Domestic sales in the Indian Passenger Vehicle (PV) market declined by 9.1% to reach 3 million units in FY 2020. The study estimates the market size of the Indian PV market, as well as segment forecasts up to 2024, with due consideration for the various factors driving and restraining its growth. The segmental shifts in the PV market in India are evident from the greater number of participants and available models in the hatchback and the UV segments. The disparity within the segments is also clear in the shifting segmental share within the market. Naturally, the competition among market participants has intensified in these growing and popular segments. The competitive scenario is expected to be further impacted by the entry of new participants in the market from 2021. However, more than 50% of the market share remains with a single OEM. The market has also witnessed rapid growth and the increasing popularity of a few companies, with their well-received new product launches in 2018-2019 and a greater focus on rural segments.
The electric vehicles market in the country is gaining traction with the entry of new market participants and government incentives. Cars eRetailing and digitalization trends have been major disrupters in 2020. A move toward active safety features is another key trend witnessed in the market. Airbag and sensor penetration is increasing incrementally across all vehicle segments, and the next logical step toward driver and passenger safety in India is expected to be active safety features. Ride-hailing and ride-sharing service categories are highly competitive in India, with a few participants having the biggest market shares and new participants entering the segment with innovative offerings and OEM tie-ups.
The study also focuses on regional trends, such as diesel decline, electrification, and other technological trends. From a connectivity perspective, OEMs are introducing safety and security offerings through connectivity and differentiating their car models by providing better infotainment systems. Furthermore, the PV market in India is expected to witness increased diffusion of automotive transmission technologies such as Automatic Manual Transmission (AMT), Continuous Variable Transmission (CVT), Dual-clutch Transmission (DCT), and Stepped-Automatic Transmission (S-AT). Out of these, certain transmission technologies are expected to see higher diffusion than others, due to OEM interest and affordability. The study analyzes key market drivers and restraints and concludes with the key strategic imperatives for growth and success in the market.
-Report by Research and Markets
