India Passenger Car Market

Detailed research report on India’s passenger car market, featuring market analysis, industry insights, size, and forecast up to 2030.

The India Passenger Car Market is segmented by Vehicle Configuration (Passenger Cars) and by Propulsion Type (Hybrid and Electric Vehicles, ICE). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

India Passenger Car Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

India Passenger Car Market Size

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India Passenger Car Market Summary
Study Period 2017 - 2029
Base Year For Estimation 2024
Forecast Data Period 2025 - 2029
Market Size (2025) USD 42.72 Billion
Market Size (2029) USD 53.04 Billion
CAGR (2025 - 2029) 5.56 %
Market Concentration High

Major Players

India Passenger Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

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India Passenger Car Market Analysis

The India Passenger Car Market size is estimated at 42.72 billion USD in 2025, and is expected to reach 53.04 billion USD by 2029, growing at a CAGR of 5.56% during the forecast period (2025-2029).

The Indian passenger car industry is experiencing significant structural transformation, driven by changing consumer preferences and technological advancements. Major automotive manufacturers are expanding their production capabilities, with companies like Maruti Suzuki leading the market share of cars in India with a 41.6% share in 2023. The industry has witnessed substantial consolidation through strategic partnerships and joint ventures, exemplified by the merger of Volkswagen India, Volkswagen Group Sales India, and `koda Auto India into a single entity - `koda Auto Volkswagen India Pvt. Ltd. These consolidations have strengthened manufacturing capabilities and enhanced operational efficiency, allowing companies to better serve the evolving market demands.


The market landscape is increasingly characterized by technological integration and innovation across vehicle categories. Manufacturers are incorporating advanced features such as connected car technologies, enhanced safety systems, and improved fuel efficiency solutions. The charging infrastructure has seen remarkable expansion, with the number of publicly available charging stations reaching 10,900 in 2022, supporting the growing electric vehicle segment. This technological evolution has been accompanied by significant investments in research and development, with companies like Tata Motors and Hyundai introducing advanced driver assistance systems and connected vehicle features.


The financing landscape has become more favorable for consumers, with auto loan interest rates decreasing to 8.567% in 2022, making vehicle purchases more accessible. This financial environment has contributed to increased market activity and consumer confidence. The industry has also witnessed a shift in manufacturing strategies, with companies focusing on localization and indigenous production to optimize costs and enhance competitiveness. Major manufacturers are establishing new production facilities and expanding existing ones to meet the growing demand and achieve economies of scale.


Consumer preferences are evolving rapidly, with a notable trend toward premium features and larger vehicles, particularly SUVs. The automotive industry in India has responded with a wider range of vehicle options across different price points, catering to diverse consumer segments. Consumer spending on vehicles is projected to reach USD 114.2 million by 2030, indicating strong future growth potential. This trend is supported by the introduction of new models with advanced features, improved safety standards, and enhanced comfort levels, reflecting the market's maturation and consumers' increasing sophistication in their vehicle choices.

Segment Analysis: Vehicle Configuration

SUV Segment in Indian Passenger Car Market

Sport Utility Vehicles (SUVs) have emerged as the dominant force in India's passenger vehicle market share, commanding approximately 41% car market share in 2024, with sales projected to reach 1,370,655 units. This segment's leadership position is attributed to several factors, including increasing consumer preference for higher ground clearance, a commanding driving position, and versatile usage capabilities across both urban and rural environments. The segment is also experiencing the fastest growth trajectory among all vehicle configurations, with an expected growth rate of around 4.5% from 2024 to 2029. This growth is being fueled by continuous technological advancements, the introduction of new models across various price points, and the increasing adoption of electric and hybrid powertrains in the SUV segment. The segment's robust performance is further strengthened by manufacturers' focus on launching feature-rich models that cater to diverse consumer preferences, from compact SUVs for urban mobility to premium SUVs for luxury seekers.

Market Analysis of India Passenger Car Market: Chart for Vehicle Configuration

Remaining Segments in Vehicle Configuration

The Indian passenger car market's remaining segments consist of hatchbacks, Multi-Purpose Vehicles (MPVs), and sedans, each serving distinct consumer needs and preferences. Hatchbacks continue to maintain their significance as the second-largest segment, particularly appealing to first-time car buyers and urban families seeking compact, fuel-efficient vehicles. The MPV segment has carved out its niche by catering to large families and fleet operators, offering superior space utilization and flexibility. Meanwhile, the sedan segment, while smaller in volume, maintains its appeal among premium car buyers and corporate customers who prioritize comfort and sophisticated styling. These segments are witnessing significant technological upgrades, particularly in terms of safety features, connected car technologies, and the introduction of alternative fuel variants, ensuring their continued relevance in the evolving automotive landscape.

Segment Analysis: Propulsion Type

ICE Segment in Indian Passenger Car Market

The Internal Combustion Engine (ICE) segment continues to dominate the Indian passenger vehicle market share in India, commanding approximately 94% vehicle market share in 2024. This substantial market presence is underpinned by several factors, including the well-established infrastructure for fuel distribution, lower initial vehicle costs compared to alternative powertrains, and widespread consumer familiarity with ICE technology. The segment's strength is further reinforced by the extensive service network across both urban and rural areas, making maintenance and repairs readily accessible. Additionally, recent technological advancements in ICE vehicles, particularly in fuel efficiency and emission reduction, have helped maintain their appeal among cost-conscious Indian consumers. The segment also benefits from the diverse range of vehicle options across different price points, from entry-level hatchbacks to premium SUVs, catering to varied consumer preferences and budgets.

xEV Segment in Indian Passenger Car Market

The Hybrid and Electric Vehicle (xEV) segment is experiencing remarkable growth in the Indian passenger car market, driven by increasing environmental consciousness and supportive government policies. The segment is projected to grow at an impressive rate of approximately 88% between 2024 and 2029, marking it as the fastest-growing propulsion segment. This extraordinary growth trajectory is supported by several factors, including the government's push towards electric mobility through initiatives like the FAME scheme, expanding charging infrastructure across major cities, and increasing consumer awareness about sustainable transportation. Automotive manufacturers are responding to this trend by introducing a wider range of hybrid and electric vehicles, from affordable city cars to premium SUVs. The segment's growth is further catalyzed by advancements in battery technology, resulting in improved range and performance, alongside decreasing battery costs making xEVs more accessible to a broader consumer base.

India Passenger Car Industry Overview

Top Companies in India Passenger Car Market

The Indian passenger car market is led by major manufacturers, including all car companies in India such as Maruti Suzuki, Hyundai Motor, Tata Motors, Mahindra & Mahindra, and Kia Corporation. These companies have demonstrated a strong commitment to product innovation through the introduction of advanced technologies, particularly in electric and hybrid vehicles, while also expanding their CNG vehicle portfolios to meet evolving consumer preferences. Operational agility has been enhanced through strategic manufacturing facility expansions, modernization of production lines, and strengthening of supply chain networks. Companies have pursued strategic partnerships focused on technology development, especially in areas like electric mobility, connected vehicles, and autonomous driving capabilities. Market leaders have also shown dedication to geographical expansion through new dealership networks, service centers, and regional offices, while simultaneously investing in research and development facilities to maintain technological leadership.

Domestic Players Dominate Indian Auto Market

The Indian passenger car market exhibits a unique characteristic where domestic players command a significant portion of the car brand market share in India, with Maruti Suzuki leading the pack, followed by homegrown manufacturers like Tata Motors and Mahindra & Mahindra. These companies leverage their deep understanding of local consumer preferences, established distribution networks, and strong after-sales service infrastructure to maintain their market positions. International players like Hyundai, Kia, and Toyota have successfully carved out their niches through localized product offerings, competitive pricing strategies, and a focus on specific vehicle segments such as SUVs and premium vehicles. The market has also witnessed the entry of new players, particularly in the electric vehicle segment, indicating its attractiveness and growth potential.


The market shows moderate consolidation with the top five players accounting for a substantial share of total sales, while still maintaining healthy competition across different vehicle segments. Merger and acquisition activities have been primarily focused on technology acquisition, particularly in areas like electric mobility and connected car technologies. Companies are increasingly forming strategic alliances and joint ventures to share development costs, access new technologies, and expand their market reach, rather than pursuing outright acquisitions. This trend reflects the industry's focus on collaborative growth and technological advancement rather than mere market consolidation.

Innovation and Sustainability Drive Future Growth

For incumbent players to maintain and increase their car company market share, a focus on electric vehicle development, connected car technologies, and sustainable manufacturing practices will be crucial. Companies need to invest in developing affordable electric vehicles while maintaining their conventional vehicle portfolio to cater to diverse consumer segments. Building strong digital capabilities, enhancing direct-to-consumer channels, and offering innovative ownership models will be essential for success. Market leaders must also focus on strengthening their supply chain resilience, expanding their charging infrastructure for electric vehicles, and developing strong financing solutions to maintain their competitive edge.


New entrants and challenger brands can gain ground by focusing on specific market segments or technologies rather than competing across all segments. Success will depend on offering innovative features, superior customer experience, and competitive pricing while building a strong brand identity. Companies must also consider potential regulatory changes, particularly around emission norms and safety standards, which could significantly impact market dynamics. The risk of substitution from alternative mobility solutions like ride-sharing services needs to be addressed through innovative ownership models and value-added services. Building strong relationships with suppliers, dealers, and technology partners while maintaining operational efficiency will be crucial for long-term success in this competitive market.

India Passenger Car Market Leaders

  1. Hyundai Motor India Limited

  2. Kia Corporation

  3. Mahindra & Mahindra Limited

  4. Maruti Suzuki India Limited

  5. Tata Motors Limited

  6. *Disclaimer: Major Players sorted in no particular order
India Passenger Car Market Concentration
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India Passenger Car Market News

  • August 2023: Gabriel India Limited (Gabriel India), a flagship company of Anand Group, announced that during the quarter that ended on June 30, 2023, it developed components for Maruti Suzuki Jimny and Stellantis electric Citroen C3. At present, it is developing parts for new models of VW, Tata, Stellantis, Mahindra, and Maruti Suzuki.
  • August 2023: Hyundai Motor India Limited (HMIL) signed an asset purchase agreement (APA), in Gurugram, Haryana, for the acquisition and assignment of identified assets related to General Motors India (GMI)’s Talegaon Plant in Maharashtra.
  • August 2023: Mahindra Electric Automobiles Limited (MEAL), a subsidiary of Mahindra & Mahindra, unveiled the “Vision Thar.e,” an electric avatar of the Thar SUV, at its Futurescape event in Cape Town, South Africa. The Thar.e boldly strides into the future on the INGLO-born electric platform, equipped with a cutting-edge high-performance AWD electric powertrain.

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For the Vehicle Hub report, we provide an extensive collection of over 150 free charts, delivering detailed insights on regional and country-level dynamics within the vehicle industry. This encompasses in-depth analyses of vehicle registrations, usage patterns in both consumer and business segments, and evaluations of various vehicle configurations and body types. The report delves into critical industrial trends such as shifts in vehicle production and distribution centers, changes in vehicle ownership costs, and advancements in automotive technologies. Further, our report offers comprehensive market segmentation by vehicle type, body type, propulsion, and fuel categories, providing a nuanced understanding of the market landscape. It also explores the adoption rate of new technologies, the impact of regulatory changes, and the influence of economic factors on the vehicle market. We include a thorough examination of key industry players, regulatory frameworks, and market size in terms of both revenue and unit sales, leading to strategic projections and forecasts that account for emerging trends and potential shifts in the industry.

India Passenger Car Market
India Passenger Car Market
India Passenger Car Market
India Passenger Car Market

India Passenger Car Market Report - Table of Contents

1. EXECUTIVE SUMMARY & KEY FINDINGS

2. REPORT OFFERS

3. INTRODUCTION

  • 3.1 Study Assumptions & Market Definition
  • 3.2 Scope of the Study​
  • 3.3 Research Methodology

4. KEY INDUSTRY TRENDS

  • 4.1 Population
  • 4.2 GDP Per Capita
  • 4.3 Consumer Spending For Vehicle Purchase (cvp)
  • 4.4 Inflation
  • 4.5 Interest Rate For Auto Loans
  • 4.6 Shared Rides
  • 4.7 Impact Of Electrification
  • 4.8 EV Charging Station
  • 4.9 Battery Pack Price
  • 4.10 New Xev Models Announced
  • 4.11 Used Car Sales
  • 4.12 Fuel Price
  • 4.13 Oem-wise Production Statistics
  • 4.14 Regulatory Framework
  • 4.15 Value Chain & Distribution Channel Analysis

5. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

  • 5.1 Vehicle Configuration
    • 5.1.1 Passenger Cars
    • 5.1.1.1 Hatchback
    • 5.1.1.2 Multi-purpose Vehicle
    • 5.1.1.3 Sedan
    • 5.1.1.4 Sports Utility Vehicle
  • 5.2 Propulsion Type
    • 5.2.1 Hybrid and Electric Vehicles
    • 5.2.1.1 By Fuel Category
    • 5.2.1.1.1 BEV
    • 5.2.1.1.2 FCEV
    • 5.2.1.1.3 HEV
    • 5.2.1.1.4 PHEV
    • 5.2.2 ICE
    • 5.2.2.1 By Fuel Category
    • 5.2.2.1.1 CNG
    • 5.2.2.1.2 Diesel
    • 5.2.2.1.3 Gasoline
    • 5.2.2.1.4 LPG

6. COMPETITIVE LANDSCAPE

  • 6.1 Key Strategic Moves
  • 6.2 Market Share Analysis
  • 6.3 Company Landscape
  • 6.4 Company Profiles
    • 6.4.1 Honda Cars India Limited
    • 6.4.2 Hyundai Motor India Limited
    • 6.4.3 Kia Corporation
    • 6.4.4 Mahindra & Mahindra Limited
    • 6.4.5 Maruti Suzuki India Limited
    • 6.4.6 MG Motor India Private Limited
    • 6.4.7 Nissan Motor India Pvt. Ltd.
    • 6.4.8 Renault India Pvt. Ltd.
    • 6.4.9 Tata Motors Limited
    • 6.4.10 Toyota Kirloskar Motor Pvt. Ltd.
    • 6.4.11 Volkswagen AG
    • 6.4.12 Škoda Auto Volkswagen India Pvt. Ltd.
  • *List Not Exhaustive

7. KEY STRATEGIC QUESTIONS FOR VEHICLES CEOS

8. APPENDIX

  • 8.1 Global Overview
    • 8.1.1 Overview
    • 8.1.2 Porter’s Five Forces Framework
    • 8.1.3 Global Value Chain Analysis
    • 8.1.4 Market Dynamics (DROs)
  • 8.2 Sources & References
  • 8.3 List of Tables & Figures
  • 8.4 Primary Insights
  • 8.5 Data Pack
  • 8.6 Glossary of Terms
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List of Tables & Figures

  1. Figure 1:  
  2. POPULATION TRENDS, VOLUME IN UNITS, INDIA, 2017 - 2030
  1. Figure 2:  
  2. GDP PER CAPITA AT CURRENT PRICES, VALUE IN USD, INDIA, 2017 - 2030
  1. Figure 3:  
  2. AVERAGE CONSUMER SPENDING PER CAPITA ON PURCHASE OF VEHICLES, VALUE IN USD, INDIA, 2017 - 2030
  1. Figure 4:  
  2. INFLATION RATE AT AVERAGE CONSUMER PRICES, PERCENTAGE CHANGE, INDIA, 2017 - 2030
  1. Figure 5:  
  2. AUTO LOAN INTEREST RATES, PERCENTAGE, INDIA, 2017 - 2022
  1. Figure 6:  
  2. USED CAR MARKET, REVENUE IN USD, INDIA, 2017 - 2030
  1. Figure 7:  
  2. ELECTRIC VEHICLE MARKET PENETRATION RATE, BY VEHICLE TYPE, PERCENTAGE OF VOLUME, INDIA, 2017 - 2030
  1. Figure 8:  
  2. CHARGING STATION DEPLOYMENT, BY TYPE, VOLUME IN UNITS, INDIA, 2017 - 2022
  1. Figure 9:  
  2. AVERAGE LITHIUM-ION BATTERY PACK PRICE, VALUE IN USD, INDIA, 2017 - 2030
  1. Figure 10:  
  2. ANNOUNCEMENT OF NEW XEV MODELS, BY VEHICLE TYPE, VOLUME IN UNITS, INDIA, 2023 - 2027
  1. Figure 11:  
  2. USED CAR MARKET, REVENUE IN USD, INDIA, 2017 - 2030
  1. Figure 12:  
  2. FUEL PRICE, BY FUEL TYPE, USD/LITER, INDIA, 2017 - 2022
  1. Figure 13:  
  2. OEM-WISE PRODUCTION STATISTICS, VOLUME IN UNITS, INDIA, 2017 - 2022
  1. Figure 14:  
  2. INDIA PASSENGER CAR MARKET, VOLUME IN UNITS, 2017 - 2030
  1. Figure 15:  
  2. INDIA PASSENGER CAR MARKET, VALUE IN USD, 2017 - 2030
  1. Figure 16:  
  2. INDIA PASSENGER CAR MARKET, BY VEHICLE BODY TYPE, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 17:  
  2. INDIA PASSENGER CAR MARKET, BY VEHICLE BODY TYPE, BY VALUE IN USD, 2017 - 2030
  1. Figure 18:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY VEHICLE BODY TYPE, 2017 - 2030
  1. Figure 19:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY VEHICLE BODY TYPE, 2017 - 2030
  1. Figure 20:  
  2. INDIA PASSENGER CAR MARKET, BY HATCHBACK, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 21:  
  2. INDIA PASSENGER CAR MARKET, BY HATCHBACK, BY VALUE IN USD, 2017 - 2030
  1. Figure 22:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY VEHICLE BODY TYPE, 2017 - 2030
  1. Figure 23:  
  2. INDIA PASSENGER CAR MARKET, BY MULTI-PURPOSE VEHICLE, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 24:  
  2. INDIA PASSENGER CAR MARKET, BY MULTI-PURPOSE VEHICLE, BY VALUE IN USD, 2017 - 2030
  1. Figure 25:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY VEHICLE BODY TYPE, 2017 - 2030
  1. Figure 26:  
  2. INDIA PASSENGER CAR MARKET, BY SEDAN, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 27:  
  2. INDIA PASSENGER CAR MARKET, BY SEDAN, BY VALUE IN USD, 2017 - 2030
  1. Figure 28:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY VEHICLE BODY TYPE, 2017 - 2030
  1. Figure 29:  
  2. INDIA PASSENGER CAR MARKET, BY SPORTS UTILITY VEHICLE, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 30:  
  2. INDIA PASSENGER CAR MARKET, BY SPORTS UTILITY VEHICLE, BY VALUE IN USD, 2017 - 2030
  1. Figure 31:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY VEHICLE BODY TYPE, 2017 - 2030
  1. Figure 32:  
  2. INDIA PASSENGER CAR MARKET, BY PROPULSION TYPE, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 33:  
  2. INDIA PASSENGER CAR MARKET, BY PROPULSION TYPE, BY VALUE IN USD, 2017 - 2030
  1. Figure 34:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
  1. Figure 35:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
  1. Figure 36:  
  2. INDIA PASSENGER CAR MARKET, BY FUEL CATEGORY, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 37:  
  2. INDIA PASSENGER CAR MARKET, BY FUEL CATEGORY, BY VALUE IN USD, 2017 - 2030
  1. Figure 38:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 39:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 40:  
  2. INDIA PASSENGER CAR MARKET, BY BEV, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 41:  
  2. INDIA PASSENGER CAR MARKET, BY BEV, BY VALUE IN USD, 2017 - 2030
  1. Figure 42:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 43:  
  2. INDIA PASSENGER CAR MARKET, BY FCEV, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 44:  
  2. INDIA PASSENGER CAR MARKET, BY FCEV, BY VALUE IN USD, 2017 - 2030
  1. Figure 45:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 46:  
  2. INDIA PASSENGER CAR MARKET, BY HEV, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 47:  
  2. INDIA PASSENGER CAR MARKET, BY HEV, BY VALUE IN USD, 2017 - 2030
  1. Figure 48:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 49:  
  2. INDIA PASSENGER CAR MARKET, BY PHEV, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 50:  
  2. INDIA PASSENGER CAR MARKET, BY PHEV, BY VALUE IN USD, 2017 - 2030
  1. Figure 51:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 52:  
  2. INDIA PASSENGER CAR MARKET, BY FUEL CATEGORY, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 53:  
  2. INDIA PASSENGER CAR MARKET, BY FUEL CATEGORY, BY VALUE IN USD, 2017 - 2030
  1. Figure 54:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 55:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 56:  
  2. INDIA PASSENGER CAR MARKET, BY CNG, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 57:  
  2. INDIA PASSENGER CAR MARKET, BY CNG, BY VALUE IN USD, 2017 - 2030
  1. Figure 58:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 59:  
  2. INDIA PASSENGER CAR MARKET, BY DIESEL, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 60:  
  2. INDIA PASSENGER CAR MARKET, BY DIESEL, BY VALUE IN USD, 2017 - 2030
  1. Figure 61:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 62:  
  2. INDIA PASSENGER CAR MARKET, BY GASOLINE, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 63:  
  2. INDIA PASSENGER CAR MARKET, BY GASOLINE, BY VALUE IN USD, 2017 - 2030
  1. Figure 64:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 65:  
  2. INDIA PASSENGER CAR MARKET, BY LPG, BY VOLUME IN UNITS, 2017 - 2030
  1. Figure 66:  
  2. INDIA PASSENGER CAR MARKET, BY LPG, BY VALUE IN USD, 2017 - 2030
  1. Figure 67:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
  1. Figure 68:  
  2. INDIA PASSENGER CAR MARKET, MOST ACTIVE COMPANIES, BY NUMBER OF STRATEGIC MOVES, 2017 - 2030
  1. Figure 69:  
  2. INDIA PASSENGER CAR MARKET, MOST ADOPTED STRATEGIES, 2017 - 2030
  1. Figure 70:  
  2. INDIA PASSENGER CAR MARKET SHARE(%), BY MAJOR PLAYERS

India Passenger Car Industry Segmentation

Passenger Cars are covered as segments by Vehicle Configuration. Hybrid and Electric Vehicles, ICE are covered as segments by Propulsion Type.
Vehicle Configuration Passenger Cars Hatchback
Multi-purpose Vehicle
Sedan
Sports Utility Vehicle
Propulsion Type Hybrid and Electric Vehicles By Fuel Category BEV
FCEV
HEV
PHEV
ICE By Fuel Category CNG
Diesel
Gasoline
LPG
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Market Definition

  • Vehicle Type - The category includes passenger cars.
  • Vehicle Body Type - This include various body types such as Hatchbacks, Sedans, Sports Utility Vehicles, and Multi-purpose Vehicles.
  • Fuel Category - The category includes various fuel types such as Gasoline, Diesel, LPG (Liquefied Petroleum Gas), CNG (Compressed Natural Gas), HEV (Hybrid Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), BEV (Battery Electric Vehicles), and FCEV (Fuel Cell Electric Vehicles)
Keyword Definition
Electric Vehicle (EV) A vehicle which uses one or more electric motors for propulsion. Includes cars, buses, and trucks. This term includes all-electric vehicles or battery electric vehicles and plug-in hybrid electric vehicles.
BEV A BEV relies completely on a battery and a motor for propulsion. The battery in the vehicle must be charged by plugging it into an outlet or public charging station. BEVs do not have an ICE and hence are pollution-free. They have a low cost of operation and reduced engine noise as compared to conventional fuel engines. However, they have a shorter range and higher prices than their equivalent gasoline models.
PEV A plug-in electric vehicle is an electric vehicle that can be externally charged and generally includes all-electric vehicles as well as plug-in hybrids.
Plug-in Hybrid EV A vehicle that can be powered either by an ICE or an electric motor. In contrast to normal hybrid EVs, they can be charged externally.
Internal combustion engine An engine in which the burning of fuels occurs in a confined space called a combustion chamber. Usually run with gasoline/petrol or diesel.
Hybrid EV A vehicle powered by an ICE in combination with one or more electric motors that use energy stored in batteries. These are continually recharged with power from the ICE and regenerative braking.
Commercial Vehicles Commercial vehicles are motorized road vehicles designed for transporting people or goods. The category includes light commercial vehicles (LCVs) and medium and heavy-duty vehicles (M&HCV).
Passenger Vehicles Passenger cars are electric motor– or engine-driven vehicles with at least four wheels. These vehicles are used for the transport of passengers and comprise no more than eight seats in addition to the driver’s seat.
Light Commercial Vehicles Commercial vehicles that weigh less than 6,000 lb (Class 1) and in the range of 6,001–10,000 lb (Class 2) are covered under this category.
M&HDT Commercial vehicles that weigh in the range of 10,001–14,000 lb (Class 3), 14,001–16,000 lb (Class 4), 16,001–19,500 lb (Class 5), 19,501–26,000 lb (Class 6), 26,001–33,000 lb (Class 7) and above 33,001 lb (Class 8) are covered under this category.
Bus A mode of transportation that typically refers to a large vehicle designed to carry passengers over long distances. This includes transit bus, school bus, shuttle bus, and trolleybuses.
Diesel It includes vehicles that use diesel as their primary fuel. A diesel engine vehicle have a compression-ignited injection system rather than the spark-ignited system used by most gasoline vehicles. In such vehicles, fuel is injected into the combustion chamber and ignited by the high temperature achieved when gas is greatly compressed.
Gasoline It includes vehicles that use gas/petrol as their primary fuel. A gasoline car typically uses a spark-ignited internal combustion engine. In such vehicles, fuel is injected into either the intake manifold or the combustion chamber, where it is combined with air, and the air/fuel mixture is ignited by the spark from a spark plug.
LPG It includes vehicles that use LPG as their primary fuel. Both dedicated and bi-fuel LPG vehicles are considered under the scope of the study.
CNG It includes vehicles that use CNG as their primary fuel. These are vehicles that operate like gasoline-powered vehicles with spark-ignited internal combustion engines.
HEV All the electric vehicles that use batteries and an internal combustion engine (ICE) as their primary source for propulsion are considered under this category. HEVs generally use a diesel-electric powertrain and are also known as hybrid diesel-electric vehicles. An HEV converts the vehicle momentum (kinetic energy) into electricity that recharges the battery when the vehicle slows down or stops. The battery of HEV cannot be charged using plug-in devices.
PHEV PHEVs are powered by a battery as well as an ICE. The battery can be charged through either regenerative breaking using the ICE or by plugging into some external charging source. PHEVs have a better range than BEVs but are comparatively less eco-friendly.
Hatchback These are compact-sized cars with a hatch-type door provided at the rear end.
Sedan These are usually two- or four-door passenger cars, with a separate area provided at the rear end for luggage.
SUV Popularly known as SUVs, these cars come with four-wheel drive, and usually have high ground clearance. These cars can also be used as off-road vehicles.
MPV These are multi-purpose vehicles (also called minivans) designed to carry a larger number of passengers. They carry between five and seven people and have room for luggage too. They are usually taller than the average family saloon car, to provide greater headroom and ease of access, and they are usually front-wheel drive.
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Research Methodology

Mordor Intelligence follows a four-step methodology in all its reports.

  • Step-1: Identify Key Variables: To build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built based on these variables.
  • Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. Market revenue is calculated by multiplying the sales volume with their respective average selling price (ASP). While estimating ASP factors like average inflation, market demand shift, manufacturing cost, technological advancement, and varying consumer preference, among others have been taken into account.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms.
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India Passenger Car Market Research FAQs

How big is the India Passenger Car Market?

The India Passenger Car Market size is expected to reach USD 42.72 billion in 2025 and grow at a CAGR of 5.56% to reach USD 53.04 billion by 2029.

What is the current India Passenger Car Market size?

In 2025, the India Passenger Car Market size is expected to reach USD 42.72 billion.

Who are the key players in India Passenger Car Market?

Hyundai Motor India Limited, Kia Corporation, Mahindra & Mahindra Limited, Maruti Suzuki India Limited and Tata Motors Limited are the major companies operating in the India Passenger Car Market.

Which segment has the biggest share in the India Passenger Car Market?

In the India Passenger Car Market, the Sports Utility Vehicle segment accounts for the largest share by vehicle body type.

Which is the fastest growing segment in the India Passenger Car Market?

In 2025, the Hatchback segment accounts for the fastest growing by vehicle body type in the India Passenger Car Market.

What years does this India Passenger Car Market cover, and what was the market size in 2025?

In 2025, the India Passenger Car Market size was estimated at 42.72 billion. The report covers the India Passenger Car Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the India Passenger Car Market size for years: 2025, 2026, 2027, 2028 and 2029.

India Passenger Car Market Research

Mordor Intelligence offers comprehensive insights into the passenger car industry in India. We leverage decades of expertise in analyzing the automotive market in India. Our research thoroughly examines the passenger vehicles sector, including a detailed analysis of the vehicle population in India and emerging trends in the automobile industry profile. The report provides extensive coverage of the passenger vehicle industry in India. It encompasses everything from car sales statistics to the passenger car sales forecast in India, with particular attention to the automotive manufacturing passenger vehicle market.

Stakeholders gain valuable insights through our detailed examination of passenger vehicle growth in India and the automobile industry CAGR. The report, available as an easy-to-download PDF, includes a comprehensive analysis of car sales in India statistics company wise and passenger vehicle sales in India. We provide in-depth coverage of car sizes in India, the passenger car unit formula, and the city wise vehicle population in India. Our analysis extends to car trend patterns and car price inflation in India, offering stakeholders crucial data for informed decision-making in the Indian passenger car market.