The passenger vehicle market is the segment of the automotive industry that includes the production and sale of cars, minivans, SUVs, and other vehicles intended for transportation of passenger and their luggage. This market is driven by consumer demand for reliable and efficient transportation, as well as new technologies and advancements in the automotive industry. The global passenger vehicle market is expected to grow significantly over the coming years, driven by increasing consumer demand for convenience, environmental sustainability, and safety features.
Moreover, the increasing disposable income, increasing preference for personal mobility, and government incentives such as tax exemptions on electric vehicles are expected to accelerate the demand for global passenger vehicle market. For instance, in January 2023, Tamil Nadu, India government announced 100% motor vehicle tax exemption for electric vehicles, registered in the state. This exemption is announced for the battery-operated vehicle registered between January 2023 to December 2025. Such initiatives are expected to promote the demand for electric and hybrid passenger vehicles.
One of the emerging trends in the passenger vehicle market is the rise of electric and hybrid vehicles. Hybrid vehicles are powered by a combination of gasoline and electricity, and they are becoming increasingly popular due to their fuel efficiency and environmental benefits. Hybrid vehicles are also becoming increasingly affordable, making them a viable option for budget-conscious consumers. In addition, many governments are offering incentives to encourage the purchase of hybrid vehicles, further driving the growth of this segment.
The increasing technological advancements in automotive industry such as adoption of Internet of Things and integration of ADAS is expected to propel the market growth. ADAS system uses onboard sensors to detect the environment around a vehicle and provide assistance to the driver to improve safety and reduce the risk of accidents. It also include lane-departure warning systems, blind-spot monitoring systems, automatic emergency braking, adaptive cruise control, and more. These systems provide drivers with improved awareness of their surroundings and help them make better decisions to avoid potential hazards.
By vehicle type: The passenger vehicle market is categorized by vehicle type; hatchback, sedan, sports utility vehicles, multi purpose vehicles, and others.
By vehicle class: The passenger vehicle market is segmented by vehicle class; compact, midsize, and premium and luxury.
By vehicle propulsion: The passenger vehicle market is categorized by vehicle propulsion; ICE, electric, and hybrid. With the increasing technological advancements in the automotive industry, electric and hybrid vehicles are gaining traction in the passenger vehicle market. A hybrid vehicle utilizes two or more different power sources to move.
From a regional perspective, Asia-Pacific is expected to witness growth in the passenger vehicles market. Factors such as increasing disposable income, improving infrastructure, and the growing number of young professionals in the region are driving the growth of the market. Another factor for the regional growth is extensive demand of automobiles. In 2021, the region accounted for around 48% share in total vehicle sales. Also, the region is becoming automotive hub, as most automobile companies have established their manufacturing plants in the region.
Competitive analysis and profiles of the major players in the passenger vehicle market, such as BMW AG, Daimler AG, Ford Motor Company, General Motors, Groupe Renault, Honda Motor Co. Ltd, Hyundai Motor Company, Nissan Motor Co. LTD, Toyota Motor Corporation, and Volkswagen AG. Other key players include AB Volvo, BYD Company Ltd., Kia Motors Corporation, and SAIC Motor Corporation Ltd. and others. Companies often focus on differentiating their product offerings to attract customers and gain market share. Product offerings may include features such as fuel efficiency, comfort, convenience, safety, and design. Automotive companies are launching new vehicles to cater the increasing demand for passenger vehicles in the global market.
In January 2023, Volkswagen Passenger Cars India launched a new sales and service touchpoint in Bhubaneshwar, India, that represents German-engineered products and services for Indian customers.
In March 2022, Ford Motor Company announced launch of all new electric passenger vehicles by 2024. The production is expected to start in 2023.
Passenger Vehicle Market Report Highlights
By Vehicle Type
By Vehicle Class
By Vehicle Propulsion
Key Market Players
Nissan Motor Co., LTD, Groupe Renault, Toyota Motor Corporation, BMW AG, Daimler AG, Ford Motor Company, Hyundai Motor Company, General Motors, Honda Motor Co., Ltd, Volkswagen AG