Car sales set to hit record 3.8 million units in 2022


Car sales set to hit record 3.8 million units in 2022

Car manufacturers  are projected to end this calendar year with sales of 3.8 million passenger vehicle (PVs), exceeding the previous record by more than 400,000 vehicles, driven by sustained demand and improved component supplies that helped them step up production.

PV sales this year are set to increase by nearly a fourth - the fastest growth among major global economies - compared with 2021. Sales in the first 11 months of this year have already topped the previous annual record of 3.39 million units set in 2018. The estimated sales growth  for this year is 23%, which comes on top of a 27% expansion in 2021.

Wholesale numbers for passenger vehicles crossed the 300,000-mark for the sixth straight month this year in November, taking the cumulative tally to more than 2 million units for the first time in a six-month period.

Strong demand:  Demand is so strong that the challenge before the industry is to align production with that.

"The industry has added volumes of over 700,000 units in the last one year. This is massive if you compare with the growth rates being seen in other major auto markets globally," said a senior industry executive.

Given the buoyant demand in the market, major automakers are putting in place measures to increase their production capacity, which is expected to entail an investment of around Rs 30,000 crore over the next couple of years.

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