Analysis Of Automobile Industry In India Market Size (2024 - 2029)

The Indian automobile industry is experiencing significant growth, driven by an expanding economy and increased disposable income among middle-class consumers, which boosts automobile demand. The market size is poised for expansion due to rapid vehicle manufacturing, supported by low production costs and growing corporate interest in rural markets. The demand for commercial vehicles is rising, fueled by the logistics and passenger transportation sectors. Emerging trends, such as the adoption of electric vehicles, particularly in the three-wheeler and small passenger segments, are expected to further propel market growth. Despite challenges like regulatory compliance and emissions standards, India is becoming a key player in automotive exports, with government initiatives aimed at enhancing its global leadership in the sector.

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Market Size of Analysis Of Automobile Industry In India

Indian Automobile Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 126.67 Billion
Market Size (2029) USD 187.85 Billion
CAGR (2024 - 2029) 8.20 %
Market Concentration Medium

Major Players

Indian Automobile Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indian Automobile Market Analysis

The Analysis Of Automobile Industry In India Market size is estimated at USD 126.67 billion in 2024, and is expected to reach USD 187.85 billion by 2029, growing at a CAGR of 8.20% during the forecast period (2024-2029).

The Indian economy has been expanding with the rise in disposable income of middle-class consumers. This, in turn, has a favorable impact on the increasing demand for automobiles. Vehicle manufacturing has increased rapidly over the last few years as a result of the country's low production costs. The automotive industry is gaining traction as vehicle manufacturing increases.

Increasing corporate interest in tapping into rural markets has been instrumental in driving the expansion of the Indian automobile industry. The surge in logistics and passenger transportation sectors is driving the demand for commercial vehicles. Prospective market growth is projected to be fueled by emerging trends such as the adoption of electric vehicles, particularly in the three-wheeler and small passenger vehicle segments. However, the primary challenge for the Indian automobile industry is regulatory compliance and adherence to stringent emissions standards.

The country stands as a notable player in automotive exports, with robust growth prospects anticipated in the coming years. Moreover, various government initiatives like the Automotive Mission Plan 2026, Scrappage Policy, and production-linked incentive schemes are poised to elevate India's status to a key global leader in the automotive sector.

Indian Automobile Industry Segmentation

The Indian automobile industry encompasses the manufacturing, marketing, and sale of vehicles within India, including passenger cars, commercial vehicles, two-wheelers, and three-wheelers.

The Indian automobile industry is segmented by vehicle types (two-wheelers, passenger vehicles, commercial vehicles, and three-wheelers), by fuel type (diesel, petrol/gasoline, electric, CNG/LPG, and others), and by region (North India, East India, West India, and South India). The report covers the market size and forecast for the Indian automobile industry in value (USD) for all the above segments.

By Vehicle Type
Two-wheelers
Passenger Cars
Commercial Vehicles
Three-wheelers
By Fuel Type
Diesel
Petrol/Gasoline
CNG and LPG
Electric
Others
By Region
North India
South India
East India
West India
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Analysis Of Automobile Industry In India Size Summary

The Indian automobile industry is poised for significant growth, driven by increasing disposable incomes and a burgeoning middle class. This economic expansion has led to a surge in vehicle demand, supported by the country's low production costs and rising corporate interest in rural markets. The industry is experiencing a notable increase in vehicle manufacturing, with a particular focus on commercial vehicles due to the growth in logistics and passenger transportation sectors. Emerging trends such as the adoption of electric vehicles, especially in the three-wheeler and small passenger segments, are expected to further propel market expansion. However, the industry faces challenges related to regulatory compliance and stringent emissions standards. Government initiatives like the Automotive Mission Plan 2026 and production-linked incentive schemes are set to enhance India's position as a global automotive leader.

The two-wheeler segment dominates the Indian automobile market, driven by factors such as fuel efficiency, lower purchase costs, and the country's young and expanding population. The segment's growth is further supported by the increasing popularity of electric two-wheelers and the government's push for eco-friendly vehicles. Initiatives like the National Electric Mobility Mission Plan and the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles programs have spurred interest in electric mobility. The government's commitment to reducing carbon emissions and promoting renewable energy aligns with the industry's shift towards electric vehicles. Major players in the market are investing in research and development to introduce advanced models and enhance infrastructure, ensuring robust growth in the coming years.

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Analysis Of Automobile Industry In India Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 The Growing Economy, Coupled with Rising Disposal Incomes and Urbanization, Fuels Demand for the Market

    2. 1.2 Market Restraints

      1. 1.2.1 Various Regulatory Changes, Safety Standards, and Taxation Policies by the Government may Hamper the Market

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Vehicle Type

      1. 2.1.1 Two-wheelers

      2. 2.1.2 Passenger Cars

      3. 2.1.3 Commercial Vehicles

      4. 2.1.4 Three-wheelers

    2. 2.2 By Fuel Type

      1. 2.2.1 Diesel

      2. 2.2.2 Petrol/Gasoline

      3. 2.2.3 CNG and LPG

      4. 2.2.4 Electric

      5. 2.2.5 Others

    3. 2.3 By Region

      1. 2.3.1 North India

      2. 2.3.2 South India

      3. 2.3.3 East India

      4. 2.3.4 West India

Analysis Of Automobile Industry In India Market Size FAQs

The Analysis Of Automobile Industry In India Market size is expected to reach USD 126.67 billion in 2024 and grow at a CAGR of 8.20% to reach USD 187.85 billion by 2029.

In 2024, the Analysis Of Automobile Industry In India Market size is expected to reach USD 126.67 billion.

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