According to Nikkei Asia, India sales volumes are expected to increase further with the inclusion of pending fourth quarter sales figures for commercial vehicles.
As per Nikkei Asia report, India is now the third largest auto market in the world. Based on preliminary results, the Country L tops 4.2 million sold in Japan.
According to the Society of Indian Automobile Manufacturers, a total of 4.13 million new vehicles are expected to be delivered in India between January and November 2022, the report said. India's largest carmaker, Maruti Suzuki reported sales volumes on Sunday that totaled around 4.25 million units.
The country's sales volume is expected to increase further with the inclusion of pending sales data for the fourth quarter for commercial vehicles, the report said. Tata Motors and other automakers are yet to declare their year-end results.
In 2021, China will continue to lead the global auto market with sales of 26.27 million vehicles. The US came second with 15.4 million vehicles, followed by Japan with 4.44 million units.
Nikkei Asia said India's auto market has been volatile in recent years. Roughly 4.4 million vehicles were sold in 2018, but volumes fell to less than 4 million units in 2019, mainly due to the credit crunch in the non-banking sector that year.
When the Covid pandemic triggered a nationwide lockdown in 2020, vehicle sales fell further below the 3 million units mark. Sales are slated to reach 4 million units in 2021, but a shortage of automotive chips has hit growth.
Most of the new autos sold in India last year consisted of gasoline-powered vehicles, including hybrid vehicles, Nikkei Asia said, adding that electric vehicles were hardly present. Autos in the Indian market are seen less often than semiconductors sold in advanced economies.
According to Nikkei Asia, an easing of the automotive chip crisis provides a springboard for a recovery in 2022. Along with Maruti Suzuki, Tata Motors and other Indian automakers saw sales growth during the past year.
India is home to 1.4 billion people, and its population is expected to overtake China sometime this year and will continue to grow until the early 2060s. Income is also increasing.
According to British research firm Euromonitor, only 8.5 per cent of Indian households own a passenger vehicle in 2021, which means there is a lot of room for growth in sales. Amid trade deficit caused by petroleum imports, the government has started offering subsidies for EVs.
According to data from the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association, 4,201,321 vehicles were sold in Japan last year, down 5.6 percent from 2021.
Nikkei Asia said the Omicron pandemic and the lockdown in China greatly reduced production, leaving automakers unable to meet demand.
According to Nikkei Asia, Japan's auto sales peaked in 1990 at 7.77 million units, meaning sales have fallen by almost half from their all-time high. And the country's dwindling population offers little chance of a significant improvement in sales in the near future.
According to Nikkei Asia, in 2006 China overtook Japan to become the second largest auto market. In 2009, China overtook the US to become the world's largest market.
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