India’s automotive industry recently overtook Japan to become the third largest in the world after building a sizeable lead over traditionally strong markets such as the UK and Germany. India is currently only behind China and the United States on this list, and positive sentiment and strong demand are likely to keep the spirits going.
The Indian automotive industry is showing sustained growth, especially with increasing demand for passenger cars, tractors and commercial vehicles. The introduction of new models, a gradual shift to electric mobility and increased purchasing power after lockdown months are some of the factors that have added wind to the sails. The story contrasts with the story of countries such as Japan and the UK.
Consider the case of the UK. About 775,000 cars were built in the country in 2022, according to data from the Automobile Manufacturers Association compiled by AFP. This is his lowest level since 1956, down 10% from a year ago. Two manufacturers – Nissan and Tata-owned Jaguar Land Rover – account for more than half of all cars produced. The biggest challenge in production has been the shortage of semiconductors, and many other critical components from China have also created supply chain problems. It is said that there is something.
Next is Japan. The country’s new car sales in 2022 were the lowest in his 45 years. It wasn’t until 1977 that the industry recorded similar sales figures. Domestic car sales fell for he four years in a row. It is also unlikely that demand will recover in the near future. (Click here for the full report)
The momentum is led by China, the world’s largest car market, and the United States, where demand for larger vehicles remains strong. India is also likely to retain her No. 3 spot.
(with agency input)
First issue date: January 26, 2023, 10:14 AM IST