Passenger Car Industry in India Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

India Passanger Car Market is Segmented by Body Type (Passenger Cars) and by Engine Type (Hybrid And Electric Vehicles, ICE)

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Indian Passenger Car Market Size

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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2016 - 2028
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2023) USD 41.60 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2028) USD 67.81 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2023 - 2028) 10.27 %
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Concentration High
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Sub Body Type Sports Utility Vehicle

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Indian Passenger Car Market Analysis

The India Passenger Car Market size is expected to grow from USD 41.60 billion in 2023 to USD 67.81 billion by 2028, at a CAGR of 10.27% during the forecast period (2023-2028).

  • Largest Segment by Fuel Type - Gasoline : The Indian passenger car market has gasoline as the largest fuel type, due to the traditional fuel choice has an advantage over other fuel sources due to its easy availability, makes Olectra the 3rd leading player.
  • Fastest-growing Segment by Fuel Type - HEV : The governmental subsidies for BEV along with norms, continued encouragement of BEV adoption among private auto owners which is making BEV the fastest growing segment in passenger car sales in India.
  • Largest Segment by Body Type - Passenger Vehicles : Hatchback vehicles dominated the market primarily due to the launch of new models and the growing emphasis on the increased fuel efficiency and parking space.

Indian Passenger Car Market Trends

This section covers the major market trends shaping the India Passenger Car Market according to our research experts:

Sports Utility Vehicle is the largest segment by Sub Body Type.

  • Passenger car sales have been growing significantly over the past few years. However, the market witnessed its worst fall of 21.07% in 2020 over 2019. Relaxation in the COVID-19 pandemic-induced restraints and the resuming of business operations revived the passenger cars market with a slight growth of 4.77% in 2021 over 2020. While the demand for fossil fuel vehicles is declining gradually, the share of electric passenger cars grew to 4.86% in 2021 from 3.33% in 2020. An increase in the electrification of vehicles and the banning of fossil fuel vehicles by 2035 is expected to boost the Indian passenger cars market in the future.
  • Various international auto manufacturers are developing new models to capture customer attention in the Indian automobile market. In August 2022, Korean automobile producer Hyundai unveiled its new SUV, Tucson. The vehicle is offered in 2.0-liter petrol and diesel engine variants with 156 PS for petrol and 186 for diesel. Such new launches are expected to attract customers, further enhancing the passenger cars market across India during the forecast period.
  • The government's numerous incentives and rebate programs are increasing the demand for battery electric cars nationwide. The governments of several states have updated the policies and amount levels on battery electric car subsidies. Most states often provide road tax discounts of up to 75% and car price reimbursements of up to INR 10,000. These factors are expected to increase demand for electric passenger cars in India during the forecast period.
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Indian Passenger Car Industry Overview

The India Passenger Car Market is fairly consolidated, with the top five companies occupying 82.54%. The major players in this market are Hyundai Motor Company, Mahindra & Mahindra Ltd, Maruti Suzuki, Tata motors and Toyota Kirloskar Motor Pvt. Ltd. (sorted alphabetically).

Indian Passenger Car Market Leaders

  1. Hyundai Motor Company

  2. Mahindra & Mahindra Ltd

  3. Maruti Suzuki

  4. Tata motors

  5. Toyota Kirloskar Motor Pvt. Ltd.

*Disclaimer: Major Players sorted in no particular order

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Indian Passenger Car Market News

  • June 2022: Sony and Honda have announced a joint venture agreement to establish Sony Honda Mobility and to sell electric vehicles by 2025 and provide mobility services.
  • May 2022: Honda Cars India Limited, a leading manufacturer of premium cars in India, launched its much-anticipated New City e: HEV in the country.
  • April 2022: General Motors and Honda announced a new partnership to co-develop a series of affordable electric vehicles. The new EVs will be based on a new global architecture using next-generation Ultium battery technology.

Indian Passenger Car Market Report - Table of Contents

  1. EXECUTIVE SUMMARY & KEY FINDINGS

  2. REPORT OFFERS

  3. 1. INTRODUCTION

    1. 1.1. Study Assumptions & Market Definition

    2. 1.2. Scope of the Study

    3. 1.3. Research Methodology

  4. 2. KEY INDUSTRY TRENDS

    1. 2.1. Population

    2. 2.2. GDP

    3. 2.3. CVP

    4. 2.4. Inflation Rate

    5. 2.5. Interest Rate For Auto Loans

    6. 2.6. Battery Price (per Kwh)

    7. 2.7. Electrification Impact

    8. 2.8. Shared Mobility

    9. 2.9. New XEV Models Announced

    10. 2.10. Charging Stations Deployment

    11. 2.11. Regulatory Framework

    12. 2.12. Value Chain & Distribution Channel Analysis

  5. 3. MARKET SEGMENTATION

    1. 3.1. Body Type

      1. 3.1.1. Passenger Cars

        1. 3.1.1.1. Hatchback

        2. 3.1.1.2. Multi-purpose Vehicle

        3. 3.1.1.3. Sedan

        4. 3.1.1.4. Sports Utility Vehicle

    2. 3.2. Engine Type

      1. 3.2.1. Hybrid And Electric Vehicles

        1. 3.2.1.1. By Fuel Type

          1. 3.2.1.1.1. BEV

          2. 3.2.1.1.2. FCEV

          3. 3.2.1.1.3. HEV

          4. 3.2.1.1.4. PHEV

      2. 3.2.2. ICE

        1. 3.2.2.1. By Fuel Type

          1. 3.2.2.1.1. CNG

          2. 3.2.2.1.2. Diesel

          3. 3.2.2.1.3. Gasoline

          4. 3.2.2.1.4. LPG

  6. 4. COMPETITIVE LANDSCAPE

    1. 4.1. Key Strategic Moves

    2. 4.2. Market Share Analysis

    3. 4.3. Company Landscape

    4. 4.4. Company Profiles

      1. 4.4.1. Honda Motor Co. Ltd.

      2. 4.4.2. Hyundai Motor Company

      3. 4.4.3. Jaguar Land Rover Limited

      4. 4.4.4. Mahindra & Mahindra Ltd

      5. 4.4.5. Maruti Suzuki

      6. 4.4.6. Mercedes-Benz AG

      7. 4.4.7. MG Motor India Pvt. Ltd.

      8. 4.4.8. Tata motors

      9. 4.4.9. Toyota Kirloskar Motor Pvt. Ltd.

      10. 4.4.10. Volvo Car Corporation

  7. 5. KEY STRATEGIC QUESTIONS FOR VEHICLES CEOS

  8. 6. APPENDIX

    1. 6.1. Global Overview

      1. 6.1.1. Overview

      2. 6.1.2. Porter's Five Forces Framework

      3. 6.1.3. Global Value Chain Analysis

      4. 6.1.4. Market Dynamics (DROs)

    2. 6.2. Sources & References

    3. 6.3. List of Tables & Figures

    4. 6.4. Primary Insights

    5. 6.5. Data Pack

    6. 6.6. Glossary of Terms

List of Tables & Figures

  1. Figure 1:  
  2. INDIA PASSENGER CAR MARKET, POPULATION YOY GROWTH RATE, MILLION UNITS, 2016 – 2026
  1. Figure 2:  
  2. INDIA PASSENGER CAR MARKET, GDP YOY GROWTH RATE, USD MILLION, 2016 – 2026
  1. Figure 3:  
  2. INDIA PASSENGER CAR MARKET, CVP YOY GROWTH RATE, 2016 – 2027
  1. Figure 4:  
  2. INDIA PASSENGER CAR MARKET, INFLATION RATE YOY GROWTH RATE, PERCENT, 2016 – 2026
  1. Figure 5:  
  2. INDIA PASSENGER CAR MARKET, INTEREST RATE FOR AUTO LOANS YOY GROWTH RATE, PERCENT, 2016 – 2026
  1. Figure 6:  
  2. INDIA PASSENGER CAR MARKET, BATTERY PRICES YOY GROWTH RATE, 2016 – 2026
  1. Figure 7:  
  2. INDIA PASSENGER CAR MARKET, ELECTRIFICATION IMPACT, VOLUME, YOY GROWTH RATE, PERCENT, 2016 – 2026
  1. Figure 8:  
  2. INDIA PASSENGER CAR MARKET, DISTRIBUTION OF GROSS DOMESTIC PRODUCT BY ECONOMIC ACTIVITY, SHARE %, 2021
  1. Figure 9:  
  2. INDIA PASSENGER CAR MARKET, NEW XEV MODELS ANNOUNCED, VOLUME, YOY GROWTH RATE, UNITS, 2016 – 2026
  1. Figure 10:  
  2. INDIA PASSENGER CAR MARKET, CHARGING STATIONS DEPLOYMENT, VOLUME, YOY GROWTH RATE, UNITS, 2016 – 2026
  1. Figure 11:  
  2. INDIA PASSENGER CAR MARKET, VOLUME IN UNITS, 2016 – 2026
  1. Figure 12:  
  2. INDIA PASSENGER CAR MARKET, VALUE IN USD, 2016 – 2026
  1. Figure 13:  
  2. INDIA PASSENGER CAR MARKET, BY SUB BODY TYPE, BY VOLUME IN UNITS, 2016-2028
  1. Figure 14:  
  2. INDIA PASSENGER CAR MARKET, BY SUB BODY TYPE, BY VALUE IN USD, 2016-2028
  1. Figure 15:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY SUB BODY TYPE, 2016 - 2028
  1. Figure 16:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY SUB BODY TYPE, 2016 - 2028
  1. Figure 17:  
  2. INDIA PASSENGER CAR MARKET, BY HATCHBACK, BY VOLUME IN UNITS, 2016-2028
  1. Figure 18:  
  2. INDIA PASSENGER CAR MARKET, BY HATCHBACK, BY VALUE IN USD, 2016-2028
  1. Figure 19:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY ENGINE TYPE, 2021 - 2028
  1. Figure 20:  
  2. INDIA PASSENGER CAR MARKET, BY MULTI-PURPOSE VEHICLE, BY VOLUME IN UNITS, 2016-2028
  1. Figure 21:  
  2. INDIA PASSENGER CAR MARKET, BY MULTI-PURPOSE VEHICLE, BY VALUE IN USD, 2016-2028
  1. Figure 22:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY ENGINE TYPE, 2021 - 2028
  1. Figure 23:  
  2. INDIA PASSENGER CAR MARKET, BY SEDAN, BY VOLUME IN UNITS, 2016-2028
  1. Figure 24:  
  2. INDIA PASSENGER CAR MARKET, BY SEDAN, BY VALUE IN USD, 2016-2028
  1. Figure 25:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY ENGINE TYPE, 2021 - 2028
  1. Figure 26:  
  2. INDIA PASSENGER CAR MARKET, BY SPORTS UTILITY VEHICLE, BY VOLUME IN UNITS, 2016-2028
  1. Figure 27:  
  2. INDIA PASSENGER CAR MARKET, BY SPORTS UTILITY VEHICLE, BY VALUE IN USD, 2016-2028
  1. Figure 28:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY ENGINE TYPE, 2021 - 2028
  1. Figure 29:  
  2. INDIA PASSENGER CAR MARKET, BY ENGINE TYPE, BY VOLUME IN UNITS, 2016-2028
  1. Figure 30:  
  2. INDIA PASSENGER CAR MARKET, BY ENGINE TYPE, BY VALUE IN USD, 2016-2028
  1. Figure 31:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY ENGINE TYPE, 2016 - 2028
  1. Figure 32:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY ENGINE TYPE, 2016 - 2028
  1. Figure 33:  
  2. INDIA PASSENGER CAR MARKET, BY FUEL TYPE, BY VOLUME IN UNITS, 2016-2028
  1. Figure 34:  
  2. INDIA PASSENGER CAR MARKET, BY FUEL TYPE, BY VALUE IN USD, 2016-2028
  1. Figure 35:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL TYPE, 2016 - 2028
  1. Figure 36:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL TYPE, 2016 - 2028
  1. Figure 37:  
  2. INDIA PASSENGER CAR MARKET, BY BEV, BY VOLUME IN UNITS, 2016-2028
  1. Figure 38:  
  2. INDIA PASSENGER CAR MARKET, BY BEV, BY VALUE IN USD, 2016-2028
  1. Figure 39:  
  2. INDIA PASSENGER CAR MARKET, BY FCEV, BY VOLUME IN UNITS, 2016-2028
  1. Figure 40:  
  2. INDIA PASSENGER CAR MARKET, BY FCEV, BY VALUE IN USD, 2016-2028
  1. Figure 41:  
  2. INDIA PASSENGER CAR MARKET, BY HEV, BY VOLUME IN UNITS, 2016-2028
  1. Figure 42:  
  2. INDIA PASSENGER CAR MARKET, BY HEV, BY VALUE IN USD, 2016-2028
  1. Figure 43:  
  2. INDIA PASSENGER CAR MARKET, BY PHEV, BY VOLUME IN UNITS, 2016-2028
  1. Figure 44:  
  2. INDIA PASSENGER CAR MARKET, BY PHEV, BY VALUE IN USD, 2016-2028
  1. Figure 45:  
  2. INDIA PASSENGER CAR MARKET, BY FUEL TYPE, BY VOLUME IN UNITS, 2016-2028
  1. Figure 46:  
  2. INDIA PASSENGER CAR MARKET, BY FUEL TYPE, BY VALUE IN USD, 2016-2028
  1. Figure 47:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL TYPE, 2016 - 2028
  1. Figure 48:  
  2. INDIA PASSENGER CAR MARKET MARKET, SHARE(%), BY FUEL TYPE, 2016 - 2028
  1. Figure 49:  
  2. INDIA PASSENGER CAR MARKET, BY CNG, BY VOLUME IN UNITS, 2016-2028
  1. Figure 50:  
  2. INDIA PASSENGER CAR MARKET, BY CNG, BY VALUE IN USD, 2016-2028
  1. Figure 51:  
  2. INDIA PASSENGER CAR MARKET, BY DIESEL, BY VOLUME IN UNITS, 2016-2028
  1. Figure 52:  
  2. INDIA PASSENGER CAR MARKET, BY DIESEL, BY VALUE IN USD, 2016-2028
  1. Figure 53:  
  2. INDIA PASSENGER CAR MARKET, BY GASOLINE, BY VOLUME IN UNITS, 2016-2028
  1. Figure 54:  
  2. INDIA PASSENGER CAR MARKET, BY GASOLINE, BY VALUE IN USD, 2016-2028
  1. Figure 55:  
  2. INDIA PASSENGER CAR MARKET, BY LPG, BY VOLUME IN UNITS, 2016-2028
  1. Figure 56:  
  2. INDIA PASSENGER CAR MARKET, BY LPG, BY VALUE IN USD, 2016-2028
  1. Figure 57:  
  2. INDIA PASSENGER CAR MARKET, MOST ACTIVE COMPANIES, BY NUMBER OF STRATEGIC MOVES, 2018 - 2021
  1. Figure 58:  
  2. INDIA PASSENGER CAR MARKET, MOST ADOPTED STRATEGIES, 2018 - 2021
  1. Figure 59:  
  2. INDIA PASSENGER CAR MARKET SHARE(%), BY MAJOR PLAYERS, 2021

Indian Passenger Car Industry Segmentation

Passenger Cars are covered as segments by Body Type. Hybrid And Electric Vehicles, ICE are covered as segments by Engine Type.
Body Type
Passenger Cars
Hatchback
Multi-purpose Vehicle
Sedan
Sports Utility Vehicle
Engine Type
Hybrid And Electric Vehicles
By Fuel Type
BEV
FCEV
HEV
PHEV
ICE
By Fuel Type
CNG
Diesel
Gasoline
LPG

Report scope can be customized per your requirements. Click here.

Market Definition

  • Body Type - 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.
  • Engine Type - This includes Hybrid and electric vehicles and Internal combustion engines (ICE).
  • Fuel Type - Hybrid and electric vehicles include HEV, PHEV, BEV, and FCEV while ICE includes Gasoline, Diesel, CNG, LPG.
  • Sub Body Type - The sub-body type includes Hatchback, Sedan, SUV, and MPV.
  • Vehicle Type - Passenger vehicles which includes electric powered cars and vehicles, sports utility vehicles, multipurpose vehicles

For any queries related to market definition, click here to schedule a call with our analysts.

Research Methodology

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

  • Step-1: Identify Key Variables: In order 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 on the basis of 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. For sales conversion to volume, the average selling price (ASP) is kept constant throughout the forecast period for each country, and inflation is not a part of the pricing.
  • 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

For any queries related to research methodology, click here to schedule a call with our analysts.

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Indian Passenger Car Market Research FAQs

The India Passenger Car Market size accounted for USD 35.87 billion in 2022 and grow at a CAGR of 10.27% to reach USD 60.78 billion by 2028.

In 2022, the India Passenger Car Market size accounted for USD 35.87 billion.

Hyundai Motor Company, Mahindra & Mahindra Ltd, Maruti Suzuki, Tata motors and Toyota Kirloskar Motor Pvt. Ltd. are the major companies operating in the India Passenger Car Market.

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

In 2023, the Multi-purpose Vehicle segment accounts for the fastest growing by sub body type in the India Passenger Car Market.

India Passenger Car Industry Report

Statistics for the 2023 India Passenger Car market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Passenger Car analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

India Passenger Car Market Report Snapshots