The Indian Automobile Industry 2021 | Year In A Review

It’s December 2021 already, and it seems like yesterday we wrapped up 2020. Well, now is the time we do the same for 2021. 2021 was the year that witnessed a plethora of new car launches. New cars with state of the art technology in terms of safety and creature comforts. The Indian automobile industry also saw many ups and downs (mostly the latter) in 2021. So, let’s have a detailed recap of our country’s automotive industry in 2021.

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Vehicles In 2021

1. Turbo Petrol Era
   

   

   The trend of the turbo petrol engines picked up from 2020. But it is 2021 that harvested the success and demand of these downsized powerful engines. Earlier turbo petrol engines were a thing for just the driving enthusiasts. Now, with people becoming more aware, most people in search of a new vehicle want to taste a piece of this cake.

   Here is more on The Era of Turbo Petrol Vehicles

   If you are not mindful, turbo petrol engines were a by-product of the new BS6 emission norms. Now, almost all the cars in the ₹8 lakh – ₹20 lakh get at least one turbo petrol engine to choose from.

2. Powerful Engines and Automatic Transmission
   

   

   2021 marks the introduction of powerful engines in the relatively affordable car market. Now, most cars sub ₹20 Lakhs get a powerful powertrain. Taking into perspective, the most potent vehicle under ₹20 lakh is Mahindra XUV700, with a 2.0-litre turbo petrol engine. This motor is capable of generating a whopping 200bhp of max power.

   Also, Read Mahindra XUV700 Variants Explained

   All thanks to people who used to prefer mileage over engine power, now have the engine output among the top priorities in India. Along with that, like the international car market, the automatic transmission is gaining popularity. Kudos to the ever-growing traffic on the road. To have a hassle-free driving experience, people opt for auto boxes.

3. Automated driving trending
   

   

   All are aware that technology never remains constant and advances with each passing second. One of the new aspects of the upcoming new cars is ADAS. If you were not aware, ADAS stands for Advanced Driver Assistance System. As the name suggests, ADAS is a part of a vehicle’s active safety that uses many sensors and actuators to make the driving effortless (rather effort-free) and safe.

   Interesting read Is India ADAS Ready? Top ADAS-Equipped Cars You Can Buy

   One of the first vehicles in India to get ADAS was the MG Gloster. As of now, there are a hand full of carmakers that have ADAS in their car’s feature list; more are yet to join the movement.

4. Ever growing car feature list.
   

   

   In the market, be it now or a decade ago, there always have been cars that get the ‘luxury vehicle’ tag. But the amount of luxury sure is 10 years apart. What was luxury in 2011 is a common artefact in cars now. And with time, technology undoubtedly has become cheaper than it ever was.

   Here are 9 Car Features You Probably Didn’t Know About

   Hence, many features that were a part of luxury brands (like BMW, Audi etc.) are now available in mainstream cars. Meaning, majority of the vehicles in their top-end trims get a bucket load of features.

5. More value for money cars than ever (mostly)
   

   

   Nowadays, cars are more of a necessity than a luxury. So the carmakers in India are focused on manufacturing value for money cars. Meaning, the manufacturers are giving their all in when it comes to features and performance. Hold up! This doesn’t mean that the vehicles get expensive.

   Check out How SUVs Are Making Big Money For Indian Manufacturers?

   Automakers have their hands tied and try to offer the maximum bang for the buck. This also allows them to keep the competition going. Well, many cars in different cars still seem a little expensive but most out already have a value for money tag.
   

6. Electric vehicles are gaining pace.
   

   

   Not just in India, but these electric vehicles are gaining a reasonably large ground worldwide. Various carmakers in India already have or are redying an electric car for the market. It seems better late than never; people have started considering EVs as their mainstream vehicle.

   Here are the 20 Upcoming Electric Cars In India In 2022

   Okay, agreed these electric vehicles also possess some hidden pollution challenges. But in the long run (say 8-10 years), electric cars are greener than conventional vehicles. Moving on, if you have a set route for your daily commute, EVs just makes more sense.

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Automotive Market 2021

1. Market struck by semiconductor shortage.
   

   

   With the analysis of vehicles in 2021 done, let’s move towards the automobile market. It was 2021 that had many obstacles between the consumer and the carmaker. Including the ongoing global pandemic, the semiconductor shortage was among the most significant problems faced by the automotive industry.

   Informative: How Indian Car Manufacturers Can Battle The Semiconductor Shortage?

   Semiconductors are one of the critical components in a vehicle. All the car’s electronics make use of semiconductors to function. Hence, this had a more profound than expected impact on the overall market globally, not just automotive.

2. Overall negative yearly growth in automotive sales
   

   

   Irrespective of the pandemic situation in 2020, the Indian automotive industry saw a massive gain in vehicle sales compared to 2019. But in 2021, the market saw a huge decline in sales.

   Read to know more Car Sales In India In November 2021

   This is because of the limited production of vehicles. Reason? Chip shortage leading to a slight slump in the market. That said, we expect the condition to improve in the upcoming year.

3. Several plans announced to curb vehicular pollution
   

   

   Metro cities like Delhi and NCR breathe hazardous air thanks to several factors: including vehicular pollution. To tackle the situation, India’s transport minister Nitin Gadkari has proposed many plans to curb pollution in the entire county. Starting with the electrification of cars and other vehicles to introducing ethanol-based fuel called Flex-Fuel.

   Informative Read: Flex-Fuel And Flex-Fuel Engine Explained

4. Fuel prices went all-time high
   

   

   By far, the most concerning activity that we witnessed was the constantly increasing fuel prices. 2021 was the year that saw the fuel prices at their level best, and we are sure this is something we least want at this hour. Because of skyrocketing fuel prices, rates of different commodities also rose, hampering the budget of almost everyone.

   Check out the 10 Most Fuel Efficient (Best Mileage) Sedans In India 2021

And that was all about the Indian automotive industry in 2021. In the comment section, let us know what else you think hampered the market this year?

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