India Surpasses Japan To Become World’s Third Largest Auto Market

New Delhi: India surpassed Japan in auto sales in 2023. According to the latest industry data, India is now the third-largest auto market.

Sales of new vehicles in India totalled about 4.25 million units, topping the 4.2 million sold in Japan.

New vehicles delivered in India totalled 4.13 million between January and November 2022, according to the Society of Indian Automobile Manufacturers. Adding December’s sales volume reported on Sunday by Maruti Suzuki, India’s largest carmaker, brings the total to roughly 4.25 million units.

India’s automobile sales volume is expected to rise further with the inclusion of pending fourth-quarter sales figures for commercial vehicles, along with year-end results yet to be released by Tata Motors and other automakers.

In 2021, China continued to lead the global auto market, with 26.27 million vehicles sold. The US remained second at 15.4 million vehicles, followed by Japan at 4.44 million units.

India’s auto market has fluctuated in recent years. Roughly 4.4 million vehicles were sold in 2018, but volume dipped below 4 million units in 2019, mainly due to the credit crunch that hit the non-banking sector.

When the COVID pandemic triggered a countrywide lockdown in 2020, vehicle sales plummeted further below the 3-million-unit mark. Sales recovered in 2021 to approach 4 million units, but the shortage of automotive chips weighed on growth.

Only 8.5% of Indian households owned a passenger vehicle in 2021, according to British research firm Euromonitor, meaning there is plenty of room for sales growth. The government has started offering subsidies for EVs amid a trade deficit resulting from petroleum imports.