• Advanced driver-assistance system (ADAS) adoption grew >400% YoY in Q1 2024.
• The EV market grew ∼61% YoY and Hybrid Vehicle Market ∼65% YoY in Q1 2024.

New Delhi/Gurugram, 28 June 2024: As per new insights from CMR’s Auto Market Report Review for Q1 2024 released, India’s connected and electric vehicle markets surged, with 54% YoY growth in Connected Vehicles (CVs) and 61% in EVs. New model rollouts and escalating consumer demand for connected tech and alternative powertrains drove this expansion. The push for enhanced in-car digital experiences and feature-rich models further accelerated market demand.

According to Divya Maurya, Analyst – Smart Mobility Practice, CyberMedia Research (CMR), “At CyberMedia Research (CMR), our ongoing mobility research insights reveals a growing consumer appetite for hybrid and electric vehicles. Hybrids act as a stepping stone to full EV adoption, offering improved fuel efficiency and lower emissions. This trend aligns with India’s surging EV market, fuelled by climate policy changes and a strategic push by automotive OEMs to achieve cost parity with gasoline vehicles. These advancements are making EVs a more attractive and accessible option for Indian consumers, paving the way for a cleaner and more sustainable future.”

India Passenger Vehicle Market Highlights

The Electric Passenger Vehicle (EPV) segment experienced over 61% YoY growth in Q1 2024, with market share rising from 1.9% in Q1 2023 to 2.8% in Q1 2024.

Tata Motor’s Nexon, Tigor, and Punch EV; Mahindra’s XUV400; MG Motor’s Comet and ZS EV; and Citroen’s EC3, hold the major EPV segment market share.

The Connected Passenger Vehicle (PV) segment is rapidly capturing market share, exhibiting over 54% growth. Notably, connected technology is prevalent in hybrid and electric vehicles, with 94% of EVs and 63% of hybrid cars in Q1 2024 integrating these connected features.

The Luxury Passenger Vehicle (LPV) segment in India is experiencing robust growth, with a notable 22% YoY increase. This growth can be attributed to rising disposable incomes and young professionals’ preference for high-end vehicles. The luxury EV segment (LEV) is also growing, fuelled by new market entrants and innovative launches, contributing to a sustained upward trend in premium automotive sales.

Advanced Driver Assistance Systems (ADAS) adoption in passenger vehicles surged by over 400% YoY in Q1 2024. Level 2 autonomy saw a remarkable 554% YoY increase. Hyundai emerged as a dominant force in the ADAS market.

Future Market Outlook

Based on CMR’s estimates, by Q1 2027, Electric Vehicles are expected to represent nearly 14% of India’s PV market, while connected vehicles are projected to account for over 55% of the market. Additionally, ADAS technology is expected to capture approximately 10% of the market share.

“By 2026-27, connected and software-driven vehicles are poised to become key revenue streams. Personalized consumer data from these vehicles presents a lucrative opportunity, especially when OEMs forge strategic partnerships to unlock its value. Furthermore, proactive government policies that strengthen the EV ecosystem, expand charging infrastructure, and promote domestic manufacturing will further propel the overall growth of the auto sector,” added Nikhil Kanojia, Senior Analyst – Smart Mobility Practice, CyberMedia Research (CMR).

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About the CMR India PV Technology Report

The CMR India PV Technology Report from the CMR Smart Mobility Practice provides technological and market evolution in the PV market in India, with a focus on mapping the value chain, analysis on market dynamics and performance of key market players.

Key definitions

• Electric Passenger Vehicles (EPV) are the sub-segment of the Passenger segment, where instead of Internal Combustion Engines used in conventional vehicles, an electric motor is used which power the wheels. The energy is stored in battery packs rather than fuel tanks.

• Connected Passenger Vehicles (CPV) are cars having advanced embedded technology in them, namely, the Telematics System, that makes many advanced features such as, navigation, vehicle-geo fencing, tracking, and more possible.

• Virtual Cockpits are cars with multifunctional display screens, allowing passengers to fully connect with the vehicle. It has replaced the old and traditional conventional instrument cluster with a dashboard filled with physical buttons.  

• Advanced driver-assistance systems (ADAS) are electronic systems in a vehicle that use advanced technologies to assist the driver.