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According to IMARC Group's report titled "India Passenger Car Market Size, Share, Trends and Forecast by Vehicle Type, Fuel Type, Transmission Type, Price Segment, and Region, 2026-2034", The report offers a comprehensive analysis of the industry, including India passenger car market analysis, trends, share, and regional insights.

How Big is the India Passenger Car Industry?

The India passenger car market size was valued USD 63.01 Billion in 2025. By 2034, this figure is projected to reach around USD 111.33 Billion, with a compound annual growth rate (CAGR) of 6.53% over the forecast period (2026-2034).

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India Passenger Car Market Trends:

• Rising Consumer Preference for SUVs and Compact SUVs: Indian consumers increasingly prefer SUVs and compact SUVs due to higher ground clearance, road presence, improved safety perception, and suitability for diverse road conditions.


• Growing Integration of Connected and Smart Car Technologies: Automakers are adding connected features such as infotainment systems, navigation, telematics, and smartphone integration to enhance driving convenience and user experience.


• Increasing Focus on Fuel Efficiency and Low-Emission Vehicles: Manufacturers are developing fuel-efficient petrol, diesel, hybrid, and electric models to meet emission norms and rising fuel cost concerns.


• Expansion of Electric and Hybrid Passenger Car Offerings: EV and hybrid passenger car models are expanding gradually, supported by policy incentives, charging infrastructure development, and growing environmental awareness.


• Digitalization of Car Sales and Customer Engagement: Online bookings, virtual showrooms, and digital financing tools are transforming the passenger car purchase and ownership journey across India.

India Passenger Car Market Scope and Growth Analysis:

• Rising Disposable Income and Expanding Middle-Class Population: Growing middle-class households and improving income levels are driving higher demand for personal passenger vehicles nationwide.


• Improved Availability of Vehicle Financing and Easy EMIs: Attractive loan schemes, digital approvals, and flexible EMIs are encouraging first-time and repeat car buyers.


• Preference for Personal Mobility Over Public Transport: Health concerns and convenience preferences are increasing reliance on private passenger cars for daily commuting and travel.


• Government Support for Automotive Manufacturing and EV Adoption: Policy initiatives promoting domestic manufacturing and electric mobility are supporting long-term passenger car market growth.


• Expansion of Road Infrastructure and Urban Connectivity: Improved highways, expressways, and urban road networks are enabling higher vehicle usage and encouraging car ownership.

India Passenger Car Market Report Highlights & Segmentation Analysis:

The market report offers a comprehensive analysis of the segments, highlighting those with the largest India passenger car market share. It includes forecasts for the period 2026-2034 and historical data from 2020-2025 for the following segments.

Vehicle Type Insights:

• Hatchback


• Sedan


• SUV/MPV

The hatchback dominates with a market share of 48% of the total India passenger car market in 2025.

Fuel Type Insights:

• Petrol


• Diesel


• Electric


• Others

The petrol leads with a share of 72% of the total India passenger car market in 2025.

Transmission Type Insights:

• Automatic


• Manual

The manual holds the largest share with 78% of the total India passenger car market in 2025.

Price Segment Insights:

• Economy


• Mid-Range


• Premium and Luxury

The economy holds the highest share with a 54% share of the total India passenger car market in 2025.

Regional Analysis:

• North India


• West and Central India


• South India


• East India

North India dominates with a market share of 31% of the total India passenger car market in 2025.

Competitor Landscape:

The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.

Recent Developments & News (Verified Sources)

1. Government Incentivizes EV Passenger Cars

• India’s FAME-III scheme was approved to support electric passenger vehicle adoption with subsidies.


• The policy aims to lower EV ownership costs and expand charging infrastructure.

1. Rising Passenger Car Exports

• India posted record passenger car export volumes in FY2025.


• Multiple OEMs expanded manufacturing for global markets.

1. SUV Segment Continues Strong Growth

• SUVs accounted for the largest share in domestic passenger car sales in 2025.


• Consumer preference for space, comfort, and safety features remains high.

1. Interest Rate Cuts Boost Auto Loans

• Several banks reduced auto loan interest rates in 2025.


• Lower financing costs have energized car purchases among new buyers.

1. New EV Model Launches from Major OEMs

• Leading automakers announced multiple electric passenger car launches.


• Increased model variety is anticipated to accelerate EV adoption.

Other key areas covered in the report:

• COVID-19 Impact on the Market


• Porter’s Five Forces Analysis


• Strategic Recommendations


• Market Dynamics


• Historical, Current and Future Market Trends


• Market Drivers and Success Factors


• SWOT Analysis


• Value Chain Analysis


• Comprehensive Mapping of the Competitive Landscape


• Top Winning Strategies


• Recent Industry News


• Key Technological Trends & Development

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services.

IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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