India Sport Utility Vehicle (Suv) Market Forecast 2024-2032

India Sport Utility Vehicle (Suv) Market Forecast 2024-2032

The India sport utility vehicle (SUV) market is evaluated to rise at a CAGR of 7.06% across the forecasted period of 2024-2032. The market was valued at $45.71 billion in 2023, and is expected to reach a revenue of $84.33 billion by 2032.

MARKET INSIGHTS

The sport utility vehicle (SUV) market in India is experiencing significant growth, driven by a combination of government policies and evolving consumer preferences. The Indian government’s initiatives to promote environmentally friendly vehicles, particularly electric and hybrid SUVs, have been instrumental in this expansion. The implementation of Bharat Stage VI (BS6) emission standards in April 2020, aimed at reducing vehicular air pollution, has further supported the shift towards greener mobility solutions. Additionally, various subsidies and incentives for electric vehicles provided by the government have fostered the development of the SUV segment, emphasizing fuel efficiency and environmental sustainability, as reported by the Society of Indian Automobile Manufacturers.

Leading automotive manufacturers such as Maruti Suzuki, Hyundai, Tata Motors, and Mahindra & Mahindra have established a strong presence in the Indian SUV market. Maruti Suzuki, with its popular models like the Brezza and Grand Vitara, has reinforced its market position. Hyundai has achieved similar success with models such as the Creta and Venue, while Tata Motors has seen high demand for its Nexon and Harrier SUVs. Mahindra & Mahindra continues to lead with top-selling models like the Scorpio and XUV700. These brands have solidified their standing in the market through innovative designs and advanced features, as highlighted by reports from Autocar India.

Moreover, the SUV market in India is bolstered by increasing consumer demand for high-performance, technologically advanced vehicles. In 2024, India emerged as the third-largest car market globally, with SUVs accounting for over half of the passenger vehicle sales. This growth is fueled by the introduction of new models equipped with advanced driver assistance systems (ADAS) and other cutting-edge features. The ongoing shift towards electrification, supported by government incentives, has also played a critical role in the market’s expansion. An increasing number of consumers are opting for electric SUVs to reduce fuel costs and minimize environmental impact, according to reports from the Society of Indian Automobile Manufacturers. These factors, in turn, are set to boost the SUV market in India during the forecast period.

SEGMENTATION ANALYSIS

The India sport utility vehicle (SUV) market segmentation includes drivetrain type, SUV size, price range, seating capacity, and fuel type. The drivetrain type segment is further classified into two-wheel drive, four-wheel drive, and all-wheel drive.

Consumers who prioritize fuel efficiency and lower maintenance costs are increasingly gravitating towards the two-wheel drive (2WD) segment within the global sport utility vehicle (SUV) market. Typically offered in front-wheel drive configurations, these vehicles retain many of the advantages associated with traditional SUVs, such as higher ground clearance and spacious interiors, while delivering better fuel economy compared to their all-wheel drive counterparts. The 2WD SUV market is experiencing rapid growth, particularly in urban and suburban regions where off-road capabilities are less essential.

A standout model in the two-wheel drive category is the Honda CR-V, a compact SUV that combines practicality, comfort, and efficiency. The 2WD variant of the CR-V offers generous interior space, advanced safety features, and competitive fuel economy, making it an appealing choice for daily commuters and families alike. Similarly, the Toyota RAV4 2WD model has gained significant traction for its reliability, strong resale value, and the availability of hybrid powertrains, which appeal to environmentally conscious consumers.

COMPETITIVE INSIGHTS

Some of the major companies operating in the India sport utility vehicle (SUV) market include Tata Motors, Mahindra & Mahindra Ltd, Maruti Suzuki, etc.

Tata Motors Ltd (Tata Motors), headquartered in India, is a prominent manufacturer and distributor of automobiles, producing a wide range of vehicles, including passenger cars, utility vehicles, trucks, buses, and defense vehicles. In addition to its core automotive business, Tata Motors provides engineering services and automotive solutions. It also manufactures construction equipment, vehicle components, and supplies through various subsidiaries.

The company also engages in the production of machine tools, factory automation solutions, high-precision tooling, as well as plastic and electronic components for automotive and computer applications. Furthermore, Tata Motors manufactures engines for both industrial and marine applications. Its products are marketed under well-known brands such as Jaguar, Land Rover, and Tata Motors, with a global presence spanning Europe, the Middle East, North America, Africa, Asia, Russia, Oceania, Central America, and South America.

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