India Automotive Industry Market Share

ID: MRFR/AT/11023-HCR

128 Pages

Indu Tyagi Ketan

October 2025

India Automotive Industry Market Research Report Information By Vehicle Type (Two-Wheelers, Passenger Cars, Commercial Vehicles and Three-wheelers), By Fuel Type (Diesel, Petrol/Gasoline, CNG and LPG, Electric and Others) –Market Forecast Till 2035

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Market Share

Introduction: Navigating the Competitive Landscape of India's Automotive Future

The Indian automobile industry is undergoing a radical transformation. The rapid uptake of new technology, the changing regulatory framework, the growing importance of safety and security and the growing demand for convenience and connectivity are driving the industry into a new phase. The manufacturers are investing heavily in electric and driverless vehicles, while IT companies are enhancing the vehicle’s software capabilities to improve its convenience and efficiency. The electric vehicle charging stations are also being developed to give a competitive edge to the charging network. Artificial intelligence and big data companies are deploying their advanced analytics and machine learning capabilities to optimize the supply chain and to enable predictive maintenance. And as the market evolves, the IoT and biometrics are redefining the way consumers interact with the vehicles. The green initiatives are reshaping the way the automobiles are positioned in the market. The industry is also expected to focus on regional growth opportunities, especially in tier II and tier III cities, where the demand for mobility solutions is growing rapidly.

Competitive Positioning

Full-Suite Integrators

These vendors offer a comprehensive range of automotive solutions, from manufacturing to after-sales services.

Vendor	Competitive Edge	Solution Focus	Regional Focus
Tata Motors Limited (includes Tata and Jaguar)	Diverse portfolio and strong brand presence	Passenger and commercial vehicles	India and global markets
Hyundai Motor India Ltd	Innovative technology and design	Passenger vehicles	India and Asia-Pacific
Mahindra & Mahindra Limited	Strong in utility and electric vehicles	SUVs and commercial vehicles	India and emerging markets
MG Motor India Pvt. Ltd	Focus on electric and connected vehicles	Passenger vehicles	India
BMW AG (includes BMW and MINI)	Luxury and performance-oriented offerings	Luxury vehicles	India and global markets
Mercedes-Benz India Pvt Ltd	Premium brand with advanced technology	Luxury vehicles	India

Motorcycle Manufacturers

These vendors specialize in two-wheeler manufacturing, focusing on performance and innovation.

Vendor	Competitive Edge	Solution Focus	Regional Focus
TVS Motor Company	Strong R&D and product innovation	Motorcycles and scooters	India and international markets
Hero Moto Corp	Market leader with extensive distribution	Motorcycles and scooters	India and global markets
Honda Motorcycle & Scooter India Pvt. Ltd.	Global brand with reliable products	Motorcycles and scooters	India and Asia-Pacific
Royal Enfield	Iconic brand with a loyal customer base	Classic motorcycles	India and international markets
Bajaj Auto Corp	Strong presence in performance bikes	Motorcycles and three-wheelers	India and emerging markets
Suzuki Motorcycle India Private Limited	Diverse product range and affordability	Motorcycles and scooters	India
Piaggio & C. SpA	Innovative design and technology	Scooters and three-wheelers	India and global markets
Lohia Auto Industries	Focus on eco-friendly vehicles	Electric and three-wheelers	India
Atul Auto Limited	Strong in three-wheeler segment	Three-wheelers	India
Terra Motors India Corp.	Focus on electric mobility solutions	Electric two-wheelers	India
Scooters India Ltd.	Established brand in scooter market	Scooters	India

Emerging Players & Regional Champions

Ola Electric (India): This company, which specializes in electric scooters and charging stations, has just won a contract to supply the government with electric vehicles, and is a direct competitor to the two-wheeled vehicle industry. It has an advantage in technology.
Ather Energy (India): Focuses on smart electric scooters with advanced connectivity features, recently expanded its charging network across major cities, complementing established players by pushing for a shift towards sustainable urban mobility.
Tata Motors (India): While an established player, its focus on electric vehicles and sustainable practices positions it as a regional champion, recently launched a new line of electric cars that competes directly with global brands.
Revolt Motors (India): Offers AI-enabled electric motorcycles, recently partnered with local delivery services to provide electric bikes, challenging conventional motorcycle manufacturers by targeting the urban delivery market.
Mahindra Electric (India): Focuses on electric mobility solutions and has recently launched a new range of electric commercial vehicles, complementing traditional automotive offerings by providing eco-friendly alternatives.

Regional Trends: The Indian automobile industry is undergoing a significant transition towards electric mobility, spurred by government incentives and a growing demand for sustainable mobility solutions. There are several startups that are focusing on electric vehicles, smart technology and connectivity. Regional players are bringing down the cost of production and improving the supply chain, while the established players are stepping up their investment in electric and hybrid vehicles.

Collaborations & M&A Movements

Tata Motors and Tesla entered into a partnership to co-develop electric vehicle technology, aiming to enhance Tata's EV offerings and increase market share in the growing electric vehicle segment in India.
Mahindra & Mahindra acquired a 51% stake in a local electric scooter startup to expand its footprint in the electric two-wheeler market, positioning itself as a key player in the sustainable mobility sector.
Bajaj Auto and KTM announced a collaboration to develop a new line of electric motorcycles, leveraging KTM's expertise in performance bikes to capture the youth market in India.

Competitive Summary Table

Capability	Leading Players	Remarks
Biometric Self-Boarding	Tata Motors, Mahindra & Mahindra	Tata Motors has implemented biometric systems in select models to enhance security and user experience, while Mahindra & Mahindra is exploring partnerships with tech firms to integrate biometric features in their upcoming electric vehicles.
AI-Powered Ops Mgmt	Ashok Leyland, Hero MotoCorp	Ashok Leyland utilizes AI for predictive maintenance and supply chain optimization, leading to reduced downtime. Hero MotoCorp has adopted AI-driven analytics for better inventory management and customer insights.
Border Control	Maruti Suzuki, Hyundai India	Maruti Suzuki has developed advanced border control systems for their manufacturing plants to streamline logistics. Hyundai India is enhancing border control measures through smart technology to ensure compliance and efficiency.
Sustainability	Tata Motors, Mahindra & Mahindra	Tata Motors is focusing on sustainable manufacturing processes and electric vehicle production, while Mahindra & Mahindra has committed to a significant reduction in carbon emissions across its supply chain by 2025.
Passenger Experience	Kia India, Honda Cars India	Kia India is known for its user-friendly infotainment systems and comfortable interiors, enhancing passenger experience. Honda Cars India is integrating advanced safety features and connectivity options to improve overall customer satisfaction.

Conclusion: Navigating India's Automotive Landscape in 2025

The Indian automobile industry will be characterized by a fragmented and regionally differentiated market as we approach 2025. The more established players will continue to leverage their brand equity and integrate advanced technology, while the newer ones will focus on innovation and agility. The strategic implications for suppliers are clear: those that are able to leverage the capabilities of AI, automation, and sustainable mobility will emerge as the leaders. Regionally, the market for electric vehicles and smart mobility solutions will grow, forcing the industry to evolve rapidly. In this context, the ability to respond quickly and invest in new capabilities will be critical for sustaining a competitive advantage.

Market Highlights

Author

Indu Tyagi Ketan

Chief Strategy Officer

Indu Tyagi Ketan CSO and one of our esteemed authors at Market Research Future, is a biomedical engineer with a specialization in neurophysiology. Her forte is in forecasting advancements & investments in new technologies. She has played a vital role in designing strategies & roadmaps for many organizations. Indu is a strategy & marketing leader with a demonstrated history of working in industry & market research/consulting.

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FAQs

What is the current valuation of the India automotive industry market?

The India automotive industry market was valued at approximately 611.35 USD Billion in 2024.

What is the projected market valuation for the India automotive industry by 2035?

The market is projected to reach around 1193.65 USD Billion by 2035.

What is the expected CAGR for the India automotive industry from 2025 to 2035?

The expected CAGR for the India automotive industry market during the forecast period 2025 - 2035 is 6.27%.

Which companies are considered key players in the India automotive market?

Key players in the market include Tata Motors, Mahindra & Mahindra, Maruti Suzuki, and Toyota Kirloskar Motor.

What are the major vehicle types contributing to the market?

The major vehicle types include Passenger Cars, Commercial Vehicles, Two-Wheelers, and Three-Wheelers, with valuations ranging from 61.35 to 500.0 USD Billion.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per analysis, the India automotive industry. is projected to grow from USD 611.35 Billion in 2024 to USD 1193.65 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.27% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The Indian automotive industry is experiencing a transformative shift towards electric mobility and smart technologies.

The passenger car segment remains the largest in the Indian automotive market, driven by increasing consumer demand for personal mobility.
The two-wheeler segment is currently the fastest-growing, reflecting a shift towards affordable and efficient transportation solutions.
Electric vehicles are emerging as the fastest-growing segment, propelled by advancements in technology and infrastructure.
Government initiatives and policies, along with a rising focus on sustainability, are key drivers shaping the future of the automotive industry.

India Automotive Industry Market

CAGR

6.27%

Market Size & Forecast

2024 Market Size	611.35 (USD Billion)
2035 Market Size	1193.65 (USD Billion)
CAGR (2025 - 2035)	6.27%

Major Players

Tata Motors (IN), Mahindra & Mahindra (IN), Maruti Suzuki (IN), Hindustan Motors (IN), Toyota Kirloskar Motor (IN), Honda Cars India (IN), Hyundai Motor India (KR), Ford India (US), Nissan Motor India (JP)

Market Trends

The India automotive industry. is currently experiencing a transformative phase characterized by rapid advancements in technology and shifting consumer preferences. The push towards electric vehicles is becoming increasingly pronounced, as both manufacturers and consumers recognize the importance of sustainability. Government initiatives aimed at promoting electric mobility, such as incentives for electric vehicle purchases and investments in charging infrastructure, are likely to play a crucial role in shaping the future landscape of this sector. Furthermore, the integration of smart technologies into vehicles is enhancing the driving experience, making cars more connected and efficient. This trend appears to resonate well with the younger demographic, who are more inclined towards tech-savvy solutions. In addition to technological advancements, the india automotive industry market is witnessing a notable shift towards localization of production. This strategy not only aims to reduce dependency on imports but also seeks to bolster domestic manufacturing capabilities. The government’s focus on the Make in India initiative is likely to encourage automotive companies to invest in local production facilities. As a result, this could lead to job creation and economic growth within the sector. Moreover, the increasing emphasis on safety standards and regulations is expected to drive manufacturers to innovate and enhance vehicle safety features, thereby improving consumer confidence in the market.

Rise of Electric Vehicles

The transition towards electric vehicles is gaining momentum in the india automotive industry market. This shift is driven by government policies promoting sustainable transportation and consumer demand for eco-friendly options. Manufacturers are increasingly investing in electric vehicle technology, which may lead to a broader range of electric models available to consumers.

Localization of Production

The trend towards localization is becoming more pronounced within the india automotive industry market. Companies are focusing on establishing manufacturing units within the country to reduce reliance on imports. This strategy aligns with government initiatives aimed at boosting domestic production and creating job opportunities.

Integration of Smart Technologies

The incorporation of smart technologies into vehicles is reshaping the india automotive industry market. Features such as advanced connectivity, autonomous driving capabilities, and enhanced safety systems are becoming more prevalent. This trend is likely to attract tech-savvy consumers and improve overall vehicle performance.

India Automotive Industry Market Market Drivers

Government Initiatives and Policies

The India automotive industry is significantly influenced by various government initiatives aimed at promoting growth and sustainability. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, for instance, encourages the adoption of electric vehicles (EVs) through subsidies and incentives. Additionally, the Production-Linked Incentive (PLI) scheme aims to boost domestic manufacturing, potentially increasing the market share of local manufacturers. As of 2025, the Indian government has set ambitious targets for EV adoption, aiming for 30% of total vehicle sales to be electric by 2030. Such policies not only enhance the competitiveness of the India automotive industry market but also align with global sustainability goals, fostering innovation and investment in cleaner technologies.

Expansion of Electric Vehicle Infrastructure

The expansion of electric vehicle (EV) infrastructure is a crucial driver for the India automotive industry market. The government and private sector are investing significantly in charging stations and battery swapping facilities to support the growing EV market. As of early 2026, India has seen a substantial increase in the number of public charging stations, with projections indicating a potential doubling of infrastructure by 2027. This development not only alleviates range anxiety among consumers but also encourages manufacturers to invest in EV production. The enhanced infrastructure is expected to catalyze the growth of the EV segment within the India automotive industry market, aligning with global trends towards sustainable transportation.

Growing Consumer Demand for Personal Mobility

The India automotive industry is experiencing a notable shift in consumer preferences, with an increasing demand for personal mobility solutions. This trend is driven by urbanization, rising disposable incomes, and changing lifestyles. According to recent data, the passenger vehicle segment is projected to grow at a CAGR of approximately 10% from 2025 to 2030. Consumers are increasingly seeking vehicles that offer comfort, safety, and advanced features, which is prompting manufacturers to innovate and diversify their offerings. This growing demand for personal vehicles is likely to reshape the competitive landscape of the India automotive industry market, as companies strive to meet evolving consumer expectations.

Technological Advancements in Automotive Manufacturing

Technological advancements are playing a pivotal role in transforming the India automotive industry market. The adoption of Industry 4.0 technologies, such as automation, artificial intelligence, and data analytics, is enhancing manufacturing efficiency and product quality. For instance, the integration of robotics in assembly lines is reducing production costs and lead times. Furthermore, the use of advanced materials and manufacturing techniques is enabling the production of lighter and more fuel-efficient vehicles. As manufacturers increasingly embrace these technologies, the India automotive industry market is likely to witness improved competitiveness and innovation, positioning itself favorably in the global automotive landscape.

Rising Focus on Sustainability and Environmental Regulations

The India automotive industry is increasingly shaped by a rising focus on sustainability and stringent environmental regulations. The government has implemented various policies aimed at reducing vehicular emissions and promoting cleaner technologies. For example, the Bharat Stage VI (BS-VI) emission standards, which came into effect in 2020, have compelled manufacturers to invest in advanced emission control technologies. This regulatory environment is likely to drive innovation in the industry, as companies seek to develop eco-friendly vehicles. The growing consumer awareness regarding environmental issues further supports this trend, suggesting that sustainability will remain a key driver in the evolution of the India automotive industry market.

Market Segment Insights

By Vehicle Type: Passenger Car (Largest) vs. Two-Wheeler (Fastest-Growing)

In the Indian automotive industry, the vehicle type segmentation reveals a diverse market landscape. Passenger cars hold the largest market share, driven by consumer preference for convenience and comfort. However, two-wheelers are gaining traction, presenting dynamic growth opportunities, particularly in urban areas where traffic congestion influences vehicle choice. Commercial vehicles and three-wheelers follow in significance, catering to the needs of businesses and logistics, but are not growing as rapidly as the other segments.

Passenger Car (Dominant) vs. Two-Wheeler (Emerging)

Passenger cars represent a dominant force in the Indian automotive market, showcasing a preference for personal mobility among consumers. Their allure lies in technology advancements, safety features, and varied model offerings, appealing to a wide demographic. In contrast, two-wheelers are emerging as a vital segment, appealing particularly to younger consumers and urbanites seeking affordable and efficient transport. Factors like rising fuel costs and increasing urbanization are propelling two-wheeler popularity, positioning it for robust growth in the upcoming years.

By Fuel Type: Internal Combustion Engine (Largest) vs. Electric (Fastest-Growing)

The fuel type segment of the India automotive industry is predominantly led by Internal Combustion Engines (ICE), which account for the largest market share due to their long-standing presence and established infrastructure. However, the shift toward sustainable automotive solutions has gained momentum, resulting in an increase in the share of Electric vehicles, which represent the fastest-growing segment among the fuel types. This evolution underscores a significant transformation within the market as consumer preferences lean toward eco-friendly alternatives. In recent years, the push for reducing carbon emissions, fueled by government incentives and advancements in battery technology, has propelled the growth of Electric vehicles. Additionally, awareness regarding climate change and energy efficiency is fostering interest in Hybrid and Compressed Natural Gas (CNG) vehicles. While CNG vehicles are carving a niche with their cost-effective proposition, the overall growth trajectory highlights a transition towards electric mobility, thereby shaping the future of the automotive landscape in India.

Internal Combustion Engine (Dominant) vs. Electric (Emerging)

Internal Combustion Engines (ICE) have long been the cornerstone of the Indian automotive market, characterized by a vast ecosystem of suppliers and support networks that facilitate their production and maintenance. Their dominant presence is attributed to affordability, familiarity among consumers, and widespread infrastructure, making them the conventional choice for many drivers. Conversely, Electric vehicles represent an emergent force within the market, driven by innovation and backed by favorable government policies promoting sustainability. This segment is distinguished by its growing appeal to environmentally conscious consumers and technological advancements, such as improved battery ranges and charging infrastructure. As automakers pivot to embrace electric technology, this shift may disrupt the traditional dominance of ICE, heralding a balanced evolution in fuel choices.

By Market Channel: OEM (Largest) vs. Aftermarket (Fastest-Growing)

In the India automotive industry market, the market channel segment showcases a diverse distribution among OEM, Aftermarket, Online Sales, and Dealerships. OEM holds the largest share, primarily driven by robust manufacturing capabilities and strong partnerships with global automotive players. The Aftermarket segment, while comparatively smaller, is gaining momentum, indicating shifts in consumer behavior toward maintenance and customization of vehicles. As vehicle ownership increases, the Aftermarket's significance reflects a changing landscape in automotive consumer preferences.

OEM (Dominant) vs. Aftermarket (Emerging)

The OEM segment stands as the dominant player in the India automotive market, characterized by established brands and a deep-rooted supply chain. Major manufacturers are focusing on innovation and sustainability, producing vehicles that meet regulatory standards as well as consumer demand for fuel efficiency. Conversely, the Aftermarket segment is emerging rapidly, fueled by a growing trend toward vehicle customization and servicing. Consumers are increasingly seeking specialized parts and services, indicating a shift toward personalized automotive experiences. This trend is bolstered by the advent of digital platforms that facilitate online purchases of aftermarket products, enhancing accessibility and variety for customers.

By Vehicle Size: Compact (Largest) vs. Luxury (Fastest-Growing)

In the Indian automotive industry, the vehicle size segment showcases significant diversity, with compact cars dominating the market share due to their affordability and practicality in urban areas. Midsize and full-size vehicles also hold notable shares, appealing to families and those requiring more space. Luxury vehicles, while a smaller segment, are increasingly gaining traction as disposable incomes rise and consumer preferences shift towards high-end features and performance. The growth trends within the vehicle size segment indicate a robust demand for compact cars, driven by urbanization and the need for fuel efficiency. Simultaneously, luxury vehicles represent the fastest-growing segment, fueled by changing consumer aspirations and a desire for premium experiences. The midsize and full-size segments continue to remain stable, catering to the family-oriented consumers who prioritize space and comfort in their vehicles.

Compact (Dominant) vs. Luxury (Emerging)

Compact vehicles are the cornerstone of the Indian automotive market, characterized by their economical pricing and efficiency, making them the preferred choice for urban dwellers navigating congested roads. These vehicles typically feature innovative designs that maximize interior space while minimizing external dimensions, appealing to a broad demographic seeking practicality. On the other hand, luxury vehicles in India are emerging as a significant trend, driven by affluent consumers seeking superior technology, style, and performance. This segment is marked by rising investments in luxury brands and greater availability of high-end features, catering to the aspirational middle class that desires not just a mode of transport, but a status symbol that reflects their lifestyle.

By Technology: Connected Vehicles (Largest) vs. Electric Powertrains (Fastest-Growing)

In the Indian automotive industry, the technology segment showcases a diverse distribution among various values. Connected vehicles currently hold the largest market share, driven by increasing consumer demand for enhanced connectivity and smart features. Following closely, electric powertrains are rapidly gaining traction as the country pushes towards sustainable mobility solutions and reduced emissions, reflecting a shifting preference among consumers and manufacturers alike. Autonomous vehicles and advanced driver assistance systems are also emerging, though they account for a smaller market share at present. As India transitions to a more technology-driven automotive landscape, the growth trends in this segment are significantly influenced by government initiatives and the rising adoption of electric vehicles. The push for electric powertrains is rapidly accelerating due to favorable policies, environmental awareness, and advancements in battery technology. Meanwhile, connected vehicles are benefitting from the proliferation of IoT and mobile technologies, contributing to an increasingly digital automotive ecosystem. The exploration of autonomous vehicles is also gaining momentum, albeit at a slower pace, as infrastructure and regulatory frameworks are still developing.

Technology: Connected Vehicles (Dominant) vs. Autonomous Vehicles (Emerging)

Connected vehicles dominate the Indian automotive technology landscape, offering substantial advantages such as enhanced safety features, real-time information retrieval, and improved user experiences. These vehicles are rapidly becoming integral in urban settings, where the need for connectivity and smart features aligns with consumer expectations. In contrast, autonomous vehicles represent an emerging segment with vast potential, capturing significant interest from both consumers and manufacturers. Despite the current challenges in infrastructure and regulatory acceptance, advancements in AI and sensor technology are setting the stage for future growth. Stakeholders are investing heavily in research and development, aiming to navigate obstacles and bring these innovative solutions to market, with a focus on safety, reliability, and societal acceptance.

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Regional Insights

North America : Innovation and Sustainability Focus

The North American automotive market is witnessing a significant transformation driven by innovation and sustainability. With a focus on electric vehicles (EVs) and advanced technologies, the region is expected to hold approximately 25% of The India Automotive Industry Market share. Regulatory catalysts, such as stricter emissions standards and incentives for EV adoption, are propelling growth. The U.S. and Canada are the largest markets, with a combined share of around 20%. Leading players like Ford and General Motors are investing heavily in EV technology, while new entrants are challenging traditional models. The competitive landscape is evolving, with a surge in startups focusing on autonomous vehicles and smart mobility solutions. Key players such as Tesla and Rivian are reshaping consumer expectations, making North America a hub for automotive innovation.

Europe : Regulatory Framework Driving Change

Europe's automotive industry is undergoing a paradigm shift towards sustainability, driven by stringent regulations and consumer demand for greener vehicles. The region is projected to account for approximately 30% of The India Automotive Industry Market, with Germany and France being the largest contributors, holding around 15% and 10% market shares respectively. The European Union's Green Deal and the Fit for 55 package are pivotal in shaping the future of mobility, promoting electric and hybrid vehicles. Countries like Germany, France, and Italy are at the forefront of this transition, with established manufacturers such as Volkswagen, BMW, and Renault leading the charge. The competitive landscape is characterized by a mix of traditional automakers and new entrants focusing on electric mobility. The presence of key players and a robust supply chain further enhance Europe's position as a leader in the automotive sector.

Asia-Pacific : Emerging Market Potential

The Asia-Pacific region is a powerhouse in the automotive industry, driven by rapid urbanization and increasing disposable incomes. India and China are the largest markets, collectively holding over 40% of The India Automotive Industry Market share. The Indian automotive sector is projected to grow significantly, supported by government initiatives like the Production-Linked Incentive (PLI) scheme, which aims to boost manufacturing and attract investments. Key players such as Tata Motors, Mahindra & Mahindra, and Maruti Suzuki dominate the landscape, with a strong focus on electric vehicles and sustainable practices. The competitive environment is intensifying as global manufacturers like Hyundai and Kia expand their presence. The region's growth is further fueled by advancements in technology and a shift towards smart mobility solutions, making it a critical area for automotive innovation.

Middle East and Africa : Resource-Rich Market Opportunities

The Middle East and Africa (MEA) region presents unique opportunities in the automotive sector, driven by resource wealth and increasing demand for mobility solutions. The automotive market is expected to grow, with South Africa and the UAE being the largest markets, holding approximately 15% and 10% of the regional share respectively. Government initiatives aimed at diversifying economies and enhancing infrastructure are key growth drivers. Leading players like Ford and Toyota are establishing a strong foothold, while local manufacturers are emerging to meet the growing demand. The competitive landscape is evolving, with a focus on affordable vehicles and innovative financing solutions. The region's potential is further enhanced by investments in electric mobility and smart transportation systems, positioning MEA as a significant player in The India Automotive Industry Market.

Key Players and Competitive Insights

The automotive industry in India is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and shifting consumer preferences. Major players such as Tata Motors (India), Maruti Suzuki (India), and Hyundai Motor India (South Korea) are at the forefront of this evolution, each adopting distinct strategies to enhance their market positioning. Tata Motors (India) has been focusing on electric vehicle (EV) development, aiming to capture the growing demand for sustainable mobility solutions. Meanwhile, Maruti Suzuki (India) continues to leverage its extensive distribution network and brand loyalty, emphasizing affordability and fuel efficiency in its offerings. Hyundai Motor India (South Korea) is investing heavily in digital transformation and smart mobility solutions, indicating a shift towards integrating technology into the driving experience. Collectively, these strategies contribute to a competitive environment that is increasingly influenced by innovation and consumer-centric approaches.

In terms of business tactics, localizing manufacturing and optimizing supply chains have emerged as critical strategies for companies operating in this market. The competitive structure appears moderately fragmented, with several players vying for market share while also collaborating on certain initiatives. This fragmentation allows for a diverse range of products and services, catering to various consumer segments. The collective influence of key players is significant, as they not only shape market trends but also set benchmarks for quality and innovation.

In December 2025, Tata Motors (India) announced the launch of its new electric SUV, the Nexon EV, which is expected to significantly enhance its market presence in the EV segment. This strategic move aligns with the Indian government's push for electric mobility and reflects Tata's commitment to sustainability. The introduction of the Nexon EV is likely to attract environmentally conscious consumers and strengthen Tata's competitive edge in a rapidly evolving market.

In November 2025, Maruti Suzuki (India) unveiled its latest hybrid model, the Baleno Hybrid, which aims to cater to the growing demand for fuel-efficient vehicles. This launch is strategically important as it positions Maruti to compete effectively against emerging players in the hybrid segment, while also addressing consumer concerns regarding fuel prices and environmental impact. The Baleno Hybrid is expected to bolster Maruti's sales and reinforce its reputation as a leader in the compact car segment.

In October 2025, Hyundai Motor India (South Korea) entered into a strategic partnership with a leading tech firm to develop advanced driver-assistance systems (ADAS) for its upcoming models. This collaboration underscores Hyundai's commitment to integrating cutting-edge technology into its vehicles, enhancing safety and driving experience. The partnership is likely to provide Hyundai with a competitive advantage as consumers increasingly prioritize safety features in their purchasing decisions.

As of January 2026, the automotive industry is witnessing a pronounced shift towards digitalization, sustainability, and the integration of artificial intelligence (AI) in vehicle design and manufacturing processes. Strategic alliances are becoming increasingly prevalent, as companies recognize the need to collaborate in order to innovate and meet evolving consumer demands. The competitive differentiation is expected to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. This transition may redefine market dynamics, compelling companies to invest in R&D and forge partnerships that enhance their technological capabilities.

Key Companies in the India Automotive Industry Market include

Industry Developments

Q3 2025: Maruti Suzuki to launch new mid-sized SUV on September 3 to regain market share Maruti Suzuki announced it will launch a new mid-sized SUV on September 3, 2025, as part of its strategy to strengthen its position in the competitive Indian passenger vehicle market.
Q3 2025: IIT-Hyderabad deploys India’s first driverless electric buses for daily campus service IIT-Hyderabad has introduced India's first driverless electric buses for regular campus operations, marking a significant milestone in autonomous vehicle deployment in the country.
Q3 2025: Ashok Leyland to infuse ₹305.7 crore in its two subsidiaries Ashok Leyland announced a capital infusion of ₹305.7 crore into two of its subsidiaries to support their growth and expansion plans.
Q3 2025: Tata Hitachi eyes ₹5,500 crore in FY26 revenue Tata Hitachi, a construction equipment joint venture, has set a revenue target of ₹5,500 crore for FY26 and plans to invest ₹150 crore in 2025, primarily to expand its heavy mining equipment portfolio.
Q3 2025: Classic Legends initiates ESOPs for employees, US launch impacted by Trump tariffs Classic Legends has launched an employee stock ownership plan (ESOP) for its workforce, while its planned US market entry has been delayed due to new tariffs.
Q3 2025: Royal Enfield to rev up Brazil presence amid cautious optimism Royal Enfield announced plans to expand its presence in Brazil, aiming to strengthen its international footprint in the motorcycle segment.
Q3 2025: How Mahindra Auto is scaling AI from factory floor to customer experience Mahindra Auto revealed new initiatives to integrate artificial intelligence across its manufacturing and customer service operations, aiming to enhance efficiency and user experience.
Q3 2025: Delhi plans pilot project to retrofit govt vehicles with advanced catalytic converters The Delhi government announced a pilot project to retrofit government vehicles with advanced catalytic converters to reduce emissions and improve air quality.
Q4 2024: The Centre has launched the PM E-DRIVE scheme with a budget of US$ 1.30 billion (Rs. 10,900 crore), effective from October 1, 2024, to March 31, 2026. The Indian government launched the PM E-DRIVE scheme to accelerate electric vehicle adoption, establish charging infrastructure, and develop an EV manufacturing ecosystem.

Future Outlook

India Automotive Industry Market Future Outlook

The India automotive industry is projected to grow at a 6.27% CAGR from 2024 to 2035, driven by technological advancements, increasing consumer demand, and government initiatives.

New opportunities lie in:

Expansion of electric vehicle charging infrastructure
Development of connected vehicle technologies
Investment in sustainable manufacturing practices

By 2035, the market is expected to be robust, driven by innovation and sustainability.

Market Segmentation

India Automotive Industry Market Fuel Type Outlook

Internal Combustion Engine
Electric
Hybrid
Compressed Natural Gas

India Automotive Industry Market Technology Outlook

Connected Vehicles
Autonomous Vehicles
Advanced Driver Assistance Systems
Electric Powertrains

India Automotive Industry Market Vehicle Size Outlook

Compact
Midsize
Full-Size
Luxury

India Automotive Industry Market Vehicle Type Outlook

Passenger Car
Commercial Vehicle
Two-Wheeler
Three-Wheeler

India Automotive Industry Market Market Channel Outlook

OEM
Aftermarket
Online Sales
Dealerships

Report Scope

MARKET SIZE 2024	611.35(USD Billion)
MARKET SIZE 2025	653.65(USD Billion)
MARKET SIZE 2035	1193.65(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.27% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Tata Motors (IN), Mahindra & Mahindra (IN), Maruti Suzuki (IN), Hindustan Motors (IN), Toyota Kirloskar Motor (IN), Honda Cars India (IN), Hyundai Motor India (KR), Ford India (US), Nissan Motor India (JP)
Segments Covered	Vehicle Type, Fuel Type, Market Channel, Vehicle Size, Technology
Key Market Opportunities	Growth in electric vehicle adoption driven by government incentives and evolving consumer preferences in the india automotive industry market.
Key Market Dynamics	Growing emphasis on electric vehicles driven by regulatory support and shifting consumer preferences in India.
Countries Covered	India