Automotive Market in India: Industry Analysis and Global Outlook 2027

Automotive Market in India size was accounted for 3.49 Mn Vehicles in 2020. Two Wheelers, one of the segments reviewed in our report is dominating the market.

Automotive Market in India Overview:

With 3.49 million units sold in the passenger and commercial vehicle categories combined in 2020, India was the fifth-largest auto market. In 2019, it was the seventh-largest commercial vehicle manufacturer. Owing to a growing middle class and a young population, the two-wheeler category dominates the market in terms of volume. Furthermore, the increased interest of businesses in investigating rural markets boosted the sector’s expansion. Moreover, India is a major auto exporter, with excellent export growth prospects in the near future. In addition, various initiatives by the Indian government and major automobile manufacturers are projected to propel India to the forefront of the global automotive industry. Automotive market in IndiaTo know about the Research Methodology :- Request Free Sample Report 2020 is considered as a base year to forecast the Market from 2021 to 2027. 2020’s Market size is estimated on real numbers and outputs of the key players and major players across the globe. Past five years trends are considered while forecasting the Market through 2027. 2020 is a year of exception and analyzed specially with the impact of lockdown by region.

Automotive Market in India Dynamics:

The increasing young population and rising income of middle-class families are considered to result in the highest market share for India in the automotive sector. According to the Society of Indian Automobile Manufacturers (SIAM), In June 2021, the total production volume of commercial vehicles, passenger cars, three-wheelers, and two-wheelers combined was 1,693,639 units. The demand is further driven by increasing exports from India to other countries in terms of volume. Indian automotive exports accounted for 1,419,430 units from April 2021 to June 2021. Increasing investment of global leaders in automotive manufacturing is considered to drive the demand for the automotive market in India to a greater extent. According to Invest India, the Indian automotive sector received approximately 25.85 billion USD of FDI inflow from April 2000 to March 2021. According to PRS India, the Government of India is expected to attract 8-10 billion USD of foreign investments by 2024. Increasing support in policies by the government is expected to drive the demand for the automotive market in India as Make in India and Atmanirbhar Bharat are actually reshaping the economy of India. Automotive Mission Plan (2016-26) is the mutual initiative between Govt. of India and the Indian Automotive industry in order to lay down a roadmap for the development of the Automotive Industry. Automotive market in India 1 Expanding the research and development hub of India for the automotive industry is driving the growth of the market in India. According to SIAM, India accounts for 40% of the total $31 Bn. of global engineering and R&D spending. 8% of the country’s R&D expenditure is in the automotive sector. The gross value generated from the road transportation sector was the highest in India in the financial year 2020, at roughly 4.32 trillion Indian rupees. The expansion of the road network, combined with continued economic growth, resulted in a significant increase in the overall number of automobiles in the Indian subcontinent. Two-wheelers, trucks, cars, buses, three-wheelers, and other vehicles are part of the sector, which play an important role in the country's economic development. The car sector has been concerned about the problem of declining air quality and increased congestion. India has often been on lists of the most congested and dirty cities in the world. To deal with the growing pressure from NGOs and environmental groups, the government implemented a number of steps. New pollution rules were released, and electric car taxes were significantly decreased compared to conventional automobiles. With India on track to overtake China as the world's most populous country, the quantity of traffic on India's tiny, underdeveloped roadways is set to be a constant battle.

Automotive Market in India Segment Analysis:

Two Wheelers Dominate the sales by Volume in the Market:

The local Indian car market is dominated by two-wheelers and passenger automobiles. Small and mid-sized cars are the most popular passenger vehicles. In FY20, two-wheelers and passenger cars accounted for 80.8% and 12.9% of the market share, respectively, with a combined sale of approximately 20.1 million vehicles. Total automobile exports increased at a CAGR of 6.94% from FY16 to FY20, reaching 4.77 million vehicles in 2020. Two-wheelers accounted for 73.9% of all vehicles shipped, with passenger vehicles accounting for 14.2%, three-wheelers accounting for 10.5 percent, and commercial vehicles accounting for 1.3%. Vehicles accounted for a combined sale of over 20.1 million vehicles in FY20. Two-wheeler sales stood at 995,097 units, while passenger vehicle sales stood at 261,633 units in April 2021. Automotive market in India 2

Increasing EV Sales:

EV sales in India, excluding E-rickshaws, increased by 20% to 1.56 lakh units in FY20, driven mostly by two-wheelers. India's EV finance sector is expected to reach Rs. 3.7 lakh crore (US$ 50 billion) in 2030, according to NITI Aayog and Rocky Mountain Institute (RMI). According to a survey by the India Energy Storage Alliance, the EV industry in India is expected to grow at a CAGR of 36% by 2027. Additionally, the EV battery market is expected to grow at a CAGR of 30% during the same time period.

Increasing International opportunities for Prominent Players in the Region:

International markets, particularly those in Africa that are similar to India, are seeing increases in per-capita GDP and are approaching levels where vehicle sales are likely to grow significantly. Indian businesses have previously successfully handled this change at home, and they can use the same strategy to flourish in overseas markets. Indian automakers will enhance growth and sales volumes by expanding internationally, diversifying risks, and lowering demand cyclicality. Owing to recent tailwinds, this may be the biggest opportunity for Indian automotive suppliers to develop overseas in decades. Global automakers are seeking sourcing centers outside of China as they restructure their supply networks. Simultaneously, the Indian government is offering $7.5 billion in production-linked incentives to stimulate exports over the next five years. Automotive suppliers should take advantage of their advantages, such as low costs, process knowledge, excellent quality, and a focus on innovation, to pursue international expansion and capitalize on recent tailwinds. Many Indian businesses have already done so with great success. Exports, for example, make for almost 60% of total revenue and 30% at many tire companies.

Investment by Key players in the Market:

Several automakers have started investing extensively in various parts of the business in the last few months to keep up with the growing demand. According to data given by the Department for Promotion of Industry and Internal Trade, the industry attracted US$ 25.85 billion in foreign direct investment (FDI) between April 2000 and March 2020. (DPIIT).

Some of the key investments are:

• Hindustan Zinc Ltd. stated in August 2021 that it will invest $1 billion across its eight mines to replace diesel-powered trucks and equipment with battery electric vehicles. • Maruti Suzuki India stated in July 2021 that it would invest Rs. 18,000 crore (US$ 2.42 billion) on a new manufacturing facility in Haryana, with an annual capacity of 7.5-10 lakh vehicles. In order to maintain its market supremacy, the business plans to boost capital investment by 67 percent in FY22, to Rs. 4,500 (US$ 605 million). • Hyundai Motor India's new corporate headquarters in Gurgaon, funded by an Rs. 2,000 crore (US$ 269 million) investment, opened in July 2021. • Mahindra & Mahindra announced a three-year deal in April 2021 in the electric vehicles segment for 403 million USD. The objective of the report is to present a comprehensive analysis of the Automotive market in India to the stakeholders in the industry. The past and current status of the industry with the forecasted Market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include Market leaders, followers, and new entrants. PORTER, PESTEL analysis with the potential impact of micro-economic factors of the Market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers. The report also helps in understanding the Automotive market in India dynamics, structure by analyzing the Market segments and project the Automotive market in India size. Clear representation of competitive analysis of key players by Type, price, financial position, Type portfolio, growth strategies, and regional presence in the Automotive market in India make the report investor’s guide.

Automotive Market in India Scope: Inquire before buying

Global Automotive Market
Report Coverage Details
Base Year: 2020 Forecast Period: 2021-2027
Historical Data: 2016 to 2020 Market Size in 2020: US $ 3.49Mn.
Forecast Period 2021 to 2027 CAGR: 6.94% Market Size in 2027: US $ 5.6Mn.
Segments Covered: by Vehicle Type • Passenger Vehicles • Commercial Vehicles • Electric Cars • Two Wheelers • Three Wheelers
by Type • Petrol Operated • Diesel operated • Electric cars

Automotive Market in India, by region

• North America • Europe • Asia Pacific • Middle East and Africa • South America

Automotive Market in India Key Players

Tata Motors LtdMaruti Suzuki India Ltd • Mahindra & Mahindra Ltd • Hero MotoCorp Ltd • Bajaj Auto Ltd • Ashok Leyland Ltd • TVS Motor Company Ltd • Eicher Motors Ltd • Force Motors Ltd • SML ISUZU Ltd. • Honda Motor Co., Ltd. • Hyundai Motor India • Daimler AG • Piaggio & C.S.p.a. • Toyota Motor Corporation • Volkswagen AG • AB Volvo

FAQ’S:

1) What is the market share of the Global Automotive market in India in 2020? Answer: The Automotive market in India was accounted for 3.49 million Units in the year 2020. 2) Which vehicle segment is dominating the Automotive market in India? Answer: The local Indian car market is dominated by two-wheelers and passenger automobiles. Small and mid-sized cars are the most popular passenger vehicles. In FY20, two-wheelers and passenger cars accounted for 80.8% and 12.9% of the market share. 3) What are the key players in the Automotive market in India? Answer: The major players operating in the Automotive market in India include Tata Motors Ltd, Maruti Suzuki India Ltd, Mahindra & Mahindra Ltd, Hero MotoCorp Ltd, Bajaj Auto Ltd, Ashok Leyland Ltd, TVS Motor Company Ltd, Eicher Motors Ltd, Force Motors Ltd, SML ISUZU Ltd., Honda Motor Co., Ltd., Hyundai Motor India, Daimler AG, Piaggio & C.S.p.a., Toyota Motor Corporation, Volkswagen AG, AB Volvo 4) Which factor acts as the driving factor for the growth of the Automotive market in India? Answer: Increasing young population and rising income of middle-class families is considered to result in highest market share for India in the automotive sector. 5) What factors are restraining the growth of the Automotive market in India? Answer: The car sector has been concerned about the problem of declining air quality and increased congestion.
1. Preface 1.1. Market Definition and Key Research Objectives 1.2. Research Highlights 2. Assumptions and Research Methodology 2.1. Report Assumptions 2.2. Abbreviations 2.3. Research Methodology 2.3.1. Secondary Research 2.3.1.1. Secondary data 2.3.1.2. Secondary Sources 2.3.2. Primary Research 2.3.2.1. Data from Primary Sources 2.3.2.2. Breakdown of Primary Sources 3. Executive Summary: Automotive market in India Size, by Market Value (US$ Mn) 3.1. Global Market Segmentation 3.2. Global Market Segmentation Share Analysis, 2020 3.2.1. Global 3.2.2. By Region (North India, South India, East India, West India) 3.3. Geographical Snapshot of the Spring Size Market 3.4. Geographical Snapshot of the Automotive market in India, By Manufacturer share 4. Automotive market in India Overview, 2020-2027 4.1. Market Dynamics 4.1.1. Drivers 4.1.1.1. India 4.1.1.2. By Region (North India, South India, East India, West India) 4.1.2. Restraints 4.1.2.1. India 4.1.2.2. By Region (North India, South India, East India, West India) 4.1.3. Opportunities 4.1.3.1. India 4.1.3.2. By Region (North India, South India, East India, West India) 4.1.4. Challenges 4.1.4.1. India 4.1.4.2. By Region (North India, South India, East India, West India) 4.1.5. Industry Trends and Emerging Technologies 4.1.6. Porters Five Forces Analysis 4.1.6.1. Threat of New Entrants 4.1.6.2. Bargaining Type of Bucket of Buyers/Consumers 4.1.6.3. Bargaining Type of Bucket of Suppliers 4.1.6.4. Threat of Substitute Technologies 4.1.6.5. Intensity of Competitive Rivalry 4.1.7. Value Chain Analysis 4.1.8. Technological Roadmap 4.1.9. Regulatory landscape 4.1.10. Impact of the Covid-19 Pandemic on the Automotive market in India 5. Supply Side and Demand Side Indicators 6. Automotive market in India Analysis and Forecast, 2020-2027 6.1. Automotive market in India Size & Y-o-Y Growth Analysis. 7. Automotive market in India Analysis and Forecasts, 2020-2027 7.1. Market Size (Value) Estimates & Forecast by Type, 2020-2027 7.1.1. Petrol Operated 7.1.2. Diesel operated 7.1.3. Electric cars 7.2. Market Size (Value) Estimates & Forecast by Vehicle Type, 2020-2027 7.2.1. Passenger Vehicles 7.2.2. Commercial Vehicles 7.2.3. Electric Cars 7.2.4. Two Wheelers 7.2.5. Three Wheelers 8. Automotive market in India Analysis and Forecasts, By Region 8.1. Market Size (Value) Estimates & Forecast By Region, 2020-2027 8.1.1. North India 8.1.2. South India 8.1.3. East India 8.1.4. West India 9. North India Automotive market in India Analysis and Forecasts, 2020-2027 9.1. Market Size (Value) Estimates & Forecast by Type, 2020-2027 9.1.1. Petrol Operated 9.1.2. Diesel operated 9.1.3. Electric cars 9.2. Market Size (Value) Estimates & Forecast by Vehicle Type, 2020-2027 9.2.1. Passenger Vehicles 9.2.2. Commercial Vehicles 9.2.3. Electric Cars 9.2.4. Two Wheelers 9.2.5. Three Wheelers 10. North India Automotive market in India Analysis and Forecasts, 2020-2027 10.1. Market Size (Value) Estimates & Forecast by Type, 2020-2027 10.2. Market Size (Value) Estimates & Forecast by Vehicle Type, 2020-2027 11. South India Automotive market in India Analysis and Forecasts, 2020-2027 11.1. Market Size (Value) Estimates & Forecast by Type, 2020-2027 11.2. Market Size (Value) Estimates & Forecast by Vehicle Type, 2020-2027 12. East India Automotive market in India Analysis and Forecasts, 2020-2027 12.1. Market Size (Value) Estimates & Forecast by Type, 2020-2027 12.2. Market Size (Value) Estimates & Forecast by Vehicle Type, 2020-2027 13. West India Automotive market in India Analysis and Forecasts, 2020-2027 13.1. Market Size (Value) Estimates & Forecast by Type, 2020-2027 13.2. Market Size (Value) Estimates & Forecast by Vehicle Type, 2020-2027 14. Competitive Landscape 14.1. Geographic Footprint of Major Players in the Automotive market in India 14.2. Competition Matrix 14.2.1. Competitive Benchmarking of Key Players By Price, Presence, Market Share, and R&D Investment 14.2.2. New Product Launches and Product Enhancements 14.2.3. Market Consolidation 14.2.3.1. M&A by Regions, Investment and Verticals 14.2.3.2. M&A, Forward Integration and Backward Integration 14.2.3.3. Partnership, Joint Ventures and Strategic Alliances/ Sales Agreements 14.3. Company Profile: Key Players 14.3.1. TATA Motors India Ltd. 14.3.1.1. Company Overview 14.3.1.2. Financial Overview 14.3.1.3. Geographic Footprint 14.3.1.4. Product Portfolio 14.3.1.5. Business Strategy 14.3.1.6. Recent Developments 14.3.2. Maruti Suzuki India Ltd 14.3.3. Mahindra & Mahindra Ltd 14.3.4. Hero MotoCorp Ltd 14.3.5. Bajaj Auto Ltd 14.3.6. Ashok Leyland Ltd 14.3.7. TVS Motor Company Ltd 14.3.8. Eicher Motors Ltd 14.3.9. Force Motors Ltd 14.3.10. SML ISUZU Ltd. 14.3.11. Honda Motor Co., Ltd. 14.3.12. Hyundai Motor India 14.3.13. Daimler AG 14.3.14. Piaggio & C.S.p.a. 14.3.15. Toyota Motor Corporation 14.3.16. Volkswagen AG 14.3.17. AB Volvo

About This Report

Report ID 86126
Category Automotive and Transportation
Published Date March 2021
Updated Date Oct 2021
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