India Passenger Car Market Size

India Passenger Car Market Analysis

The India Passenger Car Market size is estimated at 39.82 billion USD in 2024, and is expected to reach 54.76 billion USD by 2030, growing at a CAGR of 5.45% during the forecast period (2024-2030).

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39.82 Billion

Market Size in 2024 (USD)

54.76 Billion

Market Size in 2030 (USD)

4.92 %

CAGR (2017-2023)

5.45 %

CAGR (2024-2030)

Largest Segment by Fuel Category

75.98 %

value share, Gasoline, 2023

Gasoline vehicles lead the market due to widespread refueling infrastructure, lower upfront costs compared to alternatives, and consumer familiarity with gasoline engines.

Fastest-growing Segment by Fuel Category

88.20 %

Projected CAGR, FCEV, 2024-2030

FCEVs are growing rapidly due to advancements in hydrogen technology, increased investment in hydrogen infrastructure, and the government's push for zero-emission vehicles.

Largest Segment by Vehicle Body Type

50.48 %

value share, Sports Utility Vehicle, 2023

SUVs dominate due to their spacious interiors, higher seating capacity, versatility in urban and rural areas, and increasing consumer preference for comfortable and robust vehicles.

Leading Market Player

42.79 %

market share, Maruti Suzuki India Limited, 2023

Being an Indian brand the company is widely spread, offering an affordable range of cars and efficient after-sales cost is capturing customers, making Maruti Suzuki the highest car seller in India.

Second leading Market Player

16.23 %

market share, Hyundai Motor India Limited, 2023

Hyundai remains in second place in Indian passenger car sales owing to strong brand recognition, a variety of product offerings including electric, and a strong supply chain network.

Indicates the growing customization and innovation in passenger cars, adapting to India's dynamic consumer demands and urban landscape

India Passenger Car Industry Segmentation

Passenger Cars are covered as segments by Vehicle Configuration. Hybrid and Electric Vehicles, ICE are covered as segments by Propulsion Type.

• The Indian passenger car market, categorized into hatchbacks, sedans, SUVs (sport utility vehicles), and MPVs (multi-purpose vehicles), offers insights into the diverse preferences and needs of Indian consumers, reflecting broader socio-economic trends and lifestyle aspirations. This segmentation underscores the market's intricacy and the drivers fueling growth in each vehicle category. Hatchbacks, historically pivotal in the Indian passenger car market, resonate with first-time buyers, middle-class families, and urban dwellers seeking practical, affordable, and efficient mobility solutions.
• Hatchbacks' popularity in India stems from their compact size, making them agile on congested city streets, as well as their relatively lower ownership and maintenance costs. With a plethora of manufacturers offering hatchbacks, consumers enjoy a wide array of choices in terms of pricing, features, and performance.
• Despite the intensifying competition, hatchbacks retain a substantial share of the market. Despite the growing competition from other segments, hatchbacks hold a significant market share due to their versatility and economic viability. SUVs have recently witnessed a meteoric rise in popularity, becoming the fastest-growing segment in the Indian passenger car market. The shift toward SUVs is driven by a combination of factors, including a growing preference for higher seating positions, more spacious interiors, and perceived safety advantages. Moreover, the broad spectrum of SUVs available, from compact and subcompact models to mid-size and full-size options, ensures an SUV to suit almost every budget and lifestyle requirement.