Indian mobility market to double by 2030, surpassing US$ 600 billion

The Indian mobility industry is expected to double and surpass US$ 600 billion by 2030, a report by Google and Boston Consulting Group revealed. Emerging revenue pools such as electric, shared, and connected mobility are poised to contribute a staggering US$ 100 billion. India, the third-largest automobile industry globally, is poised for transformative changes in the near future.

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According to a joint report by Google and Boston Consulting Group (BCG), released at the six-day Bharat Mobility Auto Expo, the Indian mobility industry is on a distinctive growth trajectory and is expected to double, exceeding US$ 600 billion by 2030.

Think Mobility Report, stated that electric vehicles (EVs) are gaining traction, with one in three consumers considering an EV for their next purchase. Electric four-wheeler buyers prioritize advanced technology and exclusivity, while electric two-wheeler buyers value practicality and affordability.

Women, as highlighted by the report, now influence 52% of EV purchase decisions, surpassing their 38% influence in internal combustion engine (ICE) vehicles. Emerging revenue streams like electric, shared, and connected mobility could contribute US$ 100 billion to the sector.

The report noted that consumer preferences are rapidly shifting, driven by Gen Z and women, with digital purchase journeys and personalization becoming crucial. Self-drive rentals and subscriptions are growing, with 85% of renters open to purchasing rented cars. Gen Z is 2.7 times more likely than older generations to choose self-drive rentals. Additionally, one in four first-time car buyers is considering used cars, with one in three viewing pre-owned vehicles as lifestyle upgrades rather than cost-saving options.

Natarajan Sankar, Managing Director and Partner at BCG stated, “Already the third-largest automobile industry, India is on the cusp of transformative change over the next few years. Effectively harnessing global innovations in EVs, digital, and AI is more critical than ever for OEMs. To succeed, they must align their offerings with the distinct demands of Indian consumers.”

The Think Mobility report is based on comprehensive research across the four-wheeler and two-wheeler segments, incorporating insights from a survey of over 4,500 Indian consumers, direct engagements with leading auto manufacturers and suppliers, and proprietary data analysis.