passenger car segments of the market. Maruti Suzuki India, for example, announced in November 2022 that it would invest up to Rs. 7,000 crore (US$ 865.12 million) in a number of passenger vehicle projects in Haryana the following year. Furthermore, in 2022, Tata Motors made plans to invest Rs. 24,000 crore ($3.08 billion) in its passenger vehicle sector over the next five years. Additionally, consumers are purchasing sport utility vehicles (SUVs) in large numbers. The market dominance of mid-size sedans like the Ciaz, Verna, etc. has changed as more compact SUVs with comparable price points have flooded the market. Furthermore, in FY22, up to 664,000 small SUVs were sold, making the SUV segment larger than the hatchback car segment in India passenger car market. Many original equipment manufacturers are rapidly developing new models of affordable cars with consumer-friendly features in order to maintain their market positions. A wide variety of variants enables OEMs to swiftly entice users to choose a model in accordance with their financial budget and preferences. Moreover, technological development and a wide range of models will boost the passenger car segment in upcoming years.

Many organizations in the India passenger car market are investing and collaborating to bring new products with advanced features and technology which results in higher adoption of passenger cars in India. For instance, in 2023, 1000 XPRES-T EVs will be delivered provided to OHM E Logistics Pvt. Ltd. in Hyderabad for their electric cab transportation services by Tata Motors, India's leading automaker and the country's forerunner in the EV evolution. Furthermore, Mahindra & Mahindra Ltd. (M&M Ltd.) announced in 2022 that their investment of Rs. 10,000 Crore (about USD 1.2 Billion) for electric vehicles had been approved by the Maharashtra Government's industrial promotion scheme for electric vehicles. Also, the XUV400 was the first electric SUV made by the Mahindra Company. The Indian Driving Cycle (MIDC) estimates that this car can travel 456 kilometres on a single full charge. Additionally, Hyundai Motor India Ltd. announced an innovative corporate partnership with ITC Agro Business Division (ABD), in 2023, in order to boost Hyundai's brand recognition in rural areas. Overall, with the above development India passenger car market is expected to increase in coming years with greater CAGR.


Browse more than XX market data Figures spread through XX Pages and an in-depth TOC on   "India Passenger Car Market"



The Indian electric vehicle market appears to be growing at a considerable growth rate in the coming years. Both the public and commercial sectors have invested a lot in this sector. On December 20, 2022, Mahindra & Mahindra Ltd. (M&M Ltd.) announced plans to invest Rs 10,000 crore to build an electric car manufacturing facility in Maharashtra over a 7-8 year period. The Indian EV finance market is anticipated to reach Rs. 3.7 lakh crore (USD 50 billion) by 2030, according to NITI Aayog and the Rocky Mountain Institute (RMI). The factors mentioned above boost the overall passenger car market in India.

Although, due to a shortage of production and import restrictions following the COVID-19 outbreak, which caused an economic crisis, the nation's automotive sales fell drastically in 2020. With constant improvement and economic stability, the passenger car industry has begun to recover despite obstacles including increased gasoline prices, a shortage of semiconductors, and supply chain disruptions. Based on vehicle type, hatchback segment is leading the India passenger car market in 2022 and it is expected to lead in coming years as they are more affordable with more features. On the basis of propulsion, petrol segment is leading the market. Also, electric passenger cars have higher CAGR as compared to others, in the forecast years.

Key market players in the India Passenger Car Market include:

  • Maruti Suzuki India Limited
  • Hyundai Motor India Limited
  • Mahindra & Mahindra Ltd
  • Honda Cars India Ltd.
  • Tata Motors Limited
  • Toyota Kirloskar Motor Pvt Ltd.
  • Ford India Private Limited
  • Volkswagen India Private Limited
  • Mitsubishi Motor India Private Limited
  • FCA India Private Limited

 

India Passenger Car Market can be segmented based on, by vehicle type, by propulsion, by transmission type, by price segment, by region, and Top 10 Cities. On the basis of vehicle type, the market is segmented into Sedan, SUV, MPV, Hatchback.  Based on the propulsion, it is further segmented into Petrol, Diesel, CNG, Hybrid, Electric. Based on the Transmission Type into Automatic, Manual. Based on By Price Segment into Ultra Budget, Budget, Premium. Furthermore, the market is also divided into region wise mainly north, west, south and east. 

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“India Passenger Car Market is expected to boost the automobile industry’s overall revenue with the addition of electric passenger cars in the market. Based on propulsion, petrol segment is leading the market, but electric passenger cars will hold the higher growth rate in upcoming years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

India Passenger Car Market Segmented By Vehicle Type (Sedan, SUV, MPV, Hatchback), By Propulsion (Petrol, Diesel, CNG, Hybrid, Electric), By Transmission Type (Automatic, Manual), By Price Segment (Ultra Budget, Budget, Premium), By Region (North, West, South, East), By Top 10 Cities, By Competition Forecast & Opportunities, 2018- 2028F has evaluated 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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