Home / News / India /  India a bright spot for car sales this year: Moody’s

NEW DELHI: Car sales volumes this year in India are expected to rise 12.5% and another 4% in 2023, Moody’s Investors Service said on Monday.

“India remains the bright spot for car sales. By 2023, we expect automotive sales in the country to recover to the highs touched in 2018. Volumes will climb 4% in 2023 after surging 12.5% in 2022, helped by the onset of the festive season at the end of September," as per a note prepared by the credit agency. “Meanwhile, the recovery in Japan (A1 stable) remains protracted. Sales will rebound in 2023 with supply chain improvement, especially on semiconductors, following a 5% decline in 2022 to 4.2 million units."

APAC auto sales were the strongest among major regions in 2022, rising 3.5%, driven by growth in China and India, Moody’s Investor Service said.

“Although margins will diminish, they will remain adequate in 2023. Weakening consumer sentiment, increasing production costs and a potential trend to cheaper vehicles with smaller engines and fewer features will weigh on margins," it said.

The Society of Indian Automobile Manufacturers (SIAM) in its latest report has said that there was significant growth across passenger vehicles following the domestic festival season.

As per the latest data, a total of 291,113 passenger vehicles were sold in October, which is almost 60,000 units more than the number in October 2021, but less than September 2022 sales, when 307,389 passenger vehicles were sold.

Segment-wise, 140,926 units of passenger cars were sold last month compared with 103,829 units in October last year. A total of 141,254 units of utility vehicles were sold in October versus 112,112 units in the year-ago period. Around 8,933 vans were sold in July, less than 10,412 units sold a year ago.

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