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According to the data, the Chinese market ranked first in the world with sales of 26.27 million vehicles in 2021, making it the world's largest market, followed by the United States with 15.4 million vehicles, and Japan ranked third with 4.44 million vehicles. It should be noted that although Japan ranked third, the sales performance almost halved compared with 7.77 million vehicles in 1990. According to the Japan Automobile Dealers Association (JADA) and the Japan Light Automobile Association (JMVA), new car sales in Japan in 2022 were 4201321, down 5% from 2021 and the lowest level in 45 years. The decline was mainly due to supply chain chaos caused by the COVID-19 epidemic and production cuts by chip shortage car companies.

According to the latest report of the Nikkei News, India will sell at least 4.25 million new cars in 2022, or surpass the Japanese market to become the third largest car market in the world. If there is no accident, India will surpass Japan in new car sales in 2022 and become the world's third largest car market for the first time.

The Indian market delivered 4.13 million new cars from January to November 2022, according to the Association of Indian Automobile Manufacturers (SIAM). New car sales in India in December have not yet been officially announced, but Maruti Suzuki, which has a large share of the Indian market, has released its December sales figures. Maruti Suzuki sold 139347 units in December 2022, and if you add in its sales, the Indian market has sold 4.26 million vehicles, and it is expected that new car sales in India will increase in 2022, together with sales from other car companies. It is understood that most of the new cars sold in the Indian market in 2022 are fuel-powered cars, and the proportion of pure electric vehicles is relatively small, and it is precisely because traditional fuel vehicles require fewer car chips that the tight supply of car chips in 2022 is not particularly large for new car sales in India, which is also the key reason why the Indian market may surpass the Japanese market to become the third largest automobile market in the world.

Compared with other countries, the Indian market is more complex. The concern of the automobile industry has previously reported in detail that although the Indian market is huge, auto companies such as Ford, Toyota, Honda, General Motors and Volkswagen have performed very mediocre after entering the Indian market. among them, due to successive losses, overcapacity and the growth of the Indian automobile market is not as expected. Ford Motor India announced in September 2021 that it would stop producing cars in India and close its manufacturing operations in Sanand in the western state of Gujarat and the southern city of Chennai. Ford has invested more than $2 billion in India, but the highest market share in India is only 2.5% and has been losing money. Ford had to close its Indian plant. In addition, Toyota, Honda, GM and Volkswagen, which entered the Indian market almost at the same time as Ford, are also very mediocre. Data show that by 2019, Toyota, Honda, Ford and Volkswagen had a total market share of 12.5% in the Indian market, less than 1/5 of Suzuki's sales in the Indian market, while General Motors announced its withdrawal from the Indian market and stopped selling cars in the Indian market in 2017.

In this context, Chinese car companies have entered the Indian market on a large scale, and the first one to enter the Indian market is the Mingjue brand of SAIC, and then Great Wall Motor, Foton Motor, Changan Automobile and BYD have all announced their entry into the Indian market. However, Great Wall's entry into the Indian market has not been smooth. GM sold its Tarigang plant to Great Wall in January 2020, but failed after two years of negotiations and adjustments without approval from the local government and relevant regulators.

In addition, BYD announced its entry into the Indian passenger car market on October 12, 2022. The relevant person in charge of BYD revealed that BYD India has considered building a second factory in India and will announce the relevant news in due course. BYD has already held a brand launch in New Delhi and unveiled its first high-end all-electric ATTO 3 (the domestic "BYD PLUS"), and the first batch of the ATTO 3 is scheduled to be delivered this month.

According to the data, the Indian car market grew by more than 12% from 2000 (750000) to 2010 (1.87 million), but the industry grew by only 3% from 2010 to 2020 (2.43 million). The cumulative sales of passenger cars in India's domestic market reached 3.08 million in 2021, an increase of 27% over the same period last year. It is the fourth largest car market in the world in 2021. According to statistics, in the 2020-2021 fiscal year, the cumulative sales of passenger cars in India's domestic market was 2.711 million, with an average annual sales of about 2.94 million in the past seven years. People in the industry believe that, "although the Indian automobile market is small, it is an important base for radiating South Asia, with an average annual export of about 650000 vehicles in recent years." India's potential economic growth and export prospects are the main reasons for Chinese car companies to enter the market.

According to statistics, India currently has a population of 1.4 billion, but in December 2022, the United Nations said that it expected India's population to surpass China in mid-April this year to become the most populous country in the world. the increase in population may bring new development opportunities for new car sales in the Indian market.

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