India’s auto industry is no longer Wuxia Amon

India’s auto industry is no longer Wuxia Amon. In 2021, India’s auto sales will reach 3.083 million, second only to China, the United States and Japan , sold 400,000 more vehicles than Germany, which ranked fifth, and has transformed from the “automobile desert” of the year to the fourth largest automobile consumer in the world (calculated by country). Today, India’s automobile industry is compared with Before it was more mature, India’s EV market is expected to reach $17 billion in 2026, up from $5.47 billion in 2020, according to market tracker Mordor Intelligence.

Figure 1:January 2021-October 2022 Monthly car sales in India (unit: ten thousand)

Source: MARKLINES

Figure 2: Indian car production from January 2021 to October 2022 (unit: 10,000 units)

Source: MARKLINES

As the shortage of semiconductors eases and the impact of the epidemic subsides, the global auto market is gradually recovering, and the sales of major auto companies have all increased. India fell into a downturn last year due to the impact of chip shortages. At present, supply and demand continue to improve and have grown for six consecutive months. Passenger car sales (calculated by shipments) in October increased by 29% year-on-year to 291,113 units; production increased by 29% year-on-year %, reaching 330,989 vehicles. October ushered in the “Diwali” celebration of the Hindu New Year. Holiday business wars have made economic activities increasingly active. In September, driven by major cities before the festival and the relaxation of restrictions on the new crown epidemic, sales in the Indian auto market surged by 91.9% year-on-year. Although the sales of automobiles in October fell by 5.3% month-on-month, and the production volume fell by 11% month-on-month, just imagine, standing on such a large base in September, it is difficult for automobile production and sales to increase by a greater proportion in October. Taken together, the Indian auto industry is booming.

Table 1: Sales of automobiles by major OEMs in October and year-on-year changes

Source: Media reports

According to the news released by various companies, in the sales volume of major automakers in October, Maruti Suzuki far surpassed the second On the one hand, this confirms the phrase “Indians cannot live without Suzuki, just like India cannot lose New Delhi”, and on the other hand, it also highlights the popularity of Suzuki in the Indian market.

Traditional car exhausts pollute the environment, and people turn to environmentally friendly cars.Under the guidance of mobility and high-quality supply, the demand for new energy vehicles will continue to show a trend of rapid growth. New energy vehicles are in the “golden age” of rapid development. The three major markets of China, Europe and the United States may lead the global demand for new energy vehicles Sustained rapid growth. The Indian electric vehicle industry is also rapidly deploying. It is reported that Suzuki has the largest share of passenger vehicles in India and will launch a pure electric vehicle (EV) jointly developed with Toyota before 2025. In order to increase the production of pure electric vehicles, Tata Motors has decided to acquire the Indian plant of Ford Motor of the United States. Mahindra & Mahindra announced in May that it will purchase pure electric vehicle components such as motors from German Volkswagen. In addition, South Korea’s Hyundai Motor, which is rapidly expanding its share of passenger cars in India, also announced in December 2021 that it will invest 40 billion rupees in India in order to develop pure electric vehicles. India has a huge population base, and the per capita car ownership is very low. With the acceleration of urbanization, the purchase and replacement of cars will promote the rapid growth of this market. India will grow into a fertile ground for the auto market just around the corner.