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Report Overview
The India E-SUV market is projected to grow at a CAGR of 20.80% between 2024 and 2032, aided by the rising demand for premium electric vehicles equipped with smart technologies and modern interior designs.
2023
Base Year
2018-2023
Historical Year
2024-2032
Forecast Year
- Under the “Festival of Cars” campaign during September 2024, Tata Motors provided 6 months of free EV charging across all Tata Power Stations.
- Under the PM E-Drive Scheme, three-wheeler manufacturers are expected to receive nearly INR 3,16,000 in subsidies for automotive production.
- During H1, 2024, SUVs accounted for 55% of the overall vehicle sales of Mercedes Benz.
India E-SUV Market Growth
In March 2024, the Indian government introduced significant changes to its electric vehicle policy to encourage legacy carmakers to set up manufacturing plants in the country. While 70% import duty was formerly imposed on luxury EV imports, those establishing production facilities in India are allowed to pay a 15% customs duty on vehicles with a minimum CIF (cost, insurance, freight) of $35,000. Moreover, companies investing USD 500 million in India between 2024 and 2027 are mandated to achieve a localisation level of 25% and 50% of domestic value addition within 5 years.
The shift towards sustainability has considerably enhanced the demand for electric vehicles in India, with nearly 70% of consumers in tier-one cities considering an EV for their next automotive purchase. This is substantially higher than the global average of 52%. The shift towards EVs is underpinned by numerous factors, including low ecological impact (67%), lower ownership costs (26%), and reduced noise emissions (26%). Battery electric vehicles have emerged as the main preference for Indian consumers (49%), followed by plug-in hybrid electric vehicles (21%).
Compound Annual Growth Rate
Value in
20.8%
2024-2032
India E-SUV Market Outlook
*this image is indicative*
Key Trends and Developments
Rising demand for luxury vehicles; integration of ADAS features in e-SUVs; the development of innovative HMI displays; and the growing focus on increasing vehicle range are favourably impacting the India e-SUV market expansion
Rising Demand for Luxury Vehicles
In 2024, the total investment made by Mercedes Benz in Indian manufacturing plants reached INR 3000 Crore. This can be attributed to the rising preference for locally manufactured luxury vehicles in India.
Integration of ADAS Features in E-SUVs
Advanced driver assistance technology enables vehicles to rely on advanced sensors and cameras to prevent accidental collisions or human errors to enhance pedestrian safety and comply with traffic rules in a better way.
The Development of Innovative HMI Displays
New e-SUV models feature unique human-machine interfaces that provide critical information such as vehicle speed, navigation route, and temperature and weather conditions to the driver, which guarantees a smooth journey.
Focus on increasing vehicle range
The increasing demand for mass e-SUVs presents exciting market opportunities. This includes delivering on consumer expectations of long vehicle range and optimum charging infrastructure along common routes.
India E-SUV Market Trends
During January-June 2024, Mercedes Benz delivered 9262 cars to Indian consumers, recording a year-on-year growth of 9%. The penetration of Mercedes’ electric vehicles in India has nearly doubled from 2.5% of total sales in 2023 to 5% in June 2024. Nearly 55% of all new vehicle sales in this period were SUVs, indicating significant consumer appeal for luxurious vehicles that provide on-road and off-road facilities.
India E-SUV Industry Segmentation
The EMR’s report titled “India E-SUV Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Breakup by Type
- Mid-Size
- Full Size
- Compact
Breakup by Propulsion
- Battery Electric Vehicles (BEVs)
- Plug-In Hybrid Electric Vehicles (PHEVs)
Breakup by Drive Type
- FWD
- RWD
- AWD
Breakup by Region
- North India
- East and Central India
- West India
- South India
India E-SUV Market Share
Based on region, the market is segmented into North India, East and Central India, West India, and South India. North India dominated the market, representing 82.1% of the overall market share in 2023. Over the forecast period of 2024-2032, South India is expected to grow at a CAGR of 22.7% as a result of the increasing adoption of electric vehicles.
Leading Companies in the India E-SUV Market
Major market players are expected to establish large-scale manufacturing operations in India to cater to the increasing demand for luxurious and technologically advanced e-SUVs.
Tesla Inc.
Tesla Inc. was founded in 2003 and is based in Texas (USA). It is engaged in manufacturing innovative clean energy products and modern electric vehicles that cater to consumers’ requirements of sustainable transportation.
BMW AG
BMW AG was founded in 1916 and is headquartered in Munich, Germany. It is the world’s leading manufacturer o...
Volkswagen AG
Volkswagen AG was founded in 1937 and is headquartered in Wolfsburg, Germany. It is the world’s leading manu...
Mercedes-Benz Group AG
Mercedes-Benz Group AG is headquartered in Germany and engaged in manufacturing luxurious passenger and commer...
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other major market players are BYD Co. Ltd., SAIC Motor Corp. Ltd, AB Volvo, Toyota Motor Corp., Nissan Motor Co. Ltd., and Hyundai Motor Co., among others.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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Key Questions Answered in the Report
The market is projected to grow at a CAGR of 20.80 between 2024 and 2032.
The different types of e-SUVs in the market are mid-size, full size, and compact.
The different segments based on the propulsion of e-SUV are battery electric vehicles and plug-in hybrid electric vehicles.
The different segments considered in the report are AWD, RWD, and FWD.
The different regions considered in the report are North India, East and Central India, West India, and South India.
The key market players include Tesla Inc., BMW AG, Volkswagen AG, Mercedes-Benz Group AG, BYD Co. Ltd., SAIC Motor Corp. Ltd, AB Volvo, Toyota Motor Corp., Nissan Motor Co. Ltd., and Hyundai Motor Co., among others.
Report Summary
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Type |
|
| Breakup by Propulsion |
|
| Breakup by Drive Type |
|
| Breakup by Region |
|
| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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