India Passengers Vehicle Market Size

India Passengers Vehicle Market Future Prospects

The Indian passenger vehicle market has a size of USD 38.8 billion in 2024, which is expected to reach USD 96.0 billion in 2032, rising at a CAGR of 12.1% during the forecast period (2025–2032).

Cars are an integral segment of India’s automotive industry due to economic growth, increasing disposable income, and growing middle-class demographics. These vehicles support intercity travel, regular commuting, and tourism. With India’s population exceeding 1.45 billion, the demand for everyday commuting solutions is increasing.

Urbanization, better road infrastructure, and increasing consumer aspirations are fueling the demand for passenger cars in urban and rural settings in India. The Indian market is also witnessing a shift toward environment-friendly alternatives, with electric vehicles (EVs) gaining traction owing to the government incentives and increasing sustainability consciousness.