- India crossed production output of 5 million units in 2022
- India was the fastest growing market last year
| Light Vehicle Production (0-6 tonnes) | ||||
|---|---|---|---|---|
| Top 10 | Country/Region | CY 2012 (in million) | CY 2022 (in million) | CAGR last 10 years (in percent) |
| 1 | Mainland China | 18.2 | 26.1 | 4 |
| 2 | United States | 10.1 | 9.8 | 0 |
| 3 | Japan | 9.4 | 7.4 | -2 |
| 4 | India | 3.8 | 5.1 | 3 |
| 5 | South Korea | 4.5 | 3.7 | -2 |
| 6 | Germany | 5.5 | 3.6 | -4 |
| 7 | Mexico | 2.9 | 3.3 | 1 |
| 8 | Brazil | 3.2 | 2.2 | -4 |
| 9 | Spain | 1.9 | 2.1 | 1 |
| 10 | Thailand | 2.4 | 1.8 | -3 |
Consecutive double-digit growth for India
India was the fastest growing market in 2022 and no other country posted consecutive strong double-digit growth (over 20 percent) in the world. To be sure, in its earlier press note on November 1, 2022, S&P Global Mobility had already stated that India overtook Japan to become the third largest car market in the second and third quarters of 2022. Calling it a bronze medal position, the note stated that the race for third place was on. So it was almost a given that, with a record festive season, even on a full year basis, India would be ahead.
In spite of major disruptions, the Indian light vehicle market has swelled at a compounded annual growth rate of 3 percent in the last decade while most of the matured markets have registered a flat growth or a negative growth.
Brands see growth potential in India post Russia-Ukraine crisis
India is already the largest market for Suzuki outside of Japan. It also figures in the top 3 markets for Hyundai and Kia and Skoda Auto and was in the top 5 markets for Renault global in 2021. India's stakes have especially gone up post the Russia-Ukraine crisis.
The likes of Hyundai, Kia, Renault, Nissan and Skoda-Volkswagen have all exited Russia and the future growth potential lies in select few markets like India.
Skoda Auto global CEO Klaus Zellmer had previously told Autocar India that a big contribution to fulfilling the brand's global ambitions is coming from India. “We are well on track to more than double our sales in 2022. Our success gives us tremendous confidence for a long-term, sustainable journey in India, which is an integral part of all future strategy planning,” Zellmer said.
The Indian subsidiary of Europe’s largest automaker has committed €1 billion in the coming years as part of its 2.0 plans. Zellmer says Skoda’s current India line-up caters to only about 20 percent of the market, but also that he “aims to more than double that” in the mid-term.
Data Source: S&P Global Mobility.
Hormazd Sorabjee
Anurag Chaturvedi
