India's SUV Market Size was valued at USD 8.6 Billion in 2022. The India SUV market industry is projected to grow from USD 8.7 Billion in 2023 to USD 10.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.0% during the forecast period (2024 - 2032). The increasing demand for versatile and spacious vehicles suitable for both urban and rural terrains is a significant market driver for the SUV market in India.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In recent years, India has seen a substantial increase in the number of electric vehicles (EVs) as the nation strives to combat air pollution and reduce its ecological footprint. This shift is especially evident in the SUV industry, where there is a growing demand among consumers for environmentally sustainable alternatives that do not sacrifice performance or aesthetic appeal. Multiple factors contribute to the increasing popularity of electric SUVs in India. In the realm of electric vehicle promotion, government policies and incentives assume a pivotal role. To encourage the adoption of electric vehicles, the Indian government has implemented a number of programs and subsidies, including tax incentives, reduced GST rates, and subsidies for electric vehicle manufacturers. As a result of these incentives, electric SUVs are more accessible to the general public, which stimulates market demand. The Indian SUV market is currently experiencing an upsurge in the desire for connected features and advanced safety technologies as consumers actively pursue automobiles that provide improved convenience, entertainment, and road safety. Multiple factors contribute to this trend, which is significantly altering the SUV offerings in the nation.
To begin with, the advent of smartphones and mobile connectivity has fundamentally altered the way in which consumers anticipate in-vehicle technology to function. Indian consumers are placing growing demands on automobiles to provide effortless integration with their devices. This integration should enable users to conveniently access applications, navigation, and entertainment services through the vehicle's infotainment system. In order to satisfy consumer demand, manufacturers are equipping their SUV models with advanced connectivity features, including Apple CarPlay, Android Auto, and built-in 4G LTE Wi-Fi hotspots. Second, the Indian automotive market is placing an increasing emphasis on safety, which is a result of heightened awareness of road accidents and stricter regulatory requirements. Automobiles with sophisticated safety features are gaining popularity among consumers as a means of safeguarding themselves and their families while traveling. Consequently, automotive manufacturers are equipping their SUV models with advanced driver assistance systems (ADAS), including but not limited to blind-spot monitoring, adaptive cruise control, automatic emergency braking, and lane-keeping assist, in an effort to reduce accident risks and improve overall safety.
The India SUV market segmentation, based on the type of SUVs, includes compact, mid-size, and large SUVs. With respect to the Indian SUV market, the compact segment maintains the most significant market share. Compact SUVs are widely favored due to their affordability, adaptability, and appropriateness for urban traveling conditions. These vehicles provide an optimal blend of cabin volume, fuel economy, and maneuverability, rendering them attractive to an extensive spectrum of consumers. Furthermore, compact SUVs are frequently outfitted with cutting-edge technology and features, which increase their market appeal. In general, the compact SUV sector exhibits market dominance in India, as it effectively addresses the varied requirements and preferences of consumers.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The India SUV market segmentation, based on seating capacity, includes 5-seater and 7-seater. At present, the 5-seater segment holds the most significant market share in the Indian SUV market. The prevalence of this dominance can be ascribed to a multitude of factors. These include the inclination towards compact, maneuverable automobiles within urban settings, the reduced price tag associated with 5-seater models, and the fact that they primarily accommodate smaller families or individuals. Moreover, 5-seater SUVs frequently strike a harmonious equilibrium among affordability, fuel efficiency, and interior cabin space, rendering them a favored option among a diverse spectrum of consumers. Consequently, the segment comprising 5-seater SUVs maintains its market share leadership in India.
The India SUV market segmentation, based on Fuel Type, includes petrol, diesel, and electric powertrains. Presently, the petrol segment maintains the most significant market share in the Indian SUV market. The prevalence of gasoline fueling stations, the relatively low initial investment required to purchase an automobile in comparison to diesel or electric alternatives, and the perception that gasoline engines provide more refined and silent operation all contribute to this dominance. Moreover, the proliferation of petrol engine technology advancements has contributed to enhanced fuel efficiency and diminished emissions, thereby bolstering the appeal of SUVs propelled by petrol among Indian consumers. Consequently, the vast majority of SUV purchasers in India favor the petrol segment.
Several significant factors are propelling the SUV market in India to robust growth, including shifting consumer preferences, expanding infrastructure, rising disposable incomes, and urbanization. The increasing preference for SUVs among Indian consumers, driven by their perceived safety, comfort, and adaptability, has resulted in a market expansion that provides a diverse selection of vehicles to cater to various requirements and inclinations. An important factor influencing the expansion of the SUV industry in India is the rising desire for compact and midsize SUVs. These automobiles provide an optimal blend of cabin volume, fuel economy, and cost-effectiveness, rendering them highly suitable for driving in urban environments. Due to the accelerated urbanization and traffic congestion in Indian cities, there has been a notable surge in the demand for compact and mid-size SUVs among urban commuters in search of transport options that are both practical and adaptable. An additional development observed in the Indian SUV market is the increasing prevalence of connected functionalities and sophisticated safety technologies. There is a growing trend among Indian consumers to place greater importance on automobiles that provide advanced infotainment systems, seamless integration with their devices, and driver assistance features, including adaptive cruise control, lane-keeping assist, and automatic emergency braking. In response, manufacturers are integrating these technologies into their SUV models in order to satisfy consumer demands and maintain market competitiveness.
Several significant factors are propelling the SUV industry in India to robust growth, including shifting consumer preferences, expanding infrastructure, rising disposable incomes, and urbanization. The increasing preference for SUVs among Indian consumers, driven by their perceived safety, comfort, and adaptability, has resulted in a market expansion that provides a diverse selection of vehicles to cater to various requirements and inclinations.
An important factor influencing the expansion of the major players in the Indian SUV market is the rising desire for compact and midsize SUVs. These automobiles provide an optimal blend of cabin volume, fuel economy, and cost-effectiveness, rendering them highly suitable for driving in urban environments. Due to the accelerated urbanization and traffic congestion in Indian cities, there has been a notable surge in the demand for compact and mid-size SUVs among urban commuters in search of transport options that are both practical and adaptable. An additional development observed in the Indian SUV market is the increasing prevalence of connected functionalities and sophisticated safety technologies. There is a growing market development to place greater importance on automobiles that provide advanced infotainment systems, seamless integration with their devices, and driver assistance features, including adaptive cruise control, lane-keeping assist, and automatic emergency braking. In response, leading market players are integrating these technologies into their SUV models in order to satisfy consumer demands and maintain market competitiveness.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 8.6 Billion |
| Market Size 2023 | USD 8.7 Billion |
| Market Size 2032 | USD 10.2 Billion |
| Compound Annual Growth Rate (CAGR) | 2.0% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type of SUV, Fuel Type, Seating Capacity, Seating Capacity, and Region |
| Countries Covered | India |
| Key Companies Profiled | Hyundai Motor Company, Tata Motors Ltd., Mahindra & Mahindra Limited, Maruti Suzuki India Limited, Toyota Motor Corporation, SAIC Motor Corp., Ltd., Volkswagen AG, Stellantis N.V., Ford Motor Company, and Honda Motor Co., Ltd. |
| Key Market Opportunities | ·        Addressing the growing demand for eco-friendly vehicles, leveraging government incentives and infrastructure improvements. ·        Catering to tech-savvy consumers' preferences, enhancing convenience and safety, and staying competitive in the market. |
| Key Market Dynamics | ·        Increasing demand for SUVs due to improved road networks, parking facilities, and urban lifestyle preferences. ·        Affording consumers the ability to purchase SUVs for status, comfort, and practicality, driving market growth. |
Frequently Asked Questions (FAQ) :
The India SUV market size was valued at USD 8.7 Billion in 2023.
The market is projected to grow at a CAGR of 2.0% during the forecast period 2024-2032.
The key players in the market are Hyundai Motor Company, Tata Motors Ltd., Mahindra & Mahindra Limited, Maruti Suzuki India Limited, Toyota Motor Corporation, SAIC Motor Corp., Ltd., Volkswagen AG, Stellantis N.V., Ford Motor Company, and Honda Motor Co., Ltd.
The compact SUV category dominated the market in 2023.
The 5-seater category had the largest share of the market.
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