The epidemic led by Kovid-19 has affected the automotive industry worldwide. Without leaving any country untouched, it has changed the way we think, eat, live and move very well. But when one looks at the global vehicle sales data, India has again surpassed Germany to become the fourth largest automotive market.
According to the latest figures from OICA, the organization International des Constructions d’Automobiles – an international trade association made up of 39 national automotive industry trade associations – sold 3,759,398 vehicles in India in 2021, compared to 2,973,319 in Germany. This translates into a difference of about 26 percent.
Interestingly, this was in 2019 when India was ranked first and fourth and was expected to become the third largest by 2025. It is still possible for the country to reach this point, but that means surpassing Japan, where 4,448,340 units have been sold. 2021.
Opportunities in the Indian market are that car penetration in place of personal mobility is around 33 cars per 1,000, which is one of the losses compared to the developed market.
Then there is the demand for infrastructure and e-commerce driven commercial vehicles. Indeed, according to industry observers, the department is still witnessing its glorious days.
But on the other hand, if one looks at the ongoing challenges, especially the supply chain problems and the price of basic raw materials, then retail sales in the domestic market may not be as good as it could be.
It is also interesting to note that according to a recent search report by CRISIL, there is also a change in the placement of Indian passenger vehicles, which is faster than the growth in the premium vehicle segment (cars above Rs 10 lakh). Entry-level segment.
It is important to note that among the top 5 global markets, India is the only country to report double-digit growth (28%). China remains the largest market, but automobile sales were almost stagnant. Similarly, USAO reported 4 percent growth but was negative compared to 2019 ৷ At No. 3, the Japanese market has shrunk compared to both 2020 and 2019