Medium Cars - India

India

Revenue in the Medium Cars market is projected to reach €2bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.34%, resulting in a projected market volume of €2bn by 2029.
Medium Cars market unit sales are expected to reach 264.2k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to €8k.
From an international perspective it is shown that the most revenue will be generated in China (€82,830m in 2024).

Key regions: India, United States, Germany, China, Europe

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Analyst Opinion

The Medium Cars market in India has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing demand for medium-sized cars among Indian consumers. Medium cars offer a good balance between affordability and comfort, making them a popular choice for many middle-class families in India. These cars are spacious enough to accommodate a family of four or five, while still being compact enough to navigate the often congested Indian roads. Additionally, medium cars are known for their fuel efficiency, which is an important consideration for Indian consumers who are increasingly conscious of rising fuel prices.

Trends in the market: In recent years, there has been a shift in the design and features offered by medium-sized cars in India. Manufacturers are focusing on incorporating advanced safety features, such as anti-lock braking systems and airbags, to meet the growing demand for safer vehicles. Additionally, there has been a trend towards incorporating more technology and connectivity features, such as touchscreen infotainment systems and smartphone integration, to cater to the tech-savvy Indian consumers. Another trend in the market is the increasing popularity of electric and hybrid medium-sized cars. As the Indian government pushes for greater adoption of electric vehicles to reduce pollution and dependence on fossil fuels, more manufacturers are introducing electric and hybrid models in the medium car segment. This trend is expected to continue as the government provides incentives and infrastructure support for electric vehicles.

Local special circumstances: India is a price-sensitive market, and affordability plays a crucial role in the purchasing decisions of Indian consumers. Medium-sized cars are often priced competitively, making them an attractive option for budget-conscious buyers. Additionally, the availability of financing options and attractive loan schemes further contribute to the growth of the medium car market in India.

Underlying macroeconomic factors: The economic growth of India has been a key driver of the medium car market. With a rapidly growing middle class and increasing disposable incomes, more Indian consumers are able to afford medium-sized cars. Additionally, the government's focus on infrastructure development has improved road connectivity in many parts of the country, making car ownership more feasible for a larger section of the population. In conclusion, the Medium Cars market in India is growing due to customer preferences for affordable and fuel-efficient vehicles, the introduction of advanced safety and technology features, the increasing popularity of electric and hybrid cars, the affordability of medium-sized cars in the Indian market, and the overall economic growth of the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).