Mordor Intelligence has published a new report on the India Automobile Industry, offering a comprehensive analysis of trends, growth drivers, and future projections.
Market Overview:
India Automobile Industry is undergoing a significant transformation, positioning itself as a global leader in automotive manufacturing and innovation. Valued at USD 137.06 billion in 2025, the industry is projected to expand to USD 203.25 billion by 2030, reflecting a compound annual growth rate (CAGR) of 8.2% during the forecast period.
This growth is fueled by increasing consumer demand, technological advancements, and supportive government policies aimed at promoting electric vehicles (EVs) and sustainable mobility solutions. India’s commitment to reducing carbon emissions and enhancing transportation infrastructure has attracted significant investments from both domestic and international stakeholders.
Key Trends Shaping the Indian Automobile Landscape
1. Surge in Electric Vehicle Adoption
The Indian EV market is experiencing rapid growth, with projections indicating a rise from USD 54.41 billion in 2025 to USD 110.74 billion by 2029, at a CAGR of 19.44% . Government initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and state-level incentives are accelerating EV adoption across the country.
2. Dominance of SUVs in Passenger Vehicle Segment
Sport Utility Vehicles (SUVs) have become increasingly popular among Indian consumers, accounting for a significant share of passenger vehicle sales. In fiscal year 2025, strong demand for larger SUVs offset weaker sales in smaller cars and sedans, contributing to a record 4.3 million units sold.
3. Growth in Used Car Market
The Indian used car market is witnessing substantial growth, expected to reach USD 36.39 billion in 2025 and USD 73.52 billion by 2030, with a CAGR of 15.1% . Factors such as increased affordability, wider availability, and improved financing options are driving this trend.
Market Segmentation: Diverse Offerings for Varied Preferences
By Vehicle Type
-
Passenger Vehicles: Including hatchbacks, sedans, and SUVs, this segment caters to individual and family transportation needs.
-
Commercial Vehicles: Encompassing trucks, buses, and vans, serving logistics and public transportation sectors.
-
Two-Wheelers: Comprising motorcycles and scooters, dominating the market due to affordability and convenience.
-
Three-Wheelers: Used primarily for short-distance transport and goods carriage in urban and semi-urban areas.
By Fuel Type
-
Internal Combustion Engine (ICE) Vehicles: Traditional petrol and diesel-powered vehicles.
-
Electric Vehicles (EVs): Battery-powered vehicles gaining popularity due to environmental benefits and government support.
-
Hybrid Vehicles: Combining ICE and electric powertrains for improved fuel efficiency.
By Region
-
Northern India: A significant market with high demand for various vehicle types.
-
Western India: A growing market with increasing urbanization and infrastructure development.
-
Eastern India: An emerging market with untapped potential for automotive growth.
Explore Our Full Library of Automotive Research Industry Reports:
https://www.mordorintelligence.com/market-analysis/automotive
Key Players Driving Innovation and Market Growth
Maruti Suzuki India Ltd.
As the leading passenger vehicle manufacturer, Maruti Suzuki offers a wide range of vehicles catering to various customer segments. The company is expanding its portfolio to include electric and hybrid models to meet evolving consumer preferences.
Tata Motors Limited
Tata Motors is a prominent player in both passenger and commercial vehicle segments. The company is investing heavily in electric mobility solutions, with models like the Nexon EV gaining popularity.
Mahindra & Mahindra Ltd.
Mahindra & Mahindra is a key player in the SUV and commercial vehicle markets. The company is focusing on electric vehicle development, with plans to launch new EV models in the coming years.
Honda Cars India Ltd.
Honda offers a range of sedans and SUVs in the Indian market. The company is exploring opportunities in the electric and hybrid vehicle segments to align with market trends.
Conclusion: Navigating the Road Ahead
India’s automobile industry is poised for significant growth, driven by technological advancements, changing consumer preferences, and supportive government policies. The shift towards electric mobility, increasing demand for SUVs, and expansion of manufacturing capabilities are key factors shaping the industry’s future. As the market continues to evolve, stakeholders must adapt to emerging trends and invest in innovation to maintain a competitive edge.
Industry Related Reports
Iran Automobile Industry: The Iran Automobile Industry Report includes coverage of Iranian automobile companies and is segmented by vehicle type—passenger cars, commercial vehicles, and motorcycles—and by manufacturer type, which includes auto ancillaries, engine manufacturers, and other types of manufacturers.
Ghana Automobile Industry: The Ghana Automobile Industry Report is segmented by vehicle type—passenger cars, commercial vehicles, two-wheelers, and three-wheelers—by propulsion type, including internal combustion engine vehicles and electric vehicles, and by vehicle category, covering both new and used vehicles.
Africa’s Automotive Market: The report provides insights into Africa’s automotive market share and car sales by country. It segments the market by vehicle type—passenger cars and commercial vehicles—and by country, including South Africa, Morocco, Algeria, Egypt, Nigeria, Ghana, Kenya, and the rest of Africa.