With the same population, India produces 6 times fewer vehicles than China
- China and India are now the two most populous countries in the world, with more than 1.3 billion inhabitants each, according to the latest census. However, the volume of their car fleets is very different, as in China, with a fleet of 348 million vehicles, meaning 258 vehicle per 1,000 inhabitants (a proportion half that of Europe or the United States), while in India, with a fleet of 54 million vehicles, there are 42 vehicles per 1,000 inhabitants (a proportion six times lower than that of China). This situation reflects a significant difference in terms of societal choices, purchasing power and automotive infrastructure.
- Last year, China produced 31 million vehicles (PC + LUV) while India produced just over 5 million, mainly for their local market. The gap between the two countries (number of vehicles produced in China divided by number of vehicles produced in India) which was 3 to 1 in 2005 (China = 3, India = 1) increased to 8.5 to 1 in 2020, but since then, this gap has gradually reduced to 6 to 1.
- China's development plans, growing middle class wealth, and infrastructure improvements—especially since 2005—have all contributed to the country's growth in motorization, while this trend has been much slower in India. It is clear that India will struggle to catch up with China in the coming years, if not decades. Closing the gap between the two countries to 3:1 would be a spectacular achievement for India.
- Furthermore, China has developed an acceleration strategy for electrification and artificial intelligence in the automotive sector, while India is still in its early stages. It can be added that China is a C/D segment vehicle market, while India is more of an A/B segment vehicle market.