Passenger Vehicles Market Analysis

Passenger Vehicles Market Analysis

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Based on propulsion, the market is divided into ICE, electric, and hybrid. The ICE segment accounted for around 50% market share in 2022. The imminent launch of ICE propulsion vehicles featuring automatic transmission is fuelling segment growth. These vehicles combine traditional combustion engines with modern automatic transmission technology, catering to a broad consumer base. For instance, in September 2023, Jeep India introduced more budget-friendly 2WD versions of the Jeep Compass diesel-automatic. It is equipped with a 2.0-liter multi-jet turbocharged diesel engine sourced from Fiat, delivering 172 HP of power and 350 Nm of torque. This engine is paired with a 9-speed automatic gearbox.

Based on application, the market is divided into commercial and personal. The personal segment held around 60% market share in 2022 and is poised to register a significant growth over the forecast period. The segment is driven by a dual emphasis on customization and comfort. Consumers increasingly seek vehicles that offer customization to tailor their driving experience as per individual preferences. Simultaneously, the demand for enhanced comfort and convenience, coupled with advanced infotainment systems, underscores the importance of a seamless and enjoyable driving environment. These factors collectively contribute to the propulsion of the personal application segment, reflecting the evolving priorities of discerning consumers in the market.

Asia Pacific held a dominant market with a revenue of USD 713.5 billion in 2022 and is poised for significant growth over the forecast period. The Asia Pacific passenger vehicles industry is propelled by rapid urbanization and robust economic growth. As urban centres expand, there is a heightened demand for personal mobility, boosting the need for passenger vehicles. Concurrently, strong economic growth across the region stimulates increased consumer spending on vehicles. The expanding middle-class population, with rising disposable incomes, further amplifies this trend, creating a favourable environment for sustained market expansion in the Asia Pacific region.