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In A First, India Beats Japan To Become Third Largest Auto Market, Know How
Writer: Deepthi Rao
She is a postgraduate student pursuing Multimedia Journalism at Christ Deemed to be University. She believes in the power of storytelling and truth. "Do it with passion or not at all."
India, 9 Jan 2023 6:53 AM GMT
Editor : Jayali Wavhal |
She writes about gender issues, human interest, and environment.
Creatives : Jayali Wavhal
She writes about gender issues, human interest, and environment.
According to early estimates, India sold at least 4.25 million new automobiles, surpassing Japan's 4.2 million. With 26.27 million sales in 2021, China maintained its dominance in the global auto industry. The United States ranked second with 15.4 million sales.
In a first, India surpassed Japan in auto sales in 2022 to become the third-biggest auto market, as per a report that was released on Friday (January 6). According to early estimates, India sold at least 4.25 million new automobiles, surpassing Japan's 4.2 million. With 26.27 million vehicles sold in 2021, China maintained its dominance in the global auto industry. The United States retained the second position with 15.4 million automobiles.
The Society of Indian Automobile Manufacturers estimated that 4.13 million new automobiles were delivered in India between January and November 2022. Maruti Suzuki, the largest automaker in India, revealed December's sales volume on Sunday, bringing the total to almost 4.25 million vehicles.
The report released by Nikkei Asia also says that adding upcoming commercial vehicle sales data for the fourth quarter and the year-end numbers from Tata Motors and other manufacturers will likely increase India's sales volume.
India's Turbulent Auto Market
In the past years, India's vehicle market has fluctuated slightly. In 2018, over 4.4 million vehicles were sold, however, the volume fell below 4 million units in 2019, mainly owing to the credit constraint that affected the nonbank sector that year.
Vehicle sales fell below 3 million units in 2020 when the COVID-19 pandemic stirred a nationwide lockdown. Sales improved in 2021, approaching 4 million units, but a scarcity of automotive chips hampered growth.
Gasoline-powered cars, including hybrids, accounted for most of the new autos sold in India last year, while electric vehicles (EVs) hardly had any presence. There are fewer semiconductors in automobiles made for the Indian market than for those in advanced economies.
Nikkei Asia claims that the relief from the automotive chip bottleneck in 2022 served as a launchpad for a rebound, reports The Hindu. Tata Motors and other Indian automakers, including Maruti Suzuki, witnessed sales increase last year.
Declining Auto Sales In Japan
Reports from the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association claim that some 4,201,321 automobiles were sold in Japan last year. This was a 5.6 per cent decrease from 2021. The omicron outbreak and the lockdowns in China severely hampered output, making it impossible for automakers to satisfy demand.
Japan's vehicle sales peaked in 1990 at 7.77 million units, implying that sales had fallen by over half from the all-time high. Furthermore, the country's declining population suggests that a big comeback in sales is unlikely in the near future.
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