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 market is experiencing a significant increase in demand for electric vehicles (EVs), driven by a confluence of factors. Government initiatives, such as the FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) scheme, which offers financial incentives to both buyers and manufacturers, have played a pivotal role in boosting consumer investment in EVs. Additionally, the reduction in Goods and Services Tax (GST) on EVs has made them more economically viable compared to conventional vehicles. Environmental concerns, including the mitigation of air pollution and greenhouse gas emissions, are also fueling the demand for electric vehicles in India. 

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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 motor vehicles in the transport industry. Connected automotive technology, including real-time navigation and remote diagnostics, is a growing trend. Autonomous driving technology, hybrid vehicles, and green mobility solutions cater to urban areas and the middle class population. Fuel efficiency, battery management, and emission control are key focus areas. Powertrain innovation, vehicle safety, infotainment systems, and automotive electronics are essential components. Lightweight materials, smart mobility, charging infrastructure, and eco-friendly designs are shaping the future of the automobile industry. Urban mobility solutions and autonomous driving are the new frontiers, with telematics systems and driver assistance systems playing crucial roles.

Market Research Overview

The automobile industry in India primarily encompasses the manufacturing sector for passenger cars, catering to the burgeoning middle-class consumer base. Corporate interests continue to drive this market, with parent global automobile manufacturers leading the charge. The market size is determined by the consolidated revenue generated from the production of passenger cars, commercial vehicles, and all-terrain vehicles. Key growth drivers include the integration of advanced features, such as electronic components, secured safety systems, autonomous capabilities, emission standardization, and electronic fuel control, which enhance vehicle value proposition and fuel consumer demand.. 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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