Car sales in India have exceeded pre-COVID-19 levels as consumer demand recovers and supply-side disruptions ease. According to the Society of Automobile Manufacturers of India (SIAM), vehicle sales rose by 27 percent to 3.9 million units in the fiscal year ending March 2023.
Vinod Aggarwal, Chairman of SIAM, stated at a news conference in New Delhi, “Overall demand is expanding, thanks to efficient supply chain management and better commodity volumes, especially for electronics, as well as reduced prices, although it’s still at a worrying level.”
The Indian automotive industry was severely impacted by the COVID-19 pandemic, with lockdowns and restrictions affecting production and sales. However, with the gradual lifting of restrictions and an improvement in consumer sentiment, car sales have rebounded and surpassed pre-pandemic levels.
The increase in car sales can be attributed to multiple factors. As the economy recovers and consumer confidence improves, more people are willing to invest in cars for personal transportation. Additionally, the availability of attractive financing options and discounts offered by automakers have also incentivized car purchases. The easing of supply-side disruptions, such as component shortages and logistics challenges, has further supported the recovery in car sales.
The Chairman of SIAM also highlighted the role of better commodity volumes, particularly for electronics, in driving the growth in car sales. The automotive industry relies heavily on electronic components for various functions, including safety features, infotainment systems, and connectivity options. Improved availability of these components has helped manufacturers ramp up production and meet the increased demand for cars.