Summary:

Moody’s Ratings forecasted on May 27, 2025, that India’s vehicle sales would expand at a 3.5% CAGR - the highest in Asia - reaching 5.1 million units annually by 2030. Indian carmakers are investing Rs. 85,420 crore (US$ 10 billion) in lithium-ion cells, electric vehicles, and battery manufacturing, despite EV penetration being only 2%. Moody’s estimates that if 9 - 10% of two- wheeler owners switch to entry-level vehicles, replacement demand could reach 1.6 - 1.8 million units by 2030, a roughly 25% increase from 4.2 million in 2024.

Japanese, Korean, and Chinese corporations currently account for more than 70% of India’s automobile market, though domestic manufacturers are rapidly expanding. Tata Motors and Mahindra & Mahindra grew their market share from 11% in 2015 to 24% by 2024. Hyundai Motor Group’s share rose to 20% in 2024 from 18% in 2015, while Chinese firms hold approximately 1%. Japan’s aggregate share declined from 61% to 51%. India’s automobile sector grew by 60%, becoming the world’s third-largest market.

Source: IBEF

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