India SUV market registered USD 196.75 million in
2022 and is estimated to reach USD 381.79 million in 2028, advancing with a
CAGR of 10.40% during the forecast period. Rise in tourism industry in the
country is directly upsurging the need for premium off-roading vehicles for
better ease in traveling, which will further bolster the India SUV market in
the upcoming years. Furthermore, the rising socioeconomic conditions associated
with an increase in disposable income drive the SUV market by creating more
prospective buyers for SUVs during the anticipated period.
Conclusively, rising demand for premium vehicles, a
surge in people's standard of living, an increase in purchasing power, rising
consumer demand for a car that is comfortable and capable of occasional
off-roading, and increased investments by major auto brands such as Honda, Toyota,
Jeep, and others in their SUV product lines are expected to drive the Indian
SUV market in the coming years.
When COVID-19 began to cause lockdowns across the
globe, there was a substantial slowdown in automobile sales. The COVID-19
pandemic adversely impacted the economic condition of India. Due to the effect
of lockdown and restrictions in April 2020, the automobile sector saw minimal
SUV sales. But, gradually the SUV segment has shown strength, with a growth
rate of around 50% in 2022. Also, the new model launches are experiencing
robust booking, indicating a healthy and good demand pipeline.
Rising introduction of new SUV models with ADAS
Technology
Major Indian automakers like Mahindra & Mahindra Limited,
Hyundai Motors Company, and others have launched the models like Mahindra XUV
700, MG Astor, MG Gloster, Hyundai Tucson, and others that are incorporated
with advanced driver assistance systems (ADAS) technology to improve the road
safety. ADAS technology includes features like speed control, forward collision
warning, adaptive cruise control, maintaining a safe distance, lane departure
warning/prevention, lane-keep assist, automatic emergency braking, automatic
parking assist, high-beam assist, blind-spot detection, and rear cross-traffic
alert, which also thereby preventing the road accidents and minimizing the
repercussions of human error. In conclusion, the models are incorporated with ADAS
technology, which is definitely capturing more customers, hence aiding the
country's market growth.
Ongoing Product Launches
Driven by connectivity services, shared mobility, and
feature updates, manufacturers are increasingly collaborating and developing
new products to remain competitive in the market by offering extra features and
technologies. For example, major manufacturers are releasing models such as the
Maruti S-Cross is expected to be launched in September 2022, BYD Atto 3 in
October 2022, Jeep Grand Cherokee in November 2022, and others. These SUVs
offer advantages such as improved comfort and convenience, fuel efficiency, a
decent interior and appearance, and so on. As a result, the country's SUV
industry is seeing increased sales and demand due to the quick developments in
features and consistent product launches.
Electrification of SUVs
With a growing number of electric SUV models, SUVs
are electrifying quicker than in prior years. Globally, in 2021, around 55% of
the electric car models on the market were SUVs, up from 45% two years ago,
which clearly indicates that the electrification ratio of SUVs matches that of
non-SUV cars. Similarly, in India, more and more people are opting for electric
cars due to the rapid rise in fuel prices i. E-SUVs have various advantages
over conventional vehicles, including greater vehicle dynamics, lower fuel
consumption, and low-noise electric driving. Factors such as increased use of
fuel-efficient mobility solutions and lower battery costs per KWH are predicted
to boost the demand for e-SUV in the country, which is also driving the SUV
market growth in the country.
Due to their output efficiency and lightweight,
OEMs rely on electrical components, making vehicle electrification a
fuel-efficient alternative. Furthermore, compared to gasoline-powered cars,
hybrid and electric vehicles are more fuel-efficient modes of transportation. Moreover,
car emissions are an important element since hazardous greenhouse gases are
emitted, raising environmental and health problems. As a result, governments worldwide
are enacting automobile emission standards to reduce greenhouse gas emissions
and maintain environmental balance. Manufacturers must follow these
requirements in order to keep emissions within control. The Government of India
established the BS6 emission standard in April 2020 to restrict the discharge
of air pollutants from cars. Furthermore, electrification is the next phase,
with most automakers focusing on hybrid-powered vehicle development to meet the
rapidly changing needs of end users and policymakers to meet green mobility
criteria. For example, Groupe Renault aims to attain 35% of sales from hybrid
models in 2021 and 30% from completely electric vehicles by 2025. As a result, all
these factors will increase the demand for e-SUVs in the near future.
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Market Segmentation
The India SUV market is segmented based on fuel
type, seating capacity, type, region and top 10 states. Based on fuel type the
market is segmented into petrol, diesel, and electric. Based on seating
capacity, the market is segmented into 5-seater and 7-seater. Based on type,
the market is segmented into compact, mid-size and large. Based on type, the
compact SUVs segment has shown the considerable growth in the country primarily
due to their low cost, compact size, ease in parking and navigation in the busy
streets, better maneuverability and more stylistic design. As a result, the
Indian SUV industry is expected to expand at an incredible rate over the next
decade.
Company Profiles
The key players in the market include Hyundai
Motors Company, Tata Motors Ltd., Mahindra & Mahindra Limited,
Maruti Suzuki India Limited, Toyota Motor Corporation, Stellantis N.V., Ford
Motor Company, Honda Motor Co., Ltd., SAIC Motor Corp., Ltd., Nissan Motor Co.,
Ltd., Renault India Private Limited and Volkswagen AG. These players are
involved in advanced strategic moves and innovations, such as mergers, ventures,
and collaborations and hold a strong position in the Indian market. For
example, Toyota Motor Corporation (Toyota) and Suzuki Motor Corporation
(Suzuki), have announced plans to begin manufacturing hybrid SUV vehicles in
August 2022. The alliance leverages Toyota's expertise in electrification and
Suzuki's capability in compact vehicles for combined manufacturing and wider
adoption of EVs. Therefore, this is ultimately going to assist the market
growth.
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Attribute
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Details
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Market size value in 2022
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USD 196.75 Million
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|
Revenue Forecast in 2028
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USD 381.79 Million
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Growth Rate
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10.40%
|
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Base Year
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2022
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Historical Years
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2018 – 2021
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|
Estimated Year
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2023
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Forecast Period
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2024 – 2028
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|
Quantitative Units
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Revenue in USD Million, Volume in Thousand Units,
and CAGR for 2018-2022 and 2023E-2028F
|
|
Report Coverage
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Revenue forecast, volume forecast,
company share, competitive landscape, growth factors, and trends
|
|
Segments Covered
|
·
By
Type
·
By
Fuel Type
·
By Seating
Capacity
·
By
Region
·
By
Top 10 States
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Regional Scope
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North, West, South, East
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|
Key Companies Profiled
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Hyundai Motors Company, Tata Motors Ltd.,
Mahindra & Mahindra Limited, Maruti Suzuki India Limited,
Toyota Motor Corporation, Stellantis N.V., Ford Motor Company, Honda Motor
Co., Ltd., SAIC Motor Corp., Ltd., and Volkswagen AG.
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|
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/pdf format on special request)
|
Report
Scope:
In this
report, India SUV Market has
been segmented into following categories, in addition to the industry trends
which have also been detailed below:
- India SUV Market, By Type:
- India SUV Market, By Fuel Type:
- India SUV Market, By Seating Capacity:
- India SUV Market, By Region:
- India SUV Market, By Top 10 States:
- Uttar
Pradesh
- Maharashtra
- Karnataka
- Gujarat
- Haryana
- Kerala
- Telangana
- Delhi
- Rajasthan
- Tamil
Nadu
- Others
Competitive
Landscape
Company Profiles: Detailed
analysis of the major companies present in India SUV 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).