For the second year in a row, India beat Japan to remain the world’s third-largest vehicle market in 2023. Remember that in 2022, domestic car sales in India surpassed those of Japan for the first time, making it the third-largest market globally behind China and the US.
According to the data released by SIAM (Society of Indian Automobile Manufacturers), passenger car sales increased by 8% to 4.10 million units, while commercial vehicle sales were up by 5% to 9,78,385 units. In total, new car sales in India increased by 7% in 2023 to 5.07 million units.
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In comparison, Japanese car sales increased by 14% to 4.77 million units whereas, with a 12% year-on-year increase, China stood on top with over 25.18 million vehicles sold domestically, which including exports went past 30.09 million units in 2023. On the other hand, car sales in the USA increased by 12.5% to 12.86 million units, securing second place in global car sales.
The auto industry in India has experienced some fluctuations in recent years. In 2019, sales volume fell to below 4 million units from the about 4.4 million units sold in 2018, partly due to a credit crunch that impacted the nonbank sector that year. Sales fell even lower, below the 3 million-unit mark, in 2020 due to the COVID-19 pandemic and the nationwide lockdown it prompted. Sales bounced back in 2021, reaching close to 4 million units, but growth was hampered by a shortage of automotive chips. In 2022, the automotive chip crisis began to ease, which served as a launchpad for a comeback for most automakers.
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Additionally, car sales in India have been smashing records in recent months because of the country’s burgeoning economy and the strong consumer spending power. Nitin Gadkari, the Union Minister for Road Transport and Highways in India, has also recently claimed that India will become the largest vehicle market globally within the next 5 years.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
