The India Flexfuel Cars Market is estimated to be valued at US$ 611.8 Million in 2022 and is expected to exhibit a CAGR of 15% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Flexfuel vehicles have engines modified to operate on more than one fuel such as gasoline, ethanol or methanol. They provide advantages of reduced fuel costs and lower emissions. The need for lower carbon emission vehicles is driving demand for flexfuel cars in India.
Market key trends:
Growing awareness about vehicle emissions and their impact on the environment has emerged as a key trend in the India flexfuel cars market. Various government initiatives promoting use of biofuels and offering incentives for flexfuel vehicles have increased awareness among consumers. Recent campaigns highlighting how flexfuel cars can help reduce dependence on crude oil imports are encouraging more Indians to opt for these vehicles.
Segment Analysis
The India flexfuel cars market is dominated by the Compact segment due to increasing consumer preference for fuel-efficient vehicles in the country. Within the compact segment, the hatchback sub-segment holds the major share owing to low maintenance costs and suitable size for city commute. Flexible fuel vehicles provide better mileage compared to conventional vehicles, thereby driving the demand for compact hatchback flexfuel cars in India.
Key Takeaways
India Flexfuel Cars Market Size is expected to witness high growth, exhibiting a CAGR of 15% over the forecast period, due to stringent emission norms and rising fuel costs. Flexible fuel vehicles play a critical role in reducing dependence on crude oil imports.
Regional Analysis
The southern region dominates the India flexfuel cars market with a share of over 30%, led by states like Karnataka and Tamil Nadu. Strong economic growth and rising disposable income levels in this region support the sales of new vehicles. Moreover, the presence of major automobile manufacturers incentivizes consumers to adopt flexfuel cars in the south.
Key Players
Key players operating in the India flexfuel cars market are Maruti Suzuki, Hyundai, Tata Motors, Nissan, Renault, Mahindra & Mahindra, Toyota, Honda, Ford, and Volkswagen. Maruti Suzuki leads with a market share of over 20% owing to its strong product portfolio of flexfuel vehicles like Alto, WagonR, Baleno, and Dzire. Hyundai ranks second due to popular models like Grand i10, Santro, and Aura supporting flexfuel technology.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it