India overtakes Japan 3rd spot among largest vehicle markets

11 Jan 2023 CW Team

Due to pent-up demand and increased output by automakers, India has surpassed Japan to become the third-largest vehicle market after China and the US in 2022, selling more than 4.25 million vehicles.

The Society of Indian Automotive Manufacturers (SIAM) estimates that between January and November 2022, 4.13 million vehicles, both commercial and passenger, were sold in India. SIAM distributes data on commercial vehicles on a quarterly basis, thus figures for the segment's October- December quarter are awaited. Additionally, original equipment manufacturers (OEMs), such as Tata Motors (TML), now publish both wholesale and retail sales data on a quarterly basis. So, data from Tata Motors is anticipated.

India sold over 4.4 million vehicles in 2018, while less did so in 2019. (4 million). The figures fell below 3 million units in 2020 after Covid-19 struck. Sales did, however, pick up and reach the 4- million mark in 2021.

Production levels were hindered by a shortage of automotive semiconductor chips in 2021 and the first few months of 2022. Additionally, this resulted in a buildup of demand and lengthy waitlists for cars, making 2022 an especially prosperous year.

As India's population is soon likely to surpass that of China and car ownership penetration is still low at 8.5% of households, observers believe there is ample space for expansion in vehicle sales in India.

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