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The India Automotive Market size is estimated to increase by USD 53.3 billion, at a CAGR of 7.46% between 2023 and 2028. The expansion of the market hinges on various factors, including the burgeoning middle-class populace, technological strides in automotive engineering, and government initiatives facilitating streamlined procedures for automotive industry establishment. However, the market faces obstacles such as intensifying company competition, constraints in infrastructure, and the accessibility and affordability of financing options for car purchases among the middle-class demographic.
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The two-wheelers segment is estimated to witness significant growth during the forecast period. Two-wheelers are a key segment in the market, accounting for a significant portion of sales and manufacturing. The country's population is expanding, urbanization is increasing, and disposable income is increasing, leading to a steady increase in the demand for these vehicles.
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The two-wheeler segment was the largest segment and was valued at USD 50.5 billion in 2018. Another important factor that shapes the market segmentation is design. Classic or retro motorcycles have become popular among enthusiasts because they combine a sense of nostalgia with modern technology. Classic motorcycles often feature vintage styling elements, such as round headlights, chrome highlights, and graceful lines. Cruiser bikes also have a unique look and feel. They are intended for long-distance travel with comfortable seating, bigger fuel tanks, and laid-back riding positions. All these factors under the two-wheeler segmentation will expand the growth of the market in India during the forecast period.
The automotive market encompasses the design, manufacturing, and selling of various types of motor vehicles, including passenger cars, two-wheelers, and three-wheelers. The market is witnessing significant development in the areas of connected automotive technology, real-time navigation, remote diagnostics, and autonomous driving technology. The demand for passenger vehicles, particularly cars, is on the rise due to the increasing middle class population and the shift towards green mobility solutions. Two-wheelers continue to dominate the market in terms of volume, while passenger cars and commercial vehicles account for a larger share of the revenue. The fuel type segment includes diesel, petrol, gasoline, electric, CNG or LPG, and others. The electric vehicle (EV) and hybrid vehicle segments are gaining popularity in urban areas due to their eco-friendly nature and the need for green mobility solutions. Automakers are focusing on manufacturing innovative designs and advanced technologies to cater to the evolving needs of consumers. The transport industry is also undergoing a transformation with the integration of technology into vehicles, making them smarter and more efficient. The development of compact SUVs is another trend that is expected to shape the automotive market in the coming years. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market is witnessing notable growth, primarily driven by the burgeoning middle-class population. With the rising population and increasing disposable income, there's a growing demand for vehicles, particularly in the passenger vehicle segment. The availability of credit and financing options further fuels this demand, especially in rural and semi-urban areas. The logistics sector, propelled by the boom in retail e-commerce, is driving demand for commercial vehicles, especially Light Commercial Vehicles (LCVs). Moreover, the adoption of electric vehicles (EVs) is gaining momentum, supported by government incentives and schemes like FAME, aimed at bolstering the EV infrastructure. With the automotive industry catering to diverse segments like passenger transportation and MPVs/MUVs/Vans, profit margins are also being positively impacted.
The rise in demand for electric vehicles is an emerging trend shaping the market growth. The industry is witnessing a surge in demand for electric vehicles, a phenomenon that can be attributed to a variety of factors, including government incentives, heightened environmental awareness, and advancements in technology. In India, government incentives and policies have been instrumental in encouraging the uptake of EVs. Initiatives such as the FAME scheme, which offers financial incentives to both purchasers and producers, have been instrumental in driving consumer investment in EVs. Furthermore, the GST reduction on EVs has made them more cost-effective than traditional vehicles. The demand for electric vehicles (EVs) in India is driven by a variety of environmental concerns, including air pollution and greenhouse gas emissions.
However, in India, air pollution is particularly prevalent, particularly in urban areas, and EVs are seen as a more environmentally friendly option than gasoline-powered cars. As a result, consumers are increasingly recognizing the importance of EVs in contributing to a greener and cleaner environment. These components will thereby drive the growth of the automotive market in India during the forecast period.
Increasing competition among players is a significant challenge hindering the market growth. The market has experienced a sharp increase in competition between vendors, resulting in a considerable challenge. The automobile industry has experienced a rapid expansion, resulting in both domestic and foreign players competing for a larger portion of the market. This has led to a heightened level of competition. The market has seen a surge in demand for vehicles due to the increasing middle-class population, leading to competition between vendors. Companies are attempting to provide a variety that meets the changing needs of Indian consumers. The emergence of major corporations has heightened the level of competition in India.
In addition, major international manufacturers are steadily increasing their presence in the country, taking advantage of their extensive knowledge and cutting-edge technology to gain a substantial portion of the market. This has put additional pressure on domestic suppliers, prompting them to improve their products and strategies to remain competitive. These factors will hamper the growth of the market in focus during the market forecasting period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bajaj Auto Ltd. - The company focuses on offering automotive such as three-wheelers and two-wheelers includes RE E TEC 9.0, RE and Maxima electric three-wheelers and Pulsar, Dominar, Avenger two wheelers.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The Automobile Industry encompasses the design, manufacturing, and selling of various types of vehicles, including Passenger Cars, Two-Wheelers, and Three-Wheelers. The industry caters to diverse consumer segments, with Middle-class consumers being a significant market. The Automotive sector is driven by Corporate interest and the need for Passenger transportation. Two-Wheeler Industry focuses on Gasoline, Petrol, and CNG or LPG-powered vehicles, while Passenger Car manufacturing includes Diesel, Gasoline, Electric, and Hybrid electric vehicles. Development in the Automotive Industry is influenced by Emissions standards, Logistics, and the Transport industry. Automotive exports are crucial for the growth of the sector, with Electric vehicles gaining popularity due to their eco-friendly nature. Automakers invest in designing and manufacturing Cars and Passenger vehicles to cater to the increasing demand. The Government plays a crucial role in the industry through subsidies and the Phased Manufacturing Proposal. The Two-wheeler industry is also witnessing a shift towards Electric vehicles, with the establishment of Public charging stations. The future of the Automotive Industry lies in the development of Batteries, Hybrid electric vehicles, Autonomous vehicles, and Driverless vehicles.
Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.46% |
Market growth 2024-2028 |
USD 53.3 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.41 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bajaj Auto Ltd., Daimler Truck AG, Eicher Motors Ltd., Force Motors Ltd., Ford Motor Co., General Motors Co., Hero Motors Co., Hinduja Group Ltd., Hindustan Motors Ltd., Honda Motor Co. Ltd., Hyundai Motor Co., KIA CORP., Mahindra and Mahindra Ltd., Nissan Motor Co. Ltd., Piaggio and C. Spa, Renault SAS, Suzuki Motor Corp., Tata Motors Ltd., TVS Motor Co. Ltd., and Volkswagen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Fuel Type
8 Market Segmentation by Distribution Channel
9 Customer Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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