Car Market in India: Size, Players, and What’s Driving Growth

When you think about the car market in India, a rapidly expanding sector shaped by rising incomes, government policies, and local manufacturing. Also known as the automotive industry in India, it’s no longer just about buying cars—it’s about building them, servicing them, and owning them in ways that reflect a new kind of middle-class reality. In 2024, India sold over 5 million passenger vehicles, making it the fourth-largest car market globally. That’s not a fluke. It’s the result of factories in Gujarat, Tamil Nadu, and Maharashtra churning out vehicles designed for Indian roads, fuel prices, and family needs.

The real story isn’t just about foreign brands like Hyundai or Toyota. It’s about Indian car brands, companies like Tata Motors and Mahindra that dominate sales by understanding local demands. Tata’s Nexon and Punch, Mahindra’s Scorpio-N and Thar—these aren’t just models. They’re cultural icons. They’re built for potholes, packed with features, and priced to win. Meanwhile, automotive manufacturing in India, a sector boosted by Make in India incentives and global supply chain shifts, now produces more than 80% of the cars sold here. That means parts, batteries, engines, and even software are increasingly made in India, not imported.

What’s changing fast? Electric vehicles. The government isn’t just pushing EVs—it’s funding charging stations, cutting taxes, and demanding local battery production. Companies like Ola Electric and Tata are racing to lead, while traditional makers are upgrading their lines. But here’s the catch: most buyers still want diesel or petrol. Why? Because charging isn’t convenient everywhere. Fuel is still cheaper than electricity in many places. The transition isn’t overnight—it’s messy, real, and happening right now.

And it’s not just about the cars themselves. It’s about financing, insurance, resale value, and after-sales service. Dealerships now offer EMI plans that let you drive off with a new car for under ₹10,000 a month. Used car platforms like Cars24 and Spinny have turned resale into a science. The car sales in India, a dynamic ecosystem where digital platforms now influence over 40% of purchases aren’t just numbers—they’re lives changing, families growing, and small businesses thriving.

What you’ll find in the posts below aren’t guesses or fluff. They’re real insights pulled from the heart of India’s manufacturing and sales landscape. You’ll see who’s winning, what’s falling behind, and how the next five years will reshape what you drive, how you pay for it, and where it’s made. This isn’t theory. It’s what’s happening on the streets, in the factories, and at the dealership next door.

Which Cars Are Not Made in India? Global Brands and Their Manufacturing Origins

Which Cars Are Not Made in India? Global Brands and Their Manufacturing Origins
2 August 2025 Jasper Hayworth

Find out which international car brands and models are not manufactured in India, why they aren't, and what that means for Indian car buyers and the market dynamics today.