India Passenger Car Market By Size, Share and Forecast 2029

Summary

Report Description

India Passenger Car Market is growing at a robust CAGR due to rapid technological advancements in the recent years higher disposable incomes of consumers and increase in demand for Sport Utility Vehicles (SUVs). Furthermore, with emerging trends and growing business prospects in the automotive industries the central and state governments have been introducing favorable policies which are financially helping the car manufactures across the country.

India Passenger Car Market Scope

Passenger cars are vehicles which are designed and constructed for the carriage of passengers. These vehicles have become an integral part of society, which has transformed individual mobility since their inception. The rapid urbanization has evolved these vehicles over time. They have become the dominant mode of road transport in much of the world.

These vehicles are classified in four segments: Hatchback, Sedan, Sport Utility Vehicle (SUV)/Multi-Utility Vehicle (MUV). A hatchback is a 4-door vehicle which is assembled on a two-box body with the rear door that swings upward to provide access to the main interior. Sedans are a 3-box configuration vehicle which are longer than hatchbacks with extended boot space. Sport Utility Vehicles are built with powerful engines as compared to other types of passenger cars and are meant for driving on rough terrains. Multi-utility vehicles (MUV) are made to carry a greater number of passengers for transportation. They have higher seating capacity in comparison to other types of passenger cars. MUVs may look like SUVs but they have less powerful engines than SUVs.

India Passenger Car Market Overview

In recent years, the India Passenger Car Market has started to grow rapidly and there are numerous factors which are leading this growth. One of them is the rapid technological development in automobiles which has enhanced the driving experience in a more convenient manner along with other features that these passenger cars now come with. Moreover, people’s preference for owning a personal vehicle has increased significantly over the last couple of years. The COVID-19 pandemic has generated a notion of distance among the people and has pushed their mindset to stay away from crowded public transportation. Apart from this, the good road infrastructure has also led to this rapid growth in the industry because people prefer having a personal vehicle that provides convenience, and safety.

The India Passenger Car Market is also facing other transformation such as development in electric car, regulations in cars powered with internal combustion engines, etc. India is at the forefront when it comes to climate concerns. The Indian Government has taken various measures which are in line towards sustainable development and environmental friendliness. One example is the emission regulation from BS4 to BS6 which regulates the pollution emitted from automobiles. In the electric passenger car market, the government has provided subsidies to increase the adoption of electric cars in the country.

India Passenger Car Market Drivers

The India Passenger Car market in India has grown rapidly in recent years, driven by a combination of factors, such as technological advancement, increased preference for owning a personal car, higher disposable income, easy financing options and a supportive regulatory environment.

The Indian passenger car market is highly competitive which becomes quite favorable to consumers in terms of pricing. This has led to numerous advanced featured cars in the reach of the larger population of the country. This is further augmented with the higher disposable income. Moreover, the rapid digitalization is also driving sales of the passenger car in India by reducing the tedious process of paperwork and travelling to dealerships and thus increasing margins for OEMs. In addition, better financing options are also now available to the consumers thus, immensely leading to the growth of India passenger car market.

Supportive government policies are also helping the growth of the market. Initiatives such as Production Linked Incentive (PLI) scheme outlays USD3.5 billion to boost domestic manufacturing and attract investments in the automotive manufacturing value chain. The National Electric Mobility Mission Plan was taken up by the government for the consistent, affordable and competent hybrid and electric vehicles.

India Passenger Car Market Trends

Increasing demand for SUVs among consumers is due to more space, high ground clearance, more seating capacity and are good on rugged roads. Among four vehicle types in passenger car; hatchback, sedan, and SUV/MPV; SUVs have seen the maximum growth in the past year and captured most of the market. Whereas hatchbacks have seen the decline in their market share by volume which were once used to dominate the Indian passenger car market.

Technological advancements such as automatic braking, self-parking capabilities etc., are also trending in the automobile sector. Recent car launches are now equipped with the advanced driver assistance system (ADAS) feature which includes features such as lane departure warning, automatic emergency braking and adaptive cruise control. These features enhance safety and driving convenience. This trend is increasing now due to safety concerns among the people and government’s push for reducing road fatalities.

Moreover, one of the most disrupting trends is of electrification among passenger cars in India. The availability of government subsidies and incentives has encouraged the development and production for electric cars in India. The sales of electric cars in India have more than doubled in the last financial year (FY 2023) and it is expected to grow rapidly in the forecast years. Almost every vehicle segment now has at least one EV offering.

India Passenger Car Market Challenges

India is one of the leading markets of shared mobility. Over the past three-four years, India has seen the rapid rise of ride-share apps like OLA, Uber etc. Although, development in this area has led to more convenient travelling without the hassle of driving in the heavy traffic, it has avoided the maintenance cost of owning a personal vehicle, thus affecting the sales of personal vehicles and challenging the concept of ownership.

Geopolitical instability and record inflation are driving up prices of commodities which is directly resulting in higher car prices. Further, the transition to EVs has disrupted the market and divided it into more segments coupled with looming electric infrastructure of the country has made the situation more complicated. This has resulted in the demand and supply gap of automotive components such as lag in battery supply and charging stations installation.

Market Recent Developments

In 2023, Tata Passenger Electric Mobility Ltd (TPEML), a part of Tata Motors has bought Ford India Pvt Ltd.’s Sanand facility based in Gujrat for USD88.5 million approximately.
In 2023, Hyundai Motors India has signed the acquisition deal with General Motors for their Talegaon facility located in Pune (Maharashtra).
In 2022, Toyota Kirloskar Motor and Maruti Suzuki India Ltd has collaborated on the fields of development and production in India to subdue the challenges of electrification and carbon neutrality.

Market Opportunities

The passenger car market in India presents several opportunities for growth and innovation to its stakeholders. The government’s Production Linked Incentive Scheme has boosted domestic manufacturing and investments in the country. It has also led to the formation of several startups linked to the passenger car market, especially in the areas related to electric cars and their components. India is a leading shared mobility market in the world and this market has shown significant adoption for electric passenger cars. Moreover, increasing preference for SUVs in recent years has led to the launch of several new vehicles in this vehicle segment only.

The country’s poor charging infrastructure for electric cars has led to the opportunities for other areas like hybrid vehicles, fuel blending, etc. Several government schemes have supported the transforming passenger car market in India, for instance; under the FAME I & II, a total of 532 EV charging stations are installed by the oil companies under the Ministry of Petroleum and Natural Gas, in the Union Budget 2022-23 the government has introduced battery swapping policy which will allow drained batteries to be swapped at designated charging stations. Thus, the new market trends and supporting government schemes have provided tremendous opportunities for investors and consumers both, and the market is likely to follow the same trend in the forecast period.

Market Segmentation

The India Passenger Car Market is segmented based on vehicle type, by propulsion type, by transmission type, by price segment, by region, and competitive landscape. In vehicle type, the market is segmented into Hatchback, Sedan, and SUV/MUV. In propulsion type, it is segmented into petrol, diesel, electric, and others (which include hybrid, CNG etc.). Based on transmission type, the market is further classified into automatic and manual. Based on the price segment, the market is segmented into economy, mid-range, premium, and luxury. By region, the market is divided into North, South, East and West regions.

Company Profiles

Maruti Suzuki India Limited, Hyundai Motor India Limited, Tata Motors Passenger Vehicle Limited, Mahindra & Mahindra Limited, Kia India Private Limited, Toyota Kirloskar Motor Private Limited, Honda Cars India Limited, MG Motor India Private Limited, Renault India Private Limited, and Skoda Auto Volkswagen India Private Limited are some of the major players in the India passenger car market.

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Attribute	Details
Base Year	2023
Historic Data	2019 – 2022
Estimated Year	2024
Forecast Period	2025 – 2029
Quantitative Units	Value in USD Million, Volume in Thousand Units, CAGR for 2019-2023 and 2024-2029
Report Coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends
Segments Covered	Vehicle Type Propulsion Type Transmission Type Price Segment Region
Regional scope	North, South, East, West
Key Companies Profiled	Maruti Suzuki India Limited, Hyundai Motor India Limited, Tata Motors Passenger Vehicle Limited, Mahindra & Mahindra Limited, Kia India Private Limited, Toyota Kirloskar Motor Private Limited, Honda Cars India Limited, MG Motor India Private Limited, Renault India Private Limited, and Skoda Auto Volkswagen India Private Limited.
Customization scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Report Scope:

In this report, India Passenger Car Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Passenger Car Market, By Vehicle Type:

Hatchback
Sedan
Sport utility Vehicle (SUV)/Multi-Utility Vehicle (MUV)

India Passenger Car Market, By Propulsion Type:

Petrol
Diesel
Electric
Others (CNG, Hybrid, etc.)

India Passenger Car Market, By Transmission Type:

Automatic
Manual

India Passenger Car Market, By Price Segment:

Economy
Mid-Range
Premium
Luxury

India Passenger Car Market, By Region:

North
South
East
West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India Passenger Car Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

The India Passenger Car Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Introduction

1.1. Market Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Market Overview

3.2. Market Forecast

3.3. Key Regions

3.4. Key Segments

4. Impact of COVID-19 on India Passenger Car Market

4.1. Key Segments Impacted

4.2. Key Regions Impacted

5. Voice of Customer Analysis

5.1. Factors Influencing Purchase Decision

5.2. Brand Awareness

5.3. Challenges & Unmet Needs

6. India Passenger Car Market Outlook

6.1. Market Size & Forecast

6.1.1. By Volume & Value

6.2. Market Share & Forecast

6.2.1. By Vehicle Type Market Share Analysis (Hatchback, Sedan, SUV/MPV)

6.2.2. By Propulsion Type Market Share Analysis (Petrol, Diesel, Electric, Others (CNG, Hybrid, etc.)

6.2.3. By Transmission Type Market Share Analysis (Automatic, Manual)

6.2.4. By Price Segment Market Share Analysis (Economy, Mid-Range, Premium, Luxury)

6.2.5. By Regional Market Size Analysis

6.2.5.1. North Region Market Size Analysis

6.2.5.2. South Region Market Size Analysis

6.2.5.3. West Region Market Size Analysis

6.2.5.4. East Region Market Size Analysis

6.2.6. By Company Market Share Analysis (Top 5 Companies, Others - By Value, 2023)

6.3. India Passenger Car Market Mapping & Opportunity Assessment

6.3.1. By Vehicle Type Market Mapping & Opportunity Assessment

6.3.2. By Propulsion Type Market Mapping & Opportunity Assessment

6.3.3. By Transmission Market Mapping & Opportunity Assessment

6.3.4. By Price Segment Market Mapping & Opportunity Assessment

6.3.5. By Regional Market Mapping & Opportunity Assessment

7. India Hatchback Passenger Car Market Outlook

7.1. Market Size & Forecast

7.1.1. By Volume & Value

7.2. Market Share & Forecast

7.2.1. By Propulsion Type Market Share Analysis

7.2.2. By Transmission Type Market Share Analysis

7.2.3. By Price Segment Market Share Analysis

7.3. Pricing Analysis & Product Benchmarking

8. India Sedan Passenger Car Market Outlook

8.1. Market Size & Forecast

8.1.1. By Volume & Value

8.2. Market Share & Forecast

8.2.1. By Propulsion Type Market Share Analysis

8.2.2. By Transmission Type Market Share Analysis

8.2.3. By Price Segment Market Share Analysis

8.3. Pricing Analysis & Product Benchmarking

9. India SUV/MPV Passenger Car Market Outlook

9.1. Market Size & Forecast

9.1.1. By Volume & Value

9.2. Market Share & Forecast

9.2.1. By Propulsion Type Market Share Analysis

9.2.2. By Transmission Type Market Share Analysis

9.2.3. By Price Segment Market Share Analysis

9.3. Pricing Analysis & Product Benchmarking

10. Import & Export Analysis

11. SWOT Analysis

11.1. Strength

11.2. Weakness

11.3. Opportunities

11.4. Threats

12. PESTLE Analysis

12.1. Political

12.2. Economical

12.3. Social

12.4. Technological

12.5. Legal

12.6. Environmental

13. Market Dynamics

13.1. Market Drivers

13.2. Market Challenges

14. Market Trends and Developments

15. Policy & Regulatory Landscape

16. India Economic Profile

17. Competitive Landscape

17.1. Company Profiles (Up to 10 leading companies)

17.1.1. Maruti Suzuki India Limited

17.1.1.1. Company Details

17.1.1.2. Product & Services

17.1.1.3. Recent Developments

17.1.1.4. Key Management Personnel

17.1.2. Hyundai Motor India Limited

17.1.2.1. Company Details

17.1.2.2. Product & Services

17.1.2.3. Recent Developments

17.1.2.4. Key Management Personnel

17.1.3. Tata Motors Passenger Vehicles Limited

17.1.3.1. Company Details

17.1.3.2. Product & Services

17.1.3.3. Recent Developments

17.1.3.4. Key Management Personnel

17.1.4. Mahindra & Mahindra Limited

17.1.4.1. Company Details

17.1.4.2. Product & Services

17.1.4.3. Recent Developments

17.1.4.4. Key Management Personnel

17.1.5. KIA India Private Limited

17.1.5.1. Company Details

17.1.5.2. Product & Services

17.1.5.3. Recent Developments

17.1.5.4. Key Management Personnel

17.1.6. Toyota Kirloskar Motor Private Limited

17.1.6.1. Company Details

17.1.6.2. Product & Services

17.1.6.3. Recent Developments

17.1.6.4. Key Management Personnel

17.1.7. Honda Cars India Limited

17.1.7.1. Company Details

17.1.7.2. Product & Services

17.1.7.3. Recent Developments

17.1.7.4. Key Management Personnel

17.1.8. Renaut India Private Limited

17.1.8.1. Company Details

17.1.8.2. Product & Services

17.1.8.3. Recent Developments

17.1.8.4. Key Management Personnel

17.1.9. Volkswagen India Private Limited

17.1.9.1. Company Details

17.1.9.2. Product & Services

17.1.9.3. Recent Developments

17.1.9.4. Key Management Personnel

18. Strategic Recommendations

18.1. Key Focus Areas

18.2. Target Regions

18.3. Target Vehicle Type

19. About Us & Disclaimer

Figures and Tables

Frequently asked questions

What are the key factors driving the growth of India Passenger Car market?

The key factors driving the India passenger car market are increasing disposable income, technological advancement, easy financing options, and supportive regulatory environment.

What is the trend in passenger car sales in India?

Passenger car sales in India grew by 26.7% in FY2022-23 among which SUVs has seen the maximum growth in the market.

What are the recent technological developments in automotive industry in India?

Developments that are shaping the Indian automotive industry include ADAS, connected cars, anti-lock braking system, electronic stability control, and electrification.

Who are the key players in the India Passenger Car Market?

The key players in the India passenger car market are Maruti Suzuki India Limited, Hyundai Motor India Limited, Tata Motors Passenger Vehicle Limited, Mahindra & Mahindra Limited, Kia India Private Limited, Toyota Kirloskar Motor Private Limited, Honda Cars India Limited, MG Motor India Private Limited, Renault India Private Limited, and Skoda Auto Volkswagen India Private Limited.

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Press Release

India Passenger Car Market to be Dominated By SUV/MPV Vehicle Type Segment During the Forecast Period

Oct, 2023

Higher disposable income, technological advancement, increasing preference for personal vehicle due to convenience and safety, and supportive regulatory measures are driving the growth of India Passe

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