The Indian market (PC+ LUV) declined by 13.3% in 2019
- The Indian car market (PC + LUV) abruptly stopped its growth in 2019, in a global context of markets decline, with a fall of 13.3% compared to 2018, at 3.8 million units against 4,4 million in 2018 and 4 million in 2017.
- However, this sharp drop of sales does not questions the development potential of the Indian market, which has a motorization rate that is still low compared to most major countries (around 100 cars per 1,000 inhabitants), a rate 1.5 to 2 times lower than in China. The Indian middle class is, however, half the size of the Chinese middle class, and the infrastructures development less dynamic suggests that the rate of Indian motorization at a middle term will never catch up with the rate of Chinese one, which is increasing sharply.
- In a context of a sharp decline, the most impacted carmakers are those who have a major footprint on the local market, meaning Suzuki and Tata Motors: Suzuki (with Maruti) lost 240,000 sales last year compared to 2018 and Tata Motors 160 000 sales. This has for consequence a decline of influence of these two carmakers at a global scale.
- Suzuki-Maruti remains however the undisputed leader of the Indian market in 2019, with a market share of 40% (stable compared to 2018), ahead of Hyundai-Kia (15%) which gains two points thanks to a stability of its sales, Tata Motors (14%) who lost two points and Mahindra (12%) who gained half a point. These four carmakers share alone 81% of the Indian market, while a dozen of others get the remaining 19%. SUVs represented 20% of the Indian market in 2019, against 18% in 2018.
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