 "Auto sales")
India has been the fastest growing among the world's 10 largest automobile markets this calendar year when compared to the pre-pandemic year of 2019, according to S&P Global Mobility forecast. India is the world’s third largest light vehicle (includes cars and light utility vehicles less than 6 tonnes) market, behind China and the United States.
According to the forecasting firm, auto sales in India are estimated to advance 36 per cent from 2019 levels to 4.8 million units in 2023. Auto sales in the US are expected to fall 9 per cent compared to the same period while China is expected to see a 2 per cent rise over 2019. The remaining seven markets are likely to show single to double-digit declines in 2023 over 2019, the forecast said.
Henner Lehne, vice president, of vehicle and powertrain group, S&P Global Mobility was quoted as saying by ET that auto sales are in recovery mode across global markets after bearing the brunt of the Covid-19 pandemic in 2020, the chip crisis and then the fall-out of the Russia-Ukraine war. The transition to electric vehicles has also led to a rise in production costs.
He added that India is sitting pretty as it bounced back quickly. While countries have shown signs of growth, they are not outperforming the pre-Covid year.
Auto sales in India reached a record high of 3.8 million units in the Financial Year 2022-23, surpassing the pre-Covid peak of 3.3 million units seen in FY19. Since FY23, passenger vehicle sales in India have been rising month-on-month. November sales reached a new high of 334,000 units, driven by the festive season. The demand is seen rising in FY24 but at a slower growth rate due to the higher base of FY23.
Demand for chips rose at an exponential rate in 2021 when Covid-19 restrictions were lifted causing a shortage. The vigorous demand also created capacity allocation problems.
Lehne stated that since the content of chips in India manufactured vehicles was lower as compared to the US and Europe, India enjoyed an advantageous position.
