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 scheme, which provides financial incentives to both buyers and manufacturers, have played a pivotal role in boosting EV adoption. Moreover, the reduction in Goods and Services Tax (GST) on EVs has made them more economically viable compared to conventional vehicles. The environmental imperative is another critical factor, with growing concerns over air pollution and greenhouse gas emissions fueling the shift towards cleaner 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
• Sales Channel
  • OEM
  • Aftermarket
• Consumer Segment
  • Individual
  • Fleet
• 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 is witnessing a shift towards advanced technologies such as fuel cell technology and alternative fuels. Connected mobility and vehicle telematics are driving the adoption of digital marketing and online car sales, enhancing brand awareness and customer loyalty. Product innovation and technology adoption are key focus areas for manufacturing capacity expansion and supply chain management. Infrastructure development, including smart cities and sustainable mobility solutions, is essential for reducing carbon footprint and promoting green technology. Joint ventures and partnerships are crucial for R&D in areas like public transportation, urban planning, and automotive aftermarket services, including parts distribution, service centers, repair and maintenance, and automotive customization.

Market Research Overview

The global automotive market encompasses manufacturers producing passenger vehicles, commercial vehicles, and all-terrain vehicles. Excluding motorcycles, scooters, e-bikes, trikes, and three-wheelers from this scope. According to Technavio, the market size is determined by the consolidated revenue generated by these vehicle categories' manufacturers. Factors driving the expansion of the global automotive market include the adoption of innovative vehicle concepts and advanced features, such as increasing electronic components, enhanced safety systems, autonomous capabilities, emission standardization, improved fuel efficiency through electronic fuel control, and customizable vehicles. These elements are significantly drawing consumers towards vehicle ownership.. 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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