Share of passenger cars in total vehicle fleet India FY 1951-2020

Passenger cars accounted for about 13.4 percent of the total operating vehicle fleet across India in financial year 2020. The relative low percentage was due to the fact that India’s automotive market is dominated by two-wheelers. Two-wheelers had a market share of over 80 percent among the vehicles sold in financial year 2020.

Leading passenger car manufacturers

India’s passenger car market is dominated by Maruti Suzuki with almost half of the market share. By the end of 2019, it became the only car manufacturer in India to sell over 20 million passenger vehicles. Tata Motors and Hyundai Motors are the two main competitors of Maruti Suzuki. In the export market, Hyundai surpasses Maruti Suzuki by a small margin and Tata Motors leads the domestic commercial vehicle market with a share of 42.3 percent.

Two-wheelers in India

India was the largest producer of two-wheelers in the world. The leading manufacturer of two-wheelers in the country was Hero MotoCorp, followed by Honda and TVS. The popularity of two-wheelers has been increasing for many years, owing to their relative affordable price, the inadequate public transport system, increasing traffic congestion, and narrow, difficult to navigate Indian roads. However, the huge number of two-wheelers on the road has also created many issues i.e., air pollution, traffic accidents, and still worsening traffic congestion.