Passenger car market size in India | Insights, Trends & Growth Analysis 2025

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Code: MTA10206

Publication Date: Oct 2025

What is the growth rate of the India Passenger Car Market?

According to 6Wresearch internal database and industry insights, the India Passenger Car Market is expected to grow at a CAGR of 8% during 2025-2031.

The principal factors that contribute to this growth include ongoing urbanisation, growing disposable income, and rising demand for personal mobility. Electric vehicle governmental incentives and advancements in automotive technology further spur growth within the market.

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Growth Factors for India Passenger Car Industry

Urban population growth leads to increasing demand for personal vehicles.
Middle-class growth and increasing disposable income.
Government initiatives to promote electric vehicle sales.
Increasing road infrastructure leads to better connectivity.
Technological advances in automotive features & safety.

India Passenger Car Market Trends

The India Passenger Car market is exhibiting important trends, such as the growing consumer shift towards electric and hybrid vehicles, as environmental concerns and government incentives drive this segment of the market. The trend of consumers looking for more features or technology in their vehicles is driving new technology related to connected vehicles and autonomous vehicles. Consumers are also trending towards SUVs and compact cars, showing increased consumer preferences for versatility in addition to fuel economy.

Emerging Developments in the India Passenger Car Market

Emerging developments in the India Passenger Car market include the introduction of electric and hybrid models by major automakers, supported by government subsidies and infrastructure development. Companies are focusing on enhancing vehicle connectivity features, offering advanced infotainment systems, and integrating autonomous driving technologies to meet consumer expectations. The expansion of electric vehicle charging networks is also facilitating the adoption of electric cars, contributing to the market's growth.