Copyright FOURIN, Inc. 2023
2020 Automobile Market Forecast for India: Sales Drop 24% to 2.9 Million Units
The Indian automobile market is expected to shrink about 24% year-on-year to around 2.9 million units in 2020. The market is expected to shrink to below 3 million units for the first time since 2009 due to reduced production and sales triggered by the nationwide lockdown as a countermeasure against the new coronavirus, and the impact of the subsequent economic downturn.
To summarize the situation of the Indian automobile market in 2020, first of all, the complete suspension of automobile production and sales due to the nationwide lockdown from the end of March to May 2020 was the biggest factor in the market shrinkage. In April 2020, during the lockdown, the country’s emission regulations were raised as planned Bharat Stage 4 to Bharat Stage 6. The rise in vehicle prices that accompanied the stricter emission standard may have been a factor pushing down structural demand for automobiles, apart from the new coronavirus.