Indian Automotive Market Forecast 2030

The Indian Automotive Market Forecast 2030 report is a detailed analysis that covers various market dynamics and their impacts.

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ACG predicts that the Indian Automotive Industry will grow at a CAGR of 1.7% from FY 2025 to FY 2030. The Indian Automotive Market size was ~25 million units in FY 2025.

Indian Automotive Market Forecast 2030:

In FY 2019, India sold 26.3 million vehicles, including trucks, buses, passenger cars, two-wheelers, and three-wheelers. FY 2022 registered 17.8M, the lowest number in the last 7 years, compared to the pre-COVID level. After reaching its lowest volume, the Industry began to grow annually.

The key growth drivers are Road Infrastructure development, Government policies, advancements in Automotive Technology, Consumer aspirations, and increased purchasing power.

Indian Passenger Vehicle Market Forecast 2030:

The expected CAGR between FY 2025 and FY 2030 will be around +6.2 percent. Indian Customers bought 4.3 million Cars, SUVs, MUVs, and Vans in FY 2025. This segment looks highly attractive due to its consumer affordability. SUVs and Budget segment cars in Metros, Big cities, and towns will be in demand by FY 2030.

Passenger vehicles are the second-largest segment in the Indian Automotive Industry. After COVID, customers prefer a car to a Two-Wheeler due to increased income, better road connectivity, Digital features, and comfort. The PV segment’s share has increased by 4 percent from FY 2019 to FY 2025.

India exported 0.77 million cars in FY 2025 with a +2.2 percent CAGR from FY 2019 to FY 2025.

Rising urban populations and first-time car buyers are key drivers for Compact cars in India. Early adopters are highly interested in adding Electric cars to their portfolio.

Indian Two Wheeler Market Forecast 2030:

The Indian two-wheeler segment is the largest in the Indian Automotive Industry. This segment lost 4% in the last 7 years, from 81% to 77% in FY 2025. It also showed that the customers preferred a car or a private four-wheeler. In FY 2019 and FY 2025, India sold 21.2 million and 19.6 million two-wheelers, respectively. Two-wheeler sales are expected to grow at 0.5% CAGR between FY 2025 and FY 2030.

Since the Indian two-wheeler product price, performance, and features fit the demand of many other countries’ customers, exports are expected to rise by 1.4% CAGR from FY 2025 to FY 20230. African and Asian markets are attractive export countries for most OEMs. Brands like Royal Enfield also target the European market since the company offers a different motorcycle experience than other Japanese and local manufacturers.

Indian two-wheelers are the only segment that registered 9% growth in FY2025 compared to FY2024.

Indian Commercial Vehicle Market Forecast 2030:

Commercial vehicle sales reached ~1 million in FY 2025, matching FY 2023 levels. Sales declined with a CAGR of -0.9% between FY 2019 and FY 2025. A 4.8% CAGR is expected for the Indian CV segment between FY 2025 and FY 2030. Double-digit growth is expected because the CV industry’s market drivers will be favourable for the next 10 years.

Indian Commercial Vehicles are the backbone of India’s logistics Industry because 70% of freight transport in India is by trucks. Trucks and buses are the two vehicle segments in the CV industry. Both segments have distinct characteristics and are influenced by different market dynamics. ACG provides Model and Brand Sales, Production, and Export Data Trends and Forecasts.

Government investment to develop infrastructure, the growing e-commerce sector, the demand for Electric trucks, Fleet modernization, and Integrated advanced technology in Trucks are key drivers for the Truck segment in India.

Mining and the Construction Industry are key drivers of the heavy Tipper segment growth. Container, Steel, and Grain are key drivers of the heavy-duty Haulage segment. ACG provides Model—and application-wise Truck and Bus Data and the split of overload and payload truck sales Data.

Central and State government urban mobility plans, better connectivity, the Adoption of Electric Buses, the increase in urban population, Tourism and Intercity travel, and the implementation of new safety regulations are key growth drivers for the Indian Bus Industry.

Indian Three-Wheeler Market Forecast 2030:

The Indian Three-Wheeler market showed -0.9 percent growth between FY 2019 and FY 2025. This segment is expected to register a 4.0 percent CAGR between FY 2025 and FY 2030. This Industry reached 0.74 million vehicles in FY 2025, equivalent to the pre-COVID level in India.

Low Operating costs, Affordability, Customer demand for Electric Three-Wheelers, Suitability for short-distance travel, and expected growth in the Export market are key drivers for the Indian Three-Wheeler segment.