AutoBeta(AutoBeta.net)01/15 Report--

The pattern of the global car market is changing. According to the latest Kyodo news agency, according to the Association of Indian Automobile Manufacturers, car sales in India were 4.725472 million in 2022, an increase of 25.7 percent over the same period last year, surpassing Japan for the first time to become the world's third largest car market after China and the United States. For comparison, Japan sold 4.2 million vehicles in 2022, down 5.6% from a year earlier and the lowest level in 45 years.

Data show that in 2022, India's passenger vehicles increased by 23.0% year-on-year to 3.792356 million, while commercial vehicles increased by 37.8% to 933116. Among them, passenger car brand Suzuki subsidiary "Maruti Suzuki" sold 1.57 million vehicles, which is the main source of passenger car sales in India, accounting for 41.39%.

In 2022, new car sales in India surpassed Japan to become the world's third largest car consumer market for the first time. For comparison, the cumulative sales of passenger cars in India's domestic market in 2021 was 3.08 million, an increase of 27% over the same period last year, making it the fourth largest car market in the world in 2021. China and the United States ranked first and second in the world with sales of 26.27 million and 15.4 million respectively, while Japan ranked third with 4.44 million. It should be noted that although Japan ranked third, the sales performance almost halved compared with 7.77 million in 1990.

New car sales in Japan also declined after entering 2022. According to the Japan Automobile Dealers Association (JADA) and the Japan Light Automobile Association (JMVA), new car sales in the Japanese market in 2022 were 4201321, down 5.6% from the same period last year, the lowest level in 45 years, and the global position continues to decline, mainly due to supply chain chaos caused by the COVID-19 epidemic and production cuts by car companies with chip shortages.

The main reason why new car sales in India will surpass the Japanese market in 2022 is also related to the supply chain. It is understood that the Indian market has the fastest growth in all the major automobile markets in 2022. Most of the new cars sold are fuel-powered cars, and electric vehicles account for less than 1%. It is precisely because the traditional fuel vehicles need fewer car chips, so 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 world's third largest automobile market. However, India has determined that electric cars will account for 30 per cent of total sales by 2030 and has approved a subsidy scheme for electric and hybrid vehicles.

Of course, compared with other countries, the Indian market, while large, is also more complex. 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). Including Ford, Toyota, Honda, General Motors, Volkswagen and other car companies are very mediocre after entering the Indian market. Among them, 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 Chennai in the southern city of Chennai due to years of losses, overcapacity and less-than-expected growth in the Indian auto market. Toyota, Honda, GM and Volkswagen, which entered the Indian market almost at the same time as Ford, are also very mediocre. Data show that as of 2019, Toyota, Honda, Ford and Volkswagen had a total market share of 12.5%. Less than 1/5 of Suzuki's sales in India, while General Motors announced in 2017 that it would withdraw from the Indian market and stop selling cars in the Indian market.

At a time when a number of car companies have announced their withdrawal from the Indian market, Chinese car companies have made a big foray into the Indian market. Shanghai Automobile Group Mingjue was the first car company to enter the Indian market, followed by Great Wall Motor, Foton Motor, Changan Automobile and BYD. However, Great Wall Motor failed because it could not get approval from the local government and relevant regulators. BYD also announced its entry into the Indian passenger car market in October 2022. BYD has held a brand launch and launched its first high-end pure electric ATTO 3 ("BYD PLUS" in China) in New Delhi, India. The first batch of ATTO 3 is scheduled to be delivered this month, and BYD will also consider building a second plant in India. 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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