India Autonomous Vehicles Market Research Report By Type (Fully Autonomous, Semi-Autonomous) and By Vehicle Type (Passenger Cars, Commercial Vehicles)- Forecast to 2035

India Autonomous Vehicles Market Overview

As per MRFR analysis, the India Autonomous Vehicles Market Size was estimated at 1.86 (USD Billion) in 2023. The India Autonomous Vehicles Market Industry is expected to grow from 3.5 (USD Billion) in 2024 to 45.8 (USD Billion) by 2035. The India Autonomous Vehicles Market CAGR (growth rate) is expected to be around 26.336% during the forecast period (2025 - 2035).

Key India Autonomous Vehicles Market Trends Highlighted

The India Autonomous Vehicles Market is undergoing substantial trends that are being driven by a combination of governmental support and technological advancements. The Indian government is actively advocating for the adoption of electric and autonomous vehicles in order to improve mobility and mitigate pollution in urban areas. The Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) scheme is one example of an initiative that motivates manufacturers to develop autonomous technologies. The market is primarily driven by the growing investment in research and development by both domestic and international companies. To meet the increasing demand for safer and more efficient transportation solutions in densely populated cities, automotive companies are concentrating on the development of advanced driver-assistance systems and the exploration of AI and IoT technologies.

The integration of autonomous vehicles with urban infrastructure has the potential to considerably enhance traffic management and public transport systems, particularly in the context of smart city initiatives. There are substantial opportunities to be explored in this area. Autonomous solutions have the potential to significantly alleviate the severe traffic congestion that major Indian cities are currently experiencing. In addition, there is an increasing interest in the utilization of autonomous vehicles for last-mile connectivity, which has the potential to improve the accessibility of public transportation in remote regions. Collaborations between automotive manufacturers and technology firms to accelerate the advancement of self-driving technologies are also being showcased in recent trends.

These partnerships are rapidly transforming the automotive landscape of India. The acceptance and adoption rates of autonomous vehicles will be accelerated across urban populations as a result of the incremental improvement in consumer perceptions of safety and reliability. The autonomous vehicle ecosystem in India is in the process of evolving, as evidenced by the ongoing pilot projects and test drives in various states. This has the potential to lead to future regulations and increased market participation.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

India Autonomous Vehicles Market Drivers

Government Initiatives and Policies Supporting Autonomous Vehicles

The Indian government is taking significant steps to foster the development and adoption of autonomous vehicles. The 'National Policy on Autonomous and Connected Vehicles,' introduced by the Ministry of Road Transport and Highways, emphasizes the potential of autonomous vehicles to enhance road safety and reduce traffic congestion. Recent government projections suggest that implementing autonomous vehicle technologies could lead to a reduction in road accidents by up to 50 percent.

Additionally, as per an announcement from the NITI Aayog, the government aims to establish a robust regulatory framework to facilitate the safe deployment of these technologies. Such initiatives are vital as traffic fatalities in India were reported at approximately 151,000 in 2021, according to the Ministry of Road Transport and Highways. This strong commitment to regulatory support showcases an accelerating shift toward the India Autonomous Vehicles Market Industry, further motivating stakeholders and investors in the sector.

Technological Advancements in Artificial Intelligence and Machine Learning

Rapid advancements in Artificial Intelligence (AI) and Machine Learning (ML) are driving innovation within the India Autonomous Vehicles Market Industry. Indian startups such as Ather Energy and Ola Electric are leveraging these technologies to develop advanced autonomous systems capable of reacting to real-world driving conditions. These technological developments are evidenced by a 25 percent annual increase in Research and Development expenditures in the field of AI and ML from 2020 to 2023, as supportive initiatives by the Indian government are creating fertile grounds for innovation.
These technologies are crucial for enhancing the decision-making capabilities of autonomous vehicles, thereby improving safety and efficiency in urban transportation.

Growing Demand for Enhanced Road Safety and Efficiency

The alarming rate of traffic accidents in India is a significant driver for the adoption of autonomous vehicles. With more than 150,000 fatalities recorded annually due to road accidents, the urgency for solutions that improve road safety has never been higher. The India Autonomous Vehicles Market Industry presents a promising opportunity to tackle this challenge. For instance, the introduction of autonomous vehicles could potentially lead to a 90 percent reduction in human error-related accidents, which account for the majority of road incidents. This potential reduction aligns with various global safety benchmarks and is supported by research from vehicle safety associations advocating for the introduction of smarter transport solutions.

India Autonomous Vehicles Market Segment Insights

Autonomous Vehicles Market Type Insights  

The India Autonomous Vehicles Market is experiencing significant growth, driven by advancements in technology and increasing consumer interest in safety and convenience. The Type segmentation of the market includes Fully Autonomous and Semi-Autonomous vehicles, each holding its importance in the overall landscape. Fully Autonomous vehicles, which operate without human intervention and are equipped with advanced sensors and artificial intelligence, represent the pinnacle of automotive innovation, promising to transform mobility in urban areas. This segment is significant not only for its potential to reduce traffic accidents caused by human error but also for its capacity to enhance mobility for disabled individuals and older adults, making transportation more inclusive.

On the other hand, Semi-Autonomous vehicles are playing a vital role in the transition to fully automated systems. These vehicles, which require some human interaction while utilizing automation for specific driving functions, are widely adopted by consumers today due to their ability to enhance the driving experience and provide features like adaptive cruise control and lane-keeping assistance. The India market recognizes the importance of these technologies in improving road safety, efficiency, and convenience. Government initiatives aimed at promoting electric mobility and technological advancements in Artificial Intelligence and machine learning serve as growth drivers in the domain. 

Despite the promising outlook, the market also faces challenges, such as regulatory hurdles and the need for robust infrastructure to support the deployment of autonomous technologies. Consumers’ perceptions regarding the safety and reliability of these technologies can also impact adoption rates. However, the significant investment from both established automotive manufacturers and technology firms ensures that the India Autonomous Vehicles Market is poised for continued evolution and growth, capitalizing on opportunities that arise with changing consumer behaviors and technological advancements.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Autonomous Vehicles Market Vehicle Type Insights  

The Vehicle Type segment of the India Autonomous Vehicles Market encompasses a range of applications that are critical to the evolving landscape of transportation in the country. As various technological advancements continue to unfold, Passenger Cars and Commercial Vehicles stand out as key verticals shaping market dynamics. Passenger Cars are gaining traction due to rising consumer demand for personal mobility solutions, propelled by urbanization and an increasing middle-class population, highlighting the shift towards convenience. Meanwhile, Commercial Vehicles play a vital role in logistics and goods transportation, making them significant contributors to economic growth.

The shift towards automation in these vehicles not only enhances efficiency but also aims to address road safety challenges and reduce traffic congestion in major urban centers across India. The Government of India is also promoting initiatives to support the development and adoption of these vehicles through various policies aimed at enhancing infrastructure and stimulating technological innovations. Overall, the segmentation within the Vehicle Type area reflects the robust potential of the India Autonomous Vehicles Market, fueled by evolving consumer preferences, government initiatives, and ongoing investments in Research and Development activities.

India Autonomous Vehicles Market Key Players and Competitive Insights

The India Autonomous Vehicles Market is emerging as a vibrant landscape characterized by rapid technological advancements and intense competition among various players. The market dynamics are influenced by rising urbanization, increasing demand for safety features, and supportive regulatory frameworks. Key stakeholders, including automotive manufacturers, technology firms, and component suppliers, are actively investing in research and development to create innovative and efficient autonomous solutions. As India aims to modernize its transportation sector, the competitive arena is populated by both established leaders and new entrants, each striving to carve out a significant share of this evolving market. As the race toward full autonomy continues, companies are focusing not just on the technology itself but also on strategic partnerships, collaborations, and scalable business models to ensure sustainability and profitability.

Bosch Chassis Systems has established a strong presence within the Indian Autonomous Vehicles Market by leveraging its extensive experience and technology in the automotive sector. The company specializes in braking systems and vehicle stability, which are crucial components in the development of autonomous vehicles. By integrating advanced safety features and electronic control systems, Bosch Chassis Systems enhances vehicle performance and reliability. This focus on innovation, combined with a robust supply chain and local manufacturing capabilities, positions the company favorably against its competitors. The strength of Bosch lies in its commitment to meeting local market needs, ensuring compliance with regulatory standards, and fostering partnerships with automotive OEMs to develop tailored solutions that enhance vehicle automation and safety.

Ather Energy stands out in the Indian Autonomous Vehicles Market as a pioneering electric vehicle manufacturer focusing on smart and connected two-wheelers. The company's key products include electric scooters equipped with advanced software for telematics and real-time data analytics, which align with the broader shift towards sustainable urban mobility. Ather Energy's strengths lie in its innovative design, user-friendly features, and commitment to quality, which resonate well with the tech-savvy population of India. The company has also expanded its market presence through strategic partnerships and collaborations aimed at enhancing charging infrastructure. Moreover, Ather Energy has engaged in meaningful mergers and acquisitions to bolster its technological prowess and distribution capabilities, thereby solidifying its position as a leader in the electric vehicle segment and reinforcing its commitment to automating urban commute solutions in India.

Key Companies in the India Autonomous Vehicles Market Include:

• Bosch Chassis Systems


• Ather Energy


• WABCO India


• Mahindra and Mahindra


• Ashok Leyland


• NVIDIA


• Aptiv


• Bharat Forge


• Bosch


• Intel


• Ola Electric


• CureMetrix


• Siemens


• Zenuity


• Tata Motors

India Autonomous Vehicles Market Industry Developments

Recent developments in the India Autonomous Vehicles Market include significant advancements by leading companies such as Mahindra and Mahindra, Tata Motors, and Ather Energy, focusing on electric and autonomous technologies. In September 2023, Tata Motors unveiled its plans to launch autonomous electric vehicles in urban areas by 2025, which is expected to reshape city transportation. 

Bosch Chassis Systems is investing heavily in R&D to enhance vehicle safety and autonomy features, marking a noteworthy development in the sector. Furthermore, in October 2023, WABCO India announced a collaboration with Siemens to improve the integration of electronic controls in commercial vehicles, which aligns with the industry's direction toward smarter transport solutions. Additionally, in recent months, the market has noted an upward valuation trend, driven by increased investments and stakeholder interest, particularly in the electric vehicle space, with Ola Electric gaining attention for its innovative approaches. 

Major happenings in the past couple of years, such as Ashok Leyland's strategic partnerships aimed at introducing autonomous trucks, highlight the rapid evolution of this market sector in India, reinforcing the country's pivotal role in the global autonomous vehicle landscape.

India Autonomous Vehicles Market Segmentation Insights

Autonomous Vehicles Market Type Outlook

• Fully Autonomous


• Semi-Autonomous

Autonomous Vehicles Market Vehicle Type Outlook

• Passenger Cars


• Commercial Vehicles

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	1.86 (USD Billion)
MARKET SIZE 2024	3.5 (USD Billion)
MARKET SIZE 2035	45.8 (USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	26.336% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Bosch Chassis Systems, Ather Energy, WABCO India, Mahindra and Mahindra, Ashok Leyland, NVIDIA, Aptiv, Bharat Forge, Bosch, Intel, Ola Electric, CureMetrix, Siemens, Zenuity, Tata Motors
SEGMENTS COVERED	Type, Vehicle Type
KEY MARKET OPPORTUNITIES	Regulatory support for innovation, Growing demand for mobility solutions, Investment in smart infrastructure, Awareness of safety and efficiency, Technological advancements in AI and sensors
KEY MARKET DYNAMICS	Technological advancements, Regulatory framework evolution, Consumer acceptance trends, Infrastructure development challenges, Competitive landscape dynamics
COUNTRIES COVERED	India