India Overtakes The United States & China To Become The Third Largest Vehicle Market In The World

According to a study that was published by Nikkei Asia, India became the third biggest car market in the world after surpassing Japan in terms of automobile sales for the first time in 2017. At least 4.2 million new automobiles were purchased in this country, surpassing the 4.2 million new automobiles that were purchased in Japan.

The Society of Indian Automobile Manufacturers estimates that 4.13 million new vehicles were supplied in India during the period beginning in January 2022 and ending in November 2022. According to sources from ANI, adding the sales volume for the month of December that was disclosed on Sunday by Maruti Suzuki, India’s leading producer, puts the total at about 4.25 million vehicles.

India’s sales volume is expected to rise even more when the pending sales numbers for the fourth quarter of commercial vehicles and year-end results from Tata Motors and other automakers are added.

In 2021, China maintained its position as the leader in the global automobile market with sales of 26.27 million automobiles. The United States of America stayed in second place with 15.4 million automobiles, and Japan came in third with 4.44 million units.

In India, over 4.4 million automobiles were sold in 2018, but that number fell to under 4 million in 2019. This decline may be attributed, in large part, to the credit constraint that plagued the non-bank sector in that same year. The lockout that was linked to COVID caused it to fall further below the 3 million thresholds in 2020. However, sales were able to revive in 2021 and surpass 4 million units, despite the fact that there was a scarcity of automotive chips, as reported by ANI.

According to Nikkei Asia, gasoline-powered cars, including hybrids, made up the majority of newly sold automobiles in India in 2017. The publication also said that electric vehicles seldom make an appearance in the country’s market. It is expected that cars made for the Indian market would have fewer semiconductors than cars made for more developed countries.

According to Nikkei Asia, the reduction in the severity of the automotive chip crisis in 2022 served as a launch pad for an economic comeback. During the course of the previous year, sales increased for a variety of Indian automobile manufacturers, like Maruti Suzuki, Tata Motors and others. India now has a population of 1.4 billion people, and its population is projected to surpass that of China somewhere during the course of this year. India’s population is also projected to continue expanding until the early 2060s.