The Indian Passenger Vehicle Market showed a CAGR of +5.2% from 2014 to 2024. However, the market is likely to experience some correction, reflecting a slight rebound in 2025 compared to 2024. It is expected that by 2030, the Indian passenger vehicle market will touch 5 million.
The Indian passenger Vehicle market size was USD 46.5 billion in 2024, compared to USD 22.58 billion in 2014.
Mahindra is in second place in terms of Value in Billions INR.
The Indian PV market reached 4.2 million units in 2024, 1.7 times the level in 2014. The peak of the pre-COVID level was 3.4 million units. From 2021, Passenger vehicles bounced back and surpassed the pre-COVID level in 2022. The Indian Passenger Vehicle Market recovered quickly after the COVID-19 pandemic, registering a 15% compound annual growth rate (CAGR) from 2020 to 2024.
From Diesel to Electric: India’s Powertrain Transition Unfolds (2014–2024)
In 2014, Indian Passenger vehicles, which include SUVs, Cars, and Vans, were available mainly in Petrol, Diesel, and Petrol/CNG fuel types. In 2014, Diesel and Petrol vehicles were replaced by Petrol-CNG, Electric Drivetrain, Strong Hybrid, and other fuel types.
Electric Car and SUV reached to 2.5% market share in 2024.Petrol-CNG demand is continuously increasing, with an 18% market share, up from 6.4% in 2014. Strong Hybris vehicle is also getting popular in 2014.
SUV, MUV, Car, and Other Segment:
The SUV segment share has increased from 14% to 53% between 2014 and 2024. The SUV segment is expected to hold more than 50% of the market share in 2024. Hyundai recently announced it will launch new models in the SUV segment to regain its market share.
The MUV segment also gained a 6% market share, while the Car segment lost a 40% segment share over the last 10 years.
SUV sales have been in top gear since 2021. This segment achieved a 20.3% compound annual growth rate (CAGR) over five years. There are multiple reasons behind this trend, the most important of which is that customer purchasing power has increased. Many models have different features and price options.
SUVs are available for less than 10 lakhs, an attractive price point. This price point attracts a large number of buyers because the per capita income is continuously increasing. The finance is readily available.
The MUV segment is expected to register an 8.2% CAGR from 2014 to 2024. The market size doubled in 10 years because the MUV vehicle meets family requirements, including sufficient space, safety, comfort for long distances, and DIgital features. MUVs like Ertiga and Carens are in high demand.
On the other hand, the car segment is losing its momentum continuously.
Competitor Landscape: Car, SUV, and MUV
Maruti Suzuki continues to hold the leading position in the Indian Passenger Vehicle segment. Maruti’s market share declined by 5%. If the Van segment is excluded, there is a loss of 7% market share. The reason behind it is that the overall car segment declined, and Maruti was known for its leading position in the Small car segment. The car segment is continuing to fall, and it has a direct impact on Maruti Suzuki’s performance.
Another traditional second-largest player, Hyundai, is also losing its market share. Tata Motors, Mahindra, and Kia are growing due to the launch of their new models and their product-market fit.
Indian Car Buyers Shift Focus to Premium Hatchbacks
Premium Hatchback is the top choice in the car segment because it offers a balance between cost and advanced features. This is the ideal car for urban areas. It comes with attractive mileage and an easy-to-find parking place.
New models are arriving with premium quality and advanced safety features, including Anti-Lock Braking System (ABS).
The Segment share of Premium Hatchback cars increased from 37% to 57% in the last 10 years. All other segments lost their share in the same period.
Indian Buyers prefer large SUVs:
The SUV D-segment increased its market presence from 26% to 37% between 2014 and 2024. Indian buyers are recently upgrading the test of SUVs. The C-segment SUV also experienced steady growth. This segment share increased by 2% over the last 10 years. In 2014, the SUVB segment was a growing segment; however, by 2024, it had lost its momentum.
Buyers in the MUV segment are also focusing on more premium models.
