New Delhi/Gurugram, 18th Feb 2025: The Indian Passenger Vehicle market witnessed a 4% year-on-year (YoY) growth in CY2024, according to the latest CMR India Passenger Vehicle Technology Market Report 2024 by CyberMedia Research (CMR), a leading tech analyst firm.
The electric vehicle (EV) segment grew by 8% YoY, while hybrid vehicles surged by an impressive 26% YoY. Additionally, passenger vehicle exports recorded a strong 12% YoY growth, reflecting the increasing global demand for Made in India vehicles.
According to Shipra Sinha, Senior Analyst – Smart Mobility Practice, CyberMedia Research (CMR), “Positive consumer sentiment, macroeconomic stability, and rapid technological advancements have been key drivers of growth across vehicle segments in 2024. The surge in ADAS adoption, coupled with the rise of connected and digital technologies, underscores the industry’s commitment to safety, innovation, and enhanced user experiences.”
Key Technology Trends Shaping Passenger Vehicle Market in 2024:
- Connected Passenger Vehicles (CPVs): The CPV market grew by 22% YoY, fueled by advancements in telematics, AI, and IoT technologies.
- Connected EPV segment grew by 5% YoY, with 93% of electric vehicles now equipped with connected technology.
- Digital Cockpits: Vehicles equipped with digital clusters saw a 33% YoY growth, as automakers prioritized digital transformation to enhance user experience and connectivity.
- Digital Clusters: the adoption of digital clusters rose to 29% in CY2024, up from 23% in CY2023, reflecting the industry’s shift toward feature-rich, tech-driven vehicles.
- Advanced Driver-Assistance Systems (ADAS): ADAS adoption skyrocketed by 242% YoY, driven by stringent government safety regulations and mandates for vehicle-to-everything (V2X) communication.
- SUV Dominance: SUVs continued to dominate the market, capturing 58% of the passenger vehicle market share, up from 51% in CY2023.
Electric Vehicle Market Leadership
Tata Motors emerged as the leader in the electric passenger vehicle (EPV) segment, commanding a 60% market share. Key models driving this growth included Tata Nexon, Tata Tigor, and Tata Punch.
MG Motors recorded an impressive 67% YoY growth, securing 21% of the EPV market, driven by MG Comet and MG ZS EV. Mahindra XUV400 EV also contributed significantly to the segment’s growth.
Future Market Outlook
Based on CMR’s estimates, electric vehicles are projected to account for approximately 5-6% of India’s passenger vehicle market. CMR anticipates the overall Indian passenger vehicle market to grow at a single-digit YoY rate by the end of CY2025. Meanwhile, CPVs and PVs equipped with digital clusters are expected to capture over 35% of the market share each in CY2025.
“The future of India’s passenger vehicle market is poised for a significant transformation, driven by electrification, connected mobility, and autonomous technologies. The expansion of road infrastructure, flexible financing options, and the rise of subscription-based and shared mobility solutions are making vehicle ownership more accessible. Additionally, the widespread adoption of 5G networks will accelerate connectivity, enabling over-the-air (OTA) updates and vehicle-to-vehicle (V2V) communication, paving the way for a more advanced and integrated automotive ecosystem,” added Divya Maurya, Analyst – Smart Mobility Practice, CyberMedia Research (CMR).
