China and India Now Account for 40% of Global New‑Car Sales

China and India together now hold 40.0% of global new‑car sales, a clear sign that the automotive centre of gravity is moving east. Global new‑car sales rose from 65.93 million in 2005 to 99.80 million in 2025. In the same period China’s sales jumped from 5.76 million to 34.40 million units, giving it a 34.5% share of 2025 sales, while India’s sales grew from 1.44 million to 5.52 million units, a 5.5% share. Production followed a similar path: worldwide output climbed from 66.47 million in 2005 to 96.38 million in 2025; China’s production increased from 5.72 million to 34.53 million units (35.8% share) and India’s from 1.64 million to 6.49 million units (6.7% share), together representing 42.6% of 2025 output.

Market Outlook

Suzuki estimates India’s passenger‑car market will reach 5‑6 million units by 2030, up from 4.34 million in FY‑2024. The International Energy Agency’s Stated Policies Scenario projects electric passenger cars and vans to make up about 80% of China’s 2030 sales but only around 15% in India. Analysts therefore see China chasing scale and rapid EV transition, while India focuses on expanding the overall market before full electrification.

Company Focus

Key players to watch are Suzuki, which dominates Indian four‑wheelers, Honda Motor in Indian two‑wheelers, and Yamaha Motor for two‑wheel demand. Profitability could be squeezed by falling local market shares, price wars, EV investment costs and volatile exchange rates.

Context

The shift mirrors broader economic growth in the two largest developing nations and underlines how rising incomes and urbanisation are reshaping global car demand.