India recently overtook Japan to become the world’s third largest auto market after China and the United States. Nikkei Asia reported that more cars were sold in India than in Japan in 2022 as a whole. This is a huge achievement for the South Asian country, where demand is growing exponentially across most segments. However, while the Indian auto industry is growing, the Japanese auto market has also had to contend with challenges.
According to the Japan Automobile Dealers Association and the Japan Light Motor Vehicle Association, domestic sales last year totaled 4.2 million units. According to the Indian Automobile Manufacturers Association, India is ahead, with 4.25 million vehicles sold.
Also Read: India Beats Japan to Become World’s 3rd Largest Auto Market: Report
Since Covid hit the world, the global auto industry is not yet in free waters, and some similar challenges have arisen. However, the impact on Japan is quite serious. For example, new car sales in the country in 2022 were the lowest in 45 years. It was in his 1977 that the industry recorded similar sales figures.
Domestic car sales fell for the fourth consecutive year. Suzuki and Mazda have shown their green figures since 2021, while Toyota and Mitsubishi are among the companies with the biggest declines. The performance of Japanese companies overseas is also not good, with combined sales of his six automakers – Toyota, Honda, Nissan, Mazda, Mitsubishi and Subaru – declining.
The near-term outlook remains uncertain, and it is not yet clear when the semiconductor shortage is likely to end and therefore whether demand may recover. Meanwhile, in closer countries, manufacturers remain buoyant as demand continues to be high despite long wait times for most of them.
First issue date: January 7, 2023, 10:12 AM IST