The India passenger car market size reached USD 0.06 Trillion in 2024. Looking forward, IMARC Group expects the market to reach USD 0.11 Trillion by 2033, exhibiting a growth rate (CAGR) of 6.80% during 2025-2033. Rising urbanization and government incentives are driving the India passenger car market share, contributing significantly to the automotive industry. Besides this, expanding road infrastructure, tax benefits, and electric vehicle (EV) subsidies are making car ownership more accessible, catalyzing the overall demand.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 0.06 Trillion |
Market Forecast in 2033 | USD 0.11 Trillion |
Market Growth Rate 2025-2033 | 6.80% |
Urbanization and Infrastructure Development
Urbanization and the development of infrastructure are playing a critical role in the India passenger car market outlook by improving connectivity, accessibility, and transportation efficiency. With more than 40% of India's population likely to live in cities by 2030, personal vehicle demand is increasing with more commuting needs and increased disposable income. Growing metropolitan zones and fast growth of tier-2 and tier-3 cities are giving rise to new customer segments for automotive manufacturers. The government is also heavily investing in infrastructure projects such as road widening, expressways, and smart city plans, enhancing the overall driving experience. Initiatives like Bharatmala and Gati Shakti are speeding up the construction of improved roads and highways, lowering travel time, and making the ownership of a car more desirable. Also, the introduction of multi-level parking lots and intelligent traffic systems in cities is resolving congestion challenges, further motivating car adoption. Better infrastructure further enhances the distribution and supply chains of automobile players, facilitating proper production and distribution. The availability of well-maintained highways facilitates long-distance travel, spurring demand for SUVs and luxury cars. As urbanization advances and infrastructure development grows, the market for passenger cars is anticipated to continue to grow steadily, responding to changing requirements.
Government Policies and Incentives
Government incentives and policies are major drivers consolidating the India passenger car market growth by making car ownership cheaper and enabling sustainable mobility. The government has implemented several tax incentives, subsidies, and regulatory policies to spur car sales and production. The cut in the Goods and Services Tax (GST) on smaller and electric vehicles (EVs) has decreased car prices, as they become cheaper for buyers. The Vehicle Scrappage Policy seeks to retire aged, dirty vehicles from circulation, promoting the uptake of newer, more efficient models. Furthermore, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative provides subsidies for EV buying and manufacturing incentives for batteries, propelling India towards electric mobility faster. Identifying the requirement for long-term EV adoption, governing agencies of Delhi have extended its incentives such as subsidies and road tax exemptions on EVs till March 31, 2025. It is a step towards curbing air pollution as well as reviving the incentives for EV buys that were discontinued from January 1, 2024. Delhi alone accounted for 10% of India's EV sales and had suffered in terms of slower adoption as a result of incentive withdrawal. In addition, the Government is investing in the installation of charging infrastructure for EVs and in road expansions, with schemes such as the Production-Linked Incentive (PLI) scheme luring foreign manufacturers, increasing domestic output and decreasing import dependency.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on vehicle type, fuel type, transmission type, and price segment.
Vehicle Type Insights:
The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes hatchback, sedan, and SUV/MPV.
Fuel Type Insights:
A detailed breakup and analysis of the market based on the fuel type have also been provided in the report. This includes petrol, diesel, electric, and others.
Transmission Type Insights:
The report has provided a detailed breakup and analysis of the market based on the transmission type. This includes automatic and manual.
Price Segment Insights:
A detailed breakup and analysis of the market based on the price segment have also been provided in the report. This includes economy, mid-range, and premium and luxury.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Trillion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Vehicle Types Covered | Hatchback, Sedan, SUV/MPV |
Fuel Types Covered | Petrol, Diesel, Electric, Others |
Transmission Types Covered | Automatic, Manual |
Price Segments Covered | Economy, Mid-Range, Premium and Luxury |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |