The Indian car market, valued at US$ 32.70 billion in 2021, is projected to grow at a compound annual growth rate (CAGR) of 9%, reaching an estimated US$ 54.84 billion by 2027. Here are the top 10 automobile companies in India in 2024 that are shaping the future of this industry with innovation and leadership.
The automobile industry is a key player in the growth of the Indian economy, contributing nearly 7% of the country's GDP. Despite the slowdown caused by the pandemic, the industry has shown remarkable resilience and innovation. This growth is driven by advancements in technology and the rising popularity of electric vehicles. As the Indian automobile market continues to expand, several car companies stand out for their impressive contributions and popular launches.
Let’s explore the top 10 automobile companies in India for 2024 and highlight their most notable vehicles.
A decade at a glance: Growth of the automobile industry in India post liberalisation
Automobile production in India started in the early 1900s, soon after cars were invented. The first car built in India was a 150-horsepower, 12-cylinder Fiat model in 1897 by The Lorraine Company in Gujarat. Initially, only a few luxury cars were made for wealthy Indians.
A major shift happened in 1991 with economic liberalisation. The Indian government removed licensing requirements for automobile production and lowered import duties to attract global companies. This led to significant growth in the Indian automobile industry. Maruti Suzuki formed a joint venture with Suzuki, and soon after, other big names like Hyundai, Toyota, Ford, and Honda entered the market. Since then, the industry has seen tremendous growth.
In 2024, the Indian automobile industry reached a significant milestone by surpassing Japan and Germany to become the third-largest automobile market globally in terms of sales volumes. It also became the fourth-largest in terms of value. This growth is driven by the increasing penetration of vehicles across the country. India's annual production of automobiles in FY 2023 was 25.9 million vehicles.
The year 2024 saw record-breaking sales figures. In April alone, total passenger vehicle sales reached 287,746, marking a 1.2% growth compared to April 2023. According to data from the Society of Indian Automobile Manufacturers, the industry collectively sold 2,136,157 vehicles in April 2024, a significant increase from 1,712,812 vehicles sold in April 2023.
Today, the top 10 automobile companies in India play an important role in the economy by creating jobs, paying taxes, boosting exports, and adopting new technologies. The industry has opportunities due to changing customer needs, a growing middle class, increased urbanisation, and favourable regulations. However, challenges like high costs, infrastructure shortages, environmental concerns, and the need for technological advancements remain.
Top 10 Automobile Companies In India 2024
Let’s take a look at the top 10 car brands in India and their most popular launches.
1. Maruti Suzuki:
Maruti Suzuki, India's leading car manufacturer, is renowned for its wide range of models catering to diverse budget segments. Known for reliability, fuel efficiency, and affordability, Maruti Suzuki has built a strong reputation over the years.
The brand's reliability is a key factor, making their cars a preferred choice among Indian consumers. They focus on producing fuel-efficient vehicles, helping owners save on fuel costs. Maruti Suzuki offers affordable entry-level cars without compromising quality or performance. With a market share of 41.3%, Maruti Suzuki has adapted to changing market demands by launching the Nexa sub-brand, which has quickly gained popularity for offering premium options.
Popular models like the Swift, Baleno, and Dzire cater to various customer needs, excelling in different aspects.
2. TATA Motors
Tata Motors Ltd, a prominent Indian car manufacturer, holds the third largest market share in India at 13.4%. Known for its indigenous innovation and strong presence in the electric vehicle segment, Tata Motors leads with a remarkable 87% market share in EVs, driven by popular models like the Tata Nexon EV and Tata Tigor EV.
Tata Motors has seen substantial growth, with September sales reporting an impressive 85% year-on-year increase. The company is celebrated for its commitment to sustainable mobility through indigenous innovation in electric vehicles.
Safety is paramount for Tata Motors, evident in their cars' strong performance in crash tests and advanced safety features. They offer a versatile lineup including hatchbacks, sedans, SUVs, and electric cars, catering to diverse customer preferences.
Popular Tata Motors models in India include the Nexon, Punch, and Altroz, each offering competitive pricing and reflecting Tata's dedication to value and quality in the automotive industry.
3. Hyundai
Hyundai, a leading player in the Indian car market, is known for its stylish designs, advanced features, and strong emphasis on safety. Since entering the Indian market in 1991, Hyundai has secured the second-largest market share at 14.7%. The brand's commitment to high-performance cars has been consistently recognised, with its models winning the prestigious Indian Car of the Year award multiple times.
Hyundai cars are known for their contemporary designs that stand out on Indian roads, coupled with advanced features that enhance the driving experience. Safety is paramount, and Hyundai vehicles incorporate state-of-the-art technologies to ensure passenger safety. Known for offering great value, Hyundai provides competitive pricing and generous warranty options across its lineup.
Popular models like the i20, Creta, Verna, and Venue cater to diverse preferences, each delivering a distinct driving experience tailored to various needs in the Indian market.
4. Honda
Honda, a globally recognised car manufacturer known for reliability and performance, holds a significant place in the Indian automobile market despite a modest 2.1% market share. The Japanese brand's flagship model, the Honda City, achieved widespread popularity in India and was honoured with the Indian Car of the Year award in 2009.
Honda cars are esteemed for their refined engine technology, offering a smooth and responsive driving experience that enhances overall performance. Comfort is a key focus, with Honda vehicles designed to provide spacious and well-appointed cabins, ensuring a comfortable journey for both drivers and passengers alike.
Popular Honda models in India include the City, Amaze, WR-V, and Jazz, each exemplifying Honda's commitment to practicality and delivering enjoyable driving experiences tailored to diverse customer preferences.
5. Toyota
Toyota, a globally recognised brand renowned for reliability and durability, has firmly established itself in the Indian market since its entry in 1997 in partnership with the Kirloskar Group. Known for ergonomic and stylish designs, Toyota has become a leading car manufacturer in India.
Toyota cars are known for their exceptional quality and reliability, offering owners peace of mind with every drive. Safety is a top priority, with Toyota vehicles equipped with advanced safety features and technologies designed to enhance passenger protection.
One of Toyota's standout attributes is the strong resale value of its vehicles, making them a preferred choice for those looking to make a long-term investment in a reliable automobile. This reflects Toyota's commitment to delivering not only quality but also value over the lifetime of their cars.
Popular models in India include the Innova Crysta, Fortuner, Glanza, and Urban Cruiser, each designed to provide comfort and practicality while meeting diverse customer needs.
6. Kia
Kia, a South Korean automobile company, entered the Indian market in 2017 and has quickly risen as one of the top car brands. Despite being relatively new, Kia has established a strong presence with its sleek cars and competitive pricing, contributing significantly to the global Kia corporation through its Indian division.
Kia offers popular models like the Kia Seltos, Kia Carens EV, and Kia Carnival in India, Kia is known primarily for its range of SUVs and MPVs. These vehicles are appreciated for their sporty designs, comfort features, and advanced technology, catering to the preferences of modern Indian consumers.
Looking ahead, Kia has plans to introduce new models such as the Kia EV9 and Kia Sportage, expanding its lineup further and aiming to capture more market share in India's competitive automotive landscape. With a focus on innovation and customer satisfaction, Kia continues to strengthen its position as a key player in India's burgeoning automobile market.
7. Renault
Renault, a renowned French automobile company operating in 128 countries worldwide, has established itself as one of India's leading car manufacturers. Headquartered in Chennai, Tamil Nadu, Renault has gained popularity in India for its stylish and feature-packed vehicles.
Renault cars are known for their modern and eye-catching designs, incorporating innovative features and technologies that enhance the driving experience. Despite their advanced features, Renault maintains a focus on affordability, offering a range of cars that provide quality and performance without straining the budget.
Fuel efficiency is another hallmark of Renault vehicles, with a commitment to producing cars that reduce fuel consumption and operating costs, appealing to environmentally-conscious and budget-conscious consumers alike.
Popular Renault models in India include the Kwid, Triber, and Kiger, each tailored to different customer preferences and lifestyles while delivering a distinct and enjoyable driving experience.
8. Skoda
Skoda, a well-known European car manufacturer, has made significant strides in the Indian market, achieving record sales in the first half of 2022. India is now Skoda's third-largest global market, boosted by the successful launches of the Kushaq and Slavia models. The company expects 2022 to be its most successful year yet, with a strong 29% growth in retail sales in October, highlighting its confidence in India's automotive sector.
Skoda cars are known for their exceptional build quality, durability and longevity, making them a reliable choice for discerning consumers. They feature sophisticated and timeless design elements that impart a premium and luxurious feel, distinguishing Skoda vehicles on Indian roads. Emphasising driving dynamics, Skoda offers cars with responsive handling and a comfortable ride, enhancing the overall driving experience.
Popular models in India include the Rapid, Octavia, Superb, and Kushaq, each blending quality craftsmanship with stylish aesthetics and performance prowess.
9. Volkswagen
Volkswagen, a leading German car manufacturer in India, has established a strong presence with its stylish and performance-oriented vehicles. Despite holding a modest 1.87% market share, Volkswagen's class-apart designs and premium offerings have positioned it among the top 10 car brands in the country. The company views India as a strategic market due to its substantial growth potential and consumer interest.
Known for its strong build quality, Volkswagen cars are synonymous with durability and longevity, appealing to buyers seeking reliability in their vehicles. The brand's distinctive European design elements lend Volkswagen cars a premium and sophisticated aesthetic, setting them apart in the competitive Indian automotive landscape. Volkswagen vehicles are known for their engineering excellence, delivering a refined driving experience characterised by precision and superior performance.
Popular models in India include the Polo, Vento, T-Roc, and Tiguan, each combining stylish design with advanced features to offer a compelling blend of comfort and driving pleasure.
10. Mahindra & Mahindra Ltd
Mahindra & Mahindra, a prominent Indian car manufacturer, is renowned for its rugged and capable SUVs, solidifying its place among the top car brands in India. Recently, Mahindra reported its highest-ever monthly sales, achieving a remarkable 129% growth and emerging as a leader in the competitive SUV segment. The brand continues to innovate, planning to expand its presence in the electric vehicle market by introducing five new cars, including models under their existing twin-peaks banner and a new sub-brand called 'BE'.
Mahindra vehicles are known for their off-roading capabilities and are designed to navigate challenging terrains while ensuring a comfortable driving experience. Built with robust quality, Mahindra cars are engineered to withstand harsh conditions, emphasising durability and longevity, appealing to adventurous drivers and enthusiasts alike.
Mahindra caters to diverse customer preferences with a wide range of models, offering compact SUVs like the XUV300 to larger, full-sized options such as the XUV700 and Scorpio. Popular models like the Thar and Bolero exemplify Mahindra's adventurous spirit, combining rugged appeal with modern features to meet the demands of Indian consumers seeking reliable and capable SUVs.
EV: The future of automobile in India
As India aims to become the world's third-largest economy, the automotive sector stands out as a symbol of progress, promising a sustainable and prosperous future. Supported by liberalisation reforms and technological advancements, the top car companies in India are defining the country's manufacturing strength and innovation, contributing to employment, GDP growth, and global exports.
Despite challenges such as infrastructure limitations and environmental concerns, the industry is poised for substantial growth. This growth is fueled by developments in electric mobility, connectivity, and shared transportation initiatives.
