Latest News- Automotive Market in India: Two-wheelers is expected to lead the Type segment during 2025-2029

The Automotive Market in India is being driven by Growing middle-class population

The Automotive Market in India is expected to grow at a CAGR of 7.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 60.6 billion. The Indian automotive sector is experiencing a significant increase in demand for electric vehicles (EVs), driven by a confluence of factors. Government initiatives, such as the FAME II scheme, which provides financial incentives to both buyers and manufacturers, have been instrumental in fostering consumer interest in EVs. Additionally, the reduction in Goods and Services Tax (GST) on EVs has made them more financially viable compared to conventional vehicles. Environmental concerns, including the mitigation of air pollution and reduction of greenhouse gas emissions, further fuel the demand for these sustainable transportation solutions. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Type
  • Two-wheelers
  • Passenger cars
  • Commercial vehicles
  • Three-wheelers
• Fuel Type
  • Diesel
  • Petrol
  • CNG and LPG
  • Electric
• Distribution Channel
  • Offline
  • Online
• Geography
  • India

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing middle-class population
• Government initiatives and policies for easy automotive industry setup procedure
• Advances in the field of automotive technology

However, the market also witnesses some limitations, which are as follows:

• Increasing competition among vendors
• Infrastructure limitations
• Economic volatility

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Market Scope in Automotive Market in India Research Report

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Research Analysis Overview

The Indian automotive market encompasses the sale of passenger cars and other motor vehicles in the transport industry. This sector is witnessing significant advancements with the integration of connected automotive technology, including real-time navigation, remote diagnostics, and autonomous driving technology. The middle class population in urban areas is driving the demand for green mobility solutions, such as hybrid vehicles and eco-friendly designs. Fuel efficiency, battery management, and emission control are key focus areas, along with powertrain innovation and charging infrastructure. Safety, infotainment systems, and vehicle production are other essential aspects of this industry, which is also embracing smart mobility and lightweight materials. Autonomous driving, connected cars, telematics systems, and automotive electronics are shaping the future of this sector.

Market Research Overview

The automobile industry in India encompasses the manufacturing sector focused on the production of passenger cars, commercial vehicles, and all-terrain vehicles. Notably, this market excludes the manufacturing of motorcycles, scooters, e-bikes, trikes, and three-wheelers. According to Technavio, the global automobile manufacturers market size is determined by the consolidated revenue generated by the aforementioned vehicle categories' manufacturers. Key growth drivers for this market include the adoption of advanced features such as electronic components, enhanced safety systems, autonomous capabilities, emission standardization, improved fuel efficiency through electronic fuel control, and customizable vehicle options, which are increasingly appealing to middle-class consumers and corporate entities in the context of passenger transportation.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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