India Automotive Market Size & Trends

The India automotive market recorded demand of 5,156,483 units in 2024 and is projected to expand at a CAGR of 7.3% from 2025 to 2030. India continues to strengthen its global manufacturing presence, ranking fourth among the top ten car-producing nations, according to data published in April 2018 by the European Automobile Manufacturers Association.

Growth momentum is supported by the country’s expanding population base, rising disposable incomes, and easier access to vehicle financing. Affordable credit availability has significantly boosted vehicle ownership across both urban and semi-urban regions. Additionally, strong activity in logistics and passenger transportation is expected to drive higher demand for commercial vehicles. Government-led policies and strategic reforms continue to create a favorable ecosystem, sustaining long-term expansion.

In 2019, the Ministry of Finance announced a reduction in corporate tax rates to stimulate manufacturing growth. This policy shift is expected to attract higher foreign direct investment (FDI), offering incremental support to automotive production capabilities. Programs such as Make in India and the Automotive Mission Plan 2026 further reinforce the sector’s development roadmap. The Automotive Mission Plan 2026 outlines a shared vision between industry stakeholders and policymakers to position the automotive sector as a central pillar of India’s industrial advancement.

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Beyond passenger cars, Light Commercial Vehicles (LCVs) are poised for robust expansion over the next seven years. Growth in LCVs is closely linked to the positive trajectory of India’s logistics ecosystem. The rapid rise of e-commerce and adoption of the hub-and-spoke distribution model are expected to significantly increase last-mile delivery demand, thereby boosting LCV sales. Manufacturers are also intensifying focus on untapped rural and semi-urban markets to widen their reach. Enhanced financing accessibility in these regions is projected to unlock further growth opportunities throughout the forecast period.

Key India Automotive Company Insights

The competitive landscape includes established domestic manufacturers and global automotive brands. Key players are implementing strategies such as product innovation, collaborations, and portfolio expansion to strengthen market presence.

Major companies include:

• MARUTI SUZUKI INDIA LIMITED
• Tata Motors
• Mahindra & Mahindra Ltd.
• Hyundai Motor India
• Bajaj Auto Ltd.

In July 2023, MARUTI SUZUKI INDIA LIMITED launched the Invicto, a premium multi-purpose vehicle (MPV). The model marks the company’s entry into the upscale three-row segment, combining SUV-inspired styling with MPV practicality, enhanced safety systems, and advanced features.

MARUTI SUZUKI INDIA LIMITED remains a leader in the passenger vehicle category, recognized for its fuel-efficient models and extensive dealer network. Popular models such as Alto, Swift, Baleno, and Brezza have strong appeal across diverse demographics. The company is also investing in hybrid technologies and planning its first electric vehicle rollout by 2025.

Tata Motors has established a dominant presence in both passenger and commercial vehicle segments. Its electric vehicle lineup, including Nexon EV and Tiago EV, has positioned the company at the forefront of India’s EV adoption wave. In commercial vehicles, Tata Motors maintains leadership with a comprehensive portfolio of trucks, buses, and LCVs that support logistics and public transportation nationwide.

Key India Automotive Companies

• Ashok Leyland
• Bajaj Auto Ltd.
• Mercedes-Benz Group AG
• Eicher Motors Limited
• Honda Motor Co., Ltd.
• Hyundai Motor India
• Mahindra & Mahindra Ltd.
• MARUTI SUZUKI INDIA LIMITED
• Piaggio & C. SpA
• Tata Motors

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Conclusion

The India Automotive Market is positioned for steady and sustainable growth, expanding from 5,156,483 units in 2024 at a projected CAGR of 7.3% through 2030. Rising income levels, expanding logistics infrastructure, policy support, and increased financing penetration are reinforcing demand across passenger and commercial segments.

With strong domestic champions, accelerating electrification initiatives, and government-backed manufacturing strategies, India is set to strengthen its position as a global automotive powerhouse. The convergence of rural expansion, EV innovation, and logistics-driven LCV demand will shape the sector’s next phase of evolution.