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The India - Automotive Market size is estimated to grow at a CAGR of 7.12% between 2022 and 2027. The market size is forecast to increase by USD 47.83 billion. The growth of the market depends on several factors such as the growing middle-class population, advances in the field of automotive technology and government initiatives and policies for easy automotive industry setup procedures.
This India Automotive Market report extensively covers market segmentation by type (two-wheelers, passenger cars, commercial vehicles, and three-wheelers), fuel type (diesel, petrol, CNG and LPG, and electric), and distribution Channel (offline and online). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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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.
Growing middle-class populations are notably driving the market growth. India's automotive industry is experiencing a surge in demand due to the increasing middle-class population in the country. As the country's economy continues to expand rapidly, more and more people are entering the middle-income range, which has led to an increase in purchasing power and a greater demand for cars. The changing consumer preferences have led to a shift in the way consumers purchase vehicles, with more emphasis being placed on features, convenience, and safety. As a result, manufacturers are responding to these demands by introducing models that are more cost-effective while still offering a wide range of features, particularly for the middle class.
Additionally, several international automobile manufacturers established manufacturing operations in India, such as Volkswagen Group, Toyota, Audi, and KIA, to meet the growing demand for both public and private vehicles. These components will expand the growth of the market in focus during the forecast period.
The rise in demand for electric vehicles is an emerging trend shaping the market growth. The Indian automotive 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 electric vehicles (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 electric vehicles 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 vendors is a significant challenge hindering the market growth. The India - automotive 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 Indian automotive 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 of vehicles that meet the changing needs of Indian consumers. The emergence of major automotive 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 India - automotive 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 forecast 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.
India Automotive 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 two-wheelers segment is estimated to witness significant growth during the forecast period. Two-wheelers are a key segment in the India - automotive 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 48.72 billion in 2017. 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 automotive market in India during the forecast period.
The India Automotive Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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India Automotive Market Scope |
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Report Coverage |
Details |
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Page number |
151 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.12% |
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Market growth 2023-2027 |
USD 47.83 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.81 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 Motors 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 |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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