Key Highlights
- India's passenger vehicle market is expected to reach 9 million units by 2024
- The Indian automotive industry contributed approximately 7.2% to the country's GDP in 2022
- India is the fourth-largest automotive market in the world as of 2023
- Two-wheelers account for about 80% of vehicle sales in India
- The electric vehicle (EV) segment in India grew by 49.1% in 2022
- The auto parts manufacturing industry in India is valued at approximately $54 billion
- India had over 21 million passenger vehicles owned in 2022
- The automotive sector employed over 37 million people in 2022 in India
- Maruti Suzuki is the market leader in India with a market share of approximately 43% in 2023
- Fuel efficiency improvements have led to an average of 18 km/liter for passenger cars in India
- The average price of a new car in India increased by 9% in 2022 compared to 2021
- Tata Motors increased its market share in commercial vehicles to 45% in 2023
- The Indian auto industry is expected to invest over $20 billion in EV infrastructure by 2030
With India poised to become the fourth-largest automotive market in the world by 2023 and eyeing a staggering $150 billion EV industry by 2030, the nation’s auto sector is racing ahead on multiple fronts—from surging electric vehicle adoption to massive manufacturing growth and innovation-driven transformations.
Electric and Alternative Energy Vehicles
- The Indian auto industry is expected to invest over $20 billion in EV infrastructure by 2030
- The penetration of eco-friendly vehicles in India reached 33% in 2023, up from 20% in 2020
- The Indian automotive industry is investing over $1 billion annually in research and development
Electric and Alternative Energy Vehicles Interpretation
With over $20 billion slated for EV infrastructure and a rising eco-friendly vehicle share of 33% in 2023, India's automotive industry is undeniably steering toward a greener, smarter future—fuelled by innovation and substantial investments.
Industry Trends, Innovation, and Market Dynamics
- The electric vehicle (EV) segment in India grew by 49.1% in 2022
- Fuel efficiency improvements have led to an average of 18 km/liter for passenger cars in India
- The average price of a new car in India increased by 9% in 2022 compared to 2021
- Tata Motors increased its market share in commercial vehicles to 45% in 2023
- The penetration of telematics devices in Indian new vehicles reached 25% in 2022
- The hybrid vehicle segment in India grew by 35% in 2023
- The average age of vehicles on Indian roads is approximately 7 years
- India aims to achieve 80% EV adoption in public transport by 2030
- The annual compound growth rate of the Indian automotive industry between 2015-2020 was approximately 8%
- India's automotive finance industry is expected to grow at a CAGR of 12% until 2025
- The percentage of NGT-compliant vehicles in India increased from 20% in 2019 to over 70% in 2023
- The penetration of electric buses in Indian public transport increased by 50% in 2022
- The use of AI and automation in Indian automotive manufacturing increased by 30% in 2023
- The growth of ride-hailing services in India has led to a 15% increase in vehicle fleet utilization rates
- The average duration of vehicle ownership in India is approximately 4.5 years
- The Indian government announced plans to set up 2,600 EV charging stations along national highways by 2025
- The penetration of connected vehicles in India increased from 10% in 2020 to 40% in 2023
Industry Trends, Innovation, and Market Dynamics Interpretation
Despite a nearly 50% surge in EV adoption and a booming hybrid segment, Indian automakers are navigating higher prices and aging fleets, all while aiming for an ambitious 80% EV share in public transport by 2030 amidst a rapidly digitizing industry propelled by AI, telematics, and increasing consumer ownership cycles.
Manufacturing, Production, and Exports
- India’s automotive exports accounted for $13 billion USD in 2022
- India produced over 29 million vehicles in 2022
- The share of domestic automobile manufacturing capacity in India reached 53% in 2022
- Tamil Nadu remains the top auto manufacturing hub in India, with over 7 million vehicles produced annually
- The average monthly salary of automotive industry workers in India is around ₹35,000
- The Indian automobile industry ranks as the 5th largest globally in terms of annual production volume
- India's auto component exports to Europe grew by 22% in 2022
Manufacturing, Production, and Exports Interpretation
India's automotive industry, producing over 29 million vehicles and exporting $13 billion worth in 2022, exemplifies a robust and growing sector that not only ranks as the world's fifth-largest but also depends on a skilled workforce earning around ₹35,000 monthly—highlighting a blend of manufacturing dynamism and economic opportunity centered in Tamil Nadu, with exports thriving especially to Europe.
Market Overview and Industry Size
- India's passenger vehicle market is expected to reach 9 million units by 2024
- The Indian automotive industry contributed approximately 7.2% to the country's GDP in 2022
- India is the fourth-largest automotive market in the world as of 2023
- The auto parts manufacturing industry in India is valued at approximately $54 billion
- India had over 21 million passenger vehicles owned in 2022
- The automotive sector employed over 37 million people in 2022 in India
- Maruti Suzuki is the market leader in India with a market share of approximately 43% in 2023
- As of 2023, India has over 200 electric vehicle charging stations across major cities
- The used car market in India is projected to grow at a CAGR of 15% until 2025
- The number of EVs sold in India in 2023 reached approximately 1.75 million units
- Automobile sales in India increased by 18.2% in 2022 against the previous year
- The automotive aftermarket industry in India is valued at over $6 billion
- The total value of automotive aftermarket parts in India is projected to reach $12 billion by 2025
- The number of electric two-wheelers in India surpassed 1.2 million units in 2023
- The Indian luxury car market experienced a growth rate of approximately 12% in 2022
- India is expected to have over 370 million registered vehicles by 2025
- The Indian automotive industry is projected to create over 50 million new jobs by 2030
- The leading auto dealer network in India operates over 3,000 showrooms across the country
- The number of registered electric three-wheelers in India crossed 2 million in 2023
- The India EV market is projected to reach a valuation of $150 billion USD by 2030
Market Overview and Industry Size Interpretation
India’s automotive industry, boasting a 9-million-unit passenger vehicle market by 2024 and a vibrant electric vehicle surge, exemplifies both robust growth and a strategic shift toward sustainability—reminding us that in the world of cars, India is revving up for an electrified future while steering its economy onto the fast lane.
Vehicle Types and Market Segments
- Two-wheelers account for about 80% of vehicle sales in India
- Mahindra & Mahindra holds about 15% of the market share in the SUV segment in India as of 2023
Vehicle Types and Market Segments Interpretation
With two-wheelers dominating 80% of India’s vehicle sales and Mahindra & Minda claiming a solid 15% of the SUV market, India’s automotive landscape is a lively motorcycle parade led by a resilient SUV contender—highlighting a nation that values affordability and robustness in its transport choices.
Sources & References
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