Most major passenger vehicle markets in the world registered a decline in sale in the previous year, China continues to be the biggest market with 21 million cars sold in 2019
As we have been repeating since last few months, the demand for new cars hit a low last year, with almost every carmaker recording a huge dip in their yearly car sales. India recorded a car sale of 29,62,100 units in the last year, which corresponds to a drop of 12.7 per cent from 33,94,700 units in 2018. With almost 3 million units sold last year, our country was the fifth largest carmaker in the world.
China, however, retained its numero uno status with a total sale of a whopping 2,10,45,000 units. However, what’s worth noting here is that in spite of being the largest market by volume, even China recorded a de-growth of 9.5 per cent on YoY basis. In 2018, 2,32,56,300 units were sold in China.
Even USA recorded a de-growth, albeit, a minor one. Last year, 1,69,65,200 cars were sold in the United States, which corresponds to a minor 1.5 per cent drop from 1,72,15,200 units sold in 2018.
| Region (+/-%) | 2019 | 2018 |
| 1. China (-9.5%) | 2,10,45,000 | 2,32,56,300 |
| 2. USA (-1.5%) | 1,69,65,200 | 1,72,15,200 |
| 3. Europe (EU + EFTA) (1.2%) | 1,58,05,800 | 1,56,24,500 |
| 4. Japan (-2.1%) | 43,01,100 | 43,91,200 |
| 5. India (-12.7%) | 29,62,100 | 33,94,700 |
| 6. Brazil (7.7%) | 26,65,600 | 24,75,400 |
| 7. Russia (-2.3%) | 17,59,500 | 18,00,600 |
| Total (-3.9%) | 6,55,04,300 | 6,81,57,900 |
It may be noted here that the biggest automobile markets in the world (read USA and China) have seen stagnation since last years. Hence, many OEMs are shifting their focus to developing markets like that of India and Russia. For reference, Russia was the seventh largest market for cars in 2019. It registered a sale of 17,59,500 units, a drop of 2.3 per cent from 18,00,600 units in 2018.
Unfortunately, things didn’t work as per the plan of carmakers as India saw a huge decline in demand last year. Much of this is due to poor policy management and high taxation structure.
Moreover, the uncertainty arising out of the transition from BS6 emission norms that took place this year took a toll in demand for cars in the previous calendar year. While the passenger vehicle sales were projected to cross the 35 lakh mark last year, it ended up below 30 lakh unit sales figure.