India’s motor insurance market to hit $21.5b by 2030

Passenger vehicle sales reached record levels last year, increasing 6% YoY.

India’s motor insurance market is projected to grow from $13.19b in 2025 to $21.48b by 2030, at a compound annual growth rate (CAGR) of 10.25%, according to Mordor Intelligence. 

The market expansion is being fuelled by rising automobile sales, increased disposable incomes, and the broader digital transformation across the insurance sector.

India’s non-life insurance industry has grown by 16% this year, compared to 11% in the previous year, driven largely by demand in health and motor insurance. 

The country’s growing population, currently estimated at 1.38 billion, and rising aspirations for personal mobility have opened up a large pool of prospective customers for insurers.

The automotive sector's performance is a key driver of this growth. India recently became the third-largest light vehicle market in the world, overtaking Japan. 

Passenger vehicle sales reached record levels last year, increasing 6% year-on-year, with Utility Vehicles (UVs) accounting for much of the growth. 

Overall motor vehicle sales rose 23% from the previous year, with manufacturers such as Tata Motors, Kia India, and Toyota Kirloskar Motor posting strong gains.

Government initiatives like the FAME II scheme, the Production Linked Incentive (PLI) Scheme for Semiconductor Manufacturing, and

Advanced Chemistry Cell programmes are contributing to the expansion of the automobile sector, further supporting the motor insurance market.