India's six largest passenger vehicle manufacturers have continued to consolidate their hold on the country's car market in 2024, collectively accounting for 92.1% of sales through August — up from 90.7% in the full calendar year 2023. The 1.4 percentage point shift, in a market approaching five million units annually, translates to roughly 60,000 units of market share moving away from smaller players.
Speaking on the latest episode of Autocar India's Deep Drive podcast, Hormazd Sorabjee and Ketan Thakkar noted that the six automakers — Maruti Suzuki, Hyundai, Kia, Tata Motors, Mahindra and Toyota — are each in the midst of large-scale capacity expansions.
Announced investments across the group total approximately ₹1.87 lakh crore, with planned capacity additions ranging from 1.7 million to 2.4 million units. Maruti Suzuki alone has added two plants this year, increasing capacity by half a million units, and has outlined a target of 3.5 million vehicles by around 2030, including exports. Hyundai is reportedly studying the feasibility of a third factory in India — in Gujarat or Maharashtra — as it targets 1.2 million units of domestic production.
By contrast, the brands outside this group — including Volkswagen, Skoda, Renault, Nissan, Citroen, Jeep and Stellantis — are collectively producing fewer than three lakh units for the Indian market annually, with multiple brands competing for that volume. Analysts note that at this scale, companies lack the resources to invest in new products or powertrains, further weakening their competitive position.
Structural Disadvantages Compound the Problem
A key factor cited for the underperformance of European brands is their reliance on turbocharged petrol engines, which represent a relatively small segment of the Indian market. High-volume sales in India are driven largely by naturally aspirated petrol engines, CNG variants and diesel — powertrains that Skoda, Volkswagen, Renault and Citroen have limited or no presence in. Maruti Suzuki, whose portfolio is built around naturally aspirated and CNG engines, remains the market leader with a share estimated at around 40%.
The top players' product decisions have also been more closely aligned with Indian buyer preferences. Kia's launch of a diesel variant of the Sorento in 2026 — despite diesel's declining long-term outlook globally — is one example of tailoring to local demand. Hyundai's upcoming large SUV offering with both diesel and strong-hybrid options reflects a similar approach.
Smaller Players Turn to Partnerships for Survival
Faced with limited scale and constrained investment capacity, several smaller automakers are pursuing alliances with Indian companies. Volkswagen and Skoda are in discussions for a joint venture with JSW Group, though the deal has not been finalised. Stellantis has engaged Tata Motors for product co-development. Honda, meanwhile, is reported to be outsourcing platform development to Tata Technologies, infotainment to TCS, and is in discussions to source engines from Horsepowertrain — a departure from its historical identity as an engine manufacturer. Honda currently produces around 100,000 vehicles annually in India from its Tapukara facility.
JSW MG Motor is the one outlier among the smaller players, maintaining volume momentum through electric vehicles, though it remains an unproven long-term force at scale.
Export Routes Offer Limited Relief
Exports have provided some cushion for manufacturers outside the top six, but the volumes remain modest. Attempts to access European markets have largely stalled. Skoda's Kushaq, developed specifically for India, was considered as a potential export candidate for Europe but that plan has been set aside, with regulatory compliance for Euro 7 standards and adaptation costs cited as barriers. European brands manufacturing in India have also lacked sufficient volume to build the cost base needed for competitive export pricing.
With capacity investments by the top six on track to push their combined share toward 95–98% by the early 2030s, the structural gap between market leaders and fringe players is expected to widen. For companies outside the dominant group, alliances and partnerships are increasingly the primary path to remaining viable in the Indian market.
Industry observers have noted that the Indian government expects more global competition to enter the market, with several Chinese automakers reported to be seeking entry — a development that could either intensify competition further or provide partnership opportunities for struggling brands.