PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1647382
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1647382
Indian passenger vehicle sales were 4.1 million units in 2023 and are expected to reach 6.0 million units in 2030, at a CAGR of 5.6% from 2023 to 2030.
Scope of the Report | |
---|---|
Years Considered for the Study | 2023-2030 |
Base Year | 2023 |
Forecast Period | 2024-2030 |
Units Considered | Volume (Units) and Value (USD Million) |
Segments | Vehicle Type, Propulsion Type, and Body type. |
Regions covered | India |
The India automotive (PV+CV) market is expected to grow from 5.1 million units in 2023 to 7.5 million units in 2030, at a CAGR of 5.7%.
Thsse future of automotive in India is expected to experience growth driven by various factors. The automotive industry is rapidly evolving to adapt to customer demands and ever-evolving frontiers of technologies like 5G, AI and further improvements in ADAS technology and features. The rise in Pure Electric, Hybrids, and CNG sales has been a major trend in 2023 and is expected to continue well till 2030.
On the other hand, in the commercial vehicle segment, the electrification trend is diversified based on segments where LCVs have seen a rapid rise in electrification. By 2030, e-LCVs will constitute a significant portion of annual LCVs sold. Further, OEMs are investing in increasing their production capacity and all major OEMs like Maruti Suzuki, Hyundai,Tata Motors and others have invested to establish new production plants will 2030.
"EV sales pick up pace across all vehicle segments while hybrids and CNG also race ahead."
Battery Electric Vehicle sales in India have shown positive growth in 2023 and 2024, with OEMs like Tata Motors, Mahindra, Hyundai, and Maruti announcing and launching new BEV models. As battery prices reduce further, the total cost of ownership of BEVs has improved compared to ICE vehicles, which has been a major driver of the growth of BEVs, especially in the Urban and Semi-Urban Indian regions. On the other hand, CNG vehicles have witnessed much faster growth. OEMs like Maruti Suzuki, Tata Motors, etc. launching CNG trims of their existing vehicles. There are 25 CNG models available in the market, and is expected to rise further. Cheaper fuel and no range anxiety associated with CNGs are the major drivers for the growth of CNG cars.
"Electric Light commercial vehicles lead the electrification trend in commercial vehicle segment."
E-LCVs are projected to grow significantly by 2030 due to the rising demand for efficient and cost-effective commercial vehicles. Tata Motors currently leads the market, but other players have launched or are preparing to launch their E-LCVs soon. The electrification in commercial vehicles is expected to grow to 7% in 2030 from 0.6% in 2023. This electrification spree will be led by rapid rise of sales of electric vehicles in LCV sector which will have a share of 23% EVs by 2030 from 0.3% in 2023.
"Luxury segment is being re-defined by Electric Vehicles"
The luxury car segment and top trim of cars have seen a decent rise in sales due to the fast-growing High net-worth Individuals (HNI) in the country. With the EVs becoming a central to portfolios of all OEMs and all segments especially in luxury car segment, OEMs likes BMW, Mercedes, and also Indian OEMs like Mahindra and Tata Motors have started to offer a higher degree of luxury features. EVs, due to the presence of a large number of sensors and being operated by software to a large degree, provide OEMs a large scope for a more premium, personalized, luxurious experience to the user via a large number of features etc. This is also a major driver of growth in the penetration of connected cars in the Indian market as all EVs come factory-fitted with vehicle telematics systems.
"PLI scheme is a major driver of growth in the production of vehicles in India."
Under the Performance Linked Incentive scheme, the government of India has launched various programs for the automotive sector to increase the localization of auto component manufacturing and develop new technologies and production capacities for Electric Vehicles. This scheme has also focused on funding the development of newer battery chemistries that seek to reduce dependency on lithium. This has helped to boost domestic production and also helped to create a robust ecosystem and market for aftermarket components.
The market analysis encompasses the future of automotive in India, focusing on the sales volume of automotive sales (PV, CV, 2W, 3W) . Additionally, it examines the developments in the automotive industry in 2023. The report delves into the trends propelling the automotive sector, analyzing factors influencing the industry in 2030. The study encompasses a broad range, including Internal Combustion Engine (ICE) vehicles and Electric Vehicles (EVs), online sales of cars, the connected cars market in India, the manufacturing landscape, and an overview of the used cars market.
Report Scope
The report will help market leaders and new entrants in this market with information on the closest approximations of the sales numbers for the automotive market in 2023 and its subsegments. It will also help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.
_
_