India surpasses Japan to become 3rd largest auto market globally

India for the first time surpassed Japan in auto sales last year and moved up to third place globally, according to a Nikkei Asia report published on Friday. At least 4.25 million new cars were sold in the country, surpassing Japan's 4.2 million sales.  

As per the Society of Indian Automobile Manufacturers, the total number of new vehicles delivered in India between January and November 2022 is 4.13 million.

The total rises to about 4.25 million units when the sales volume of Maruti Suzuki for December is added, according to ANI.

The inclusion of pending fourth-quarter commercial vehicle sales figures as well as year-end results by Tata Motors and other automakers are expected to boost India's sales volume even further.

With 26.27 million vehicles sold in 2021, China maintained its lead in the global auto market. The US remained second with 15.4 million vehicles, followed by Japan with 4.44 million.

In India, approximately 4.4 million vehicles were sold in 2018, but in 2019, sales fell to under 4 million, primarily as a result of the credit crunch that hit the nonbank sector that year. Due to the Covid-related lockdown, it further fell below the 3-million mark in 2020. Sales did bounce back in 2021 to close to 4 million units, but growth was hampered by the lack of automotive chips, according to ANI.

 According to Nikkei Asia, the majority of new automobiles sold in India last year were gasoline-powered, including hybrid vehicles, with electric vehicles barely making an appearance. Automobiles marketed for the Indian market are thought to contain fewer semiconductors than those bought in developed nations.

According to Nikkei Asia, the relief from the automotive chip crunch in 2022 served as a launchpad for a recovery. Tata Motors and other Indian automakers experienced an increase in sales last year, joining Maruti Suzuki.

India currently has 1.4 billion inhabitants, and it is anticipated that this year or in the early 2060s, its population will surpass that of China. Incomes are also increasing.