Mordor Intelligence has published a new report on the India Automobile Industry, offering a comprehensive analysis of trends, growth drivers, and future projections.
The market size of the Automobile Industry in India is projected to be USD 126.67 billion in 2024 and is anticipated to grow to USD 187.85 billion by 2029, registering a Compound Annual Growth Rate (CAGR) of 8.20% during the forecast period (2024-2029).The heightened corporate focus on entering rural markets has been a key factor in propelling the growth of the Indian automobile industry. Additionally, the increasing activity in the logistics and passenger transportation sectors is fueling the demand for commercial vehicles.
Key Trends Driving the India Automobile Industry
- Surge in Two-Wheeler Demand
The two-wheeler segment is experiencing rapid growth, attributed to factors such as fuel efficiency, affordability, and ease of navigation in congested urban areas. Additionally, the increasing popularity of two-wheelers for touring purposes is contributing to this surge. Companies are collaborating with organized clubs to promote exploration of new destinations, further boosting demand.
2. Shift Towards Electric Vehicles (EVs)
The Indian government’s stringent regulations to curb vehicular emissions and the rising demand for eco-friendly vehicles are propelling the electric vehicle segment. Initiatives like the National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME I and II) have been instrumental in fostering interest in electric mobility. The introduction of a battery-swapping policy in the Union Budget 2022-2023 aims to enhance the viability of EVs for potential buyers.
3. Expansion of Rural Markets
Companies are increasingly focusing on tapping into rural markets, recognizing the untapped potential in these regions. The expansion of infrastructure and rising income levels in rural areas are creating new opportunities for automobile manufacturers.
Market Segmentation
The Indian automobile industry is segmented based on vehicle type, fuel type, and region:
- By Vehicle Type:
- Two-Wheelers: Comprising motorcycles, scooters, and mopeds, this segment dominates the market due to affordability and convenience.
- Passenger Cars: Includes hatchbacks, sedans, SUVs, and MPVs, catering to diverse consumer preferences.
- Commercial Vehicles: Encompasses light, medium, and heavy commercial vehicles used for goods and passenger transport.
- Three-Wheelers: Used primarily for commercial purposes, including auto-rickshaws and goods carriers.
2. By Fuel Type:
- Petrol/Gasoline: Widely used across vehicle segments due to availability and cost-effectiveness.
- Diesel: Preferred for commercial vehicles and certain passenger cars for better mileage.
- Electric: Gaining traction with government incentives and growing environmental awareness.
- CNG/LPG: Adopted for cost savings and lower emissions, especially in urban areas.
3. By Region:
- North India: A significant market with major manufacturing hubs and a large consumer base.
- East India: Emerging market with growing infrastructure development.
- West India: Home to key automotive companies and a robust industrial base.
- South India: Notable for its strong manufacturing sector and technological advancements.
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Key Players
The Indian automobile industry features several prominent players across different segments:
- Passenger Cars:
- Maruti Suzuki India Limited
- Tata Motors Limited
- Hyundai Motor Company
- Mahindra & Mahindra Limited
- Honda Cars India Ltd
- Two-Wheelers:
- Hero MotoCorp Limited
- Honda Motorcycle & Scooter India Pvt. Ltd
- TVS Motor Company
- Bajaj Auto Limited
- Royal Enfield
These companies are investing in research and development, expanding production capacities, and exploring new markets to maintain competitiveness.
Industry Related Reports:
Ghana Automobile Industry: The Ghana Automobile Industry Report is categorized by Vehicle Type (Passenger Cars, Commercial Vehicles, Two-Wheelers, and Three-Wheelers), Propulsion (Internal Combustion Engine and Electric Vehicles), and Type (New Vehicles and Used Vehicles).
Iran Automobile Industry: Iran’s Automobile Industry Report highlights Iranian automobile companies and is segmented by Vehicle Type (Passenger Cars, Commercial Vehicles, and Motorcycles) and Manufacturer Type (Auto Ancillaries, Engines, and Other Manufacturer Types).
Africa Automotive Industry: The report highlights Africa’s Automotive Market Share and Car Sales by Country, segmented by Vehicle Type (Passenger Cars and Commercial Vehicles) and Country (South Africa, Morocco, Algeria, Egypt, Nigeria, Ghana, Kenya, and the Rest of Africa).
Conclusion
The Indian automobile industry is on a robust growth path, driven by increasing consumer demand, supportive government policies, and technological advancements. The focus on electric mobility and expansion into rural markets are expected to further propel the industry’s growth. As key players continue to innovate and adapt to changing market dynamics, the industry is poised to achieve significant milestones in the coming years.
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