The world’s largest car market: India overtakes Japan, but which country has the biggest drop?

While China remains the world’s largest auto market by far, the US has slipped a bit even as it retains the No. 2 spot in 2022 in terms of vehicle sales. Both countries led India in vehicle sales last year, but India posted the largest growth. In 2022, 26 million vehicles were sold in China while 13.8 million were sold in the US. In India, about 4.36 million units were sold, followed by 4.16 million in Japan – down 5% year-on-year.

Also read: Why Japan’s auto market shrinks to allow India to pass

Most of the other countries on the top 10 list have car sales falling in 2022 compared to their respective numbers in 2021. Germany is in fifth place while Brazil has pass the UK and France. South Korea and Canada complete the top 10 list. One of the biggest drops has happened to Italy, which has traditionally been in the top 10. And Russia’s invasion of Ukraine resulted in many home invasions. Global manufacturing packing and shipping out means sales plummet by 59%. Only 677,000 new cars were sold in the country, surpassing Turkey, Thailand, Australia and Mexico.

On the other hand, markets in Southeast Asia are on the rise. Indonesia, Malaysia, Vietnam and Thailand are fertile ground for car manufacturers.

It is expected that the top 10 list will fluctuate in 2023 even if the top three are expected to hold their respective positions. Demand in markets like Japan is likely to remain muted this year while component shortages – although easing – are still likely to wreak havoc on manufacturers’ plans in some markets.

(Note: The above data is based on preliminary sales numbers aggregated by Jato Dynamics)

First published date: January 30, 2023, 11:39 a.m. IST