Tuesday, July 16, 2024

India Surpasses Japan to Become World’s 3rd Largest Auto Market, Following China and US: Report

Global Auto Market: India Surpasses Japan in Auto Sales for the First Time

India Surpasses Japan to Become Third Largest Auto Market in the World

In a remarkable milestone for the Indian automotive industry, India has surpassed Japan in auto sales, becoming the third largest auto market in the world. According to Nikkei Asia’s recent report, India’s sales of new vehicles totaled at least 4.25 million units last year, exceeding the 4.2 million sold in Japan.

The Society of Indian Automobile Manufacturers reported that new vehicle deliveries in India totaled 4.13 million between January and November 2022. Adding December’s sales volume reported by Maruti Suzuki, India’s largest carmaker, brings the total to roughly 4.25 million units, as per ANI reports.

It is anticipated that India’s sales volume will continue to rise as the pending fourth-quarter sales figures for commercial vehicles are included, along with year-end results yet to be released by Tata Motors and other automakers.

China maintained its position as the leader in the global auto market in 2021, with 26.27 million vehicles sold. The US followed in second place with 15.4 million vehicles, while Japan trailed behind at 4.44 million units.

In 2018, India witnessed around 4.4 million vehicle sales, but the number dropped below 4 million in 2019 and further declined below the 3-million mark in 2020 due to the Covid-related lockdown. However, sales saw a recovery in 2021, reaching close to 4 million units, although growth was hindered by the shortage of automotive chips.

Gasoline-powered vehicles, including hybrids, dominated the new auto sales in India last year, with electric vehicles having a limited presence. Nikkei Asia mentioned that Indian market autos have fewer semiconductors compared to those sold in advanced economies.

With the automotive chip crunch easing in 2022, a rebound was seen in the industry. Maruti Suzuki, Tata Motors, and other Indian automakers experienced sales growth last year.

India, with a population of 1.4 billion, is projected to surpass China’s population this year and continue to grow until the early 2060s. As incomes rise in the country, the automotive industry is poised for further expansion and success.

Related Articles

Latest Articles

Most Popular