India proudly holds its ground as the third-largest light vehicle market globally in 2023, marking a significant achievement in the automotive landscape. Despite a close competition with Japan, India managed to sell an impressive 4.11 million units, maintaining its status in the top ranks. Japan, making a resounding comeback, achieved a remarkable 14 percent growth in 2023, narrowing the gap with India. The Japanese market concluded the year just shy of 4 million cars, showcasing its resilience and competitive edge.
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Indian Car Market Registers Robust Growth Three Times in a Row
2023 marked the third consecutive year of growth for India, reaching a new peak. The automotive sector, mirroring mature markets, saw SUVs dominating with over 48 percent of total passenger vehicle sales. This growth trend positions India to retain its lead in passenger vehicle sales, contributing significantly to the global automotive landscape.
Shashank Srivastava, Senior Executive Officer at Maruti Suzuki India, highlights India’s steady growth fueled by a growing and young population, economic prosperity, and increasing motorization levels. He emphasizes India’s potential to maintain this growth trajectory, solidifying its position on the global stage.
Export Potential of India
While India maintains its sales prowess, it significantly trails Japan in light vehicle production. In 2023, India reported a 6.8 percent growth with 5.45 million units, according to S&P Global Mobility. The projections indicate India overtaking Japan in production by 2030, showcasing the nation’s determination to bridge the gap
Anticipating a surge in exports post-2025, industry experts foresee India crossing the one-million mark by the end of the decade. Major players like Maruti Suzuki, Hyundai, Kia, Renault-Nissan, and Volkswagen-Skoda are gearing up for expanded export operations, positioning India as a key player in the global automotive arena.
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S&P Global Mobility’s Insightful Predictions
Gaurav Vangaal, Associate Director at S&P Global Mobility, predicts India’s increased share in global industry volumes, reaching almost 8 percent. This projection, nearly doubling the pre-pandemic share, signifies India’s growing influence in the global automotive market.
As India continues its upward trajectory in global car sales, the automotive landscape anticipates sustained growth and increased global participation. With strategic investments, a dynamic market, and a robust export-oriented approach, India is poised to play a pivotal role in shaping the future of the automotive industry.
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