India now world's 3rd largest automaker

The best part about India's achievement is that when experts were saying that it could make it by 2026, it has done so much before that, thanks to Modi govt's Make-in-India initiative.

New Delhi, Jan 9: Prime Minister Narendra Modi's 'Make in India' mission has also brought in tremendous success for the automobile sector. Not just the favourable policies but the push to make them for the world has helped automobile companies sell more cars than ever. According to the latest report from Nikkei Asia, at least 4.25 million new cars were sold in the country.

In comparison to Japan, which has been a leading name in the auto sector for decades that sold 4.2 million cars, India's number is quite significant. This also makes India the third largest auto manufacturer in the world. The report from Nikkei Asia has also been corroborated by the Society of Indian Automobile Manufacturers (SIAM).

According to SIAM, the total number of new vehicles delivered in India between January and November 2022 stands at 4.13 million. The number did not have the numbers from Maruti Suzuki, the giant auto company. Once its numbers are added the total goes to 4.25 million units which is the number that Nikkei Asia has come up with.

Great recovery after Covid

India, like other countries, suffered a lot due to Covid and its automobile manufacturing sector suffered the most as several of the units had to be closed. Not just the Covid shutdowns but even after the pandemic slowed, the production slowed down due to weak demand. However, the remarkable recovery took place in 2022 as the numbers show.

Over the last couple of years the number seems to be in the same league, somewhat stagnant partially because of pandemic. For instance, 4.4 million vehicles were sold in 2018; however, the numbers fell to below 3-million in 2020. There was a slight jump in the demand in 2021 when the auto companies sold 4 million units.

Nikkei Asia report gives a mixed picture of the auto sector in India where demand for a range of vehicles has come up. For instance, the majority of new automobiles sold have been gasoline-powered but there has been a significant demand for electric vehicles.

China still leads the market by huge distance

Interestingly, China still is a leader in automobile manufacturing closely followed by the US. The data show that 26.27 million vehicles were sold in 2021 in China which is more than five times what India achieved. There is a huge gap between China and second ranked the US as the latter sold 15.4 million vehicles during the same period.

The best part about India's achievement is that when experts were saying that India could become the third largest automaker by 2026, it has done so even before that. Today the nation has become a hub for heavy vehicles manufacturing that includes tractors, buses, and heavy trucks thanks to the 'Make in India' mission.