While growth in the mass passenger car segment has stalled, the luxury segment has been racing ahead. India’s rising numbers of millionaires and well-heeled young professionals are driving this trend even as luxury car makers are creating new segments to generate demand and excitement
So even though the economy continues to stutter, decades of growth has spawned a new upper class with global tastes and aspirations that is driving the luxury car market expanding at 40% annually, say industry analysts and research firms. According to a Confederation of Indian Industry-AT Kearney report, India’s luxury market was worth $5.8 billion in 2011 and is expected to treble by 2015. A recent survey done by Frost & Sullivan says that “The Indian luxury car market will grow by six-fold by 2020”. According to the survey, the luxury car market is expected to record 300,000 units per year in sales by the end of this decade. “If we talk about the next decade, i.e. from 2013-2023, India would be a market for luxury cars. Growth seems to be the fastest in this segment, says Abdul Majeed, National Automotive Leader at PricewaterhouseCoopers.
Mercedes-Benz, which came to India in 1994, was the largest seller of luxury cars in India till a couple of years ago when fellow German rival, BMW, beat the company to the numero uno position in 2009. That year, Mercedes recorded 3,202 units in sales whereas BMW sold a good 3,587 units, topping the sales chart. Audi, which was then just making its presence felt in the Indian market, registered 58% of whopping yoy growth in 2009, selling 1,987 units. Since 2009, the competition has gotten more intense and scalding hot. The German players have been at each other’s throat, straining their muscles to outperform in the competitive luxury car market, which has grown thicker with the entry of newer players like Volvo and Jaguar Land Rover.
On one hand we have the entry level luxury brands like BMW, Audi, Mercedes and Volvo; on the other hand there are the mid-level luxury brands like Jaguar and Land Rover (starting from about Rs.5 million) and then there are the ultra-luxe brands, some of the biggest names in the sports car and super luxury segment, like Bentley, Lamborghini, Rolls Royce, Ferrari, Aston Martin, Maserati and Bugatti. The arrival of these big guns in the Indian market over the past two years has further redefined and segmented the luxury car market: So we now have the entry-level, mid-level, super luxury, sports cars and SUVs. Another key trend in this luxury space is the sudden upsurge in the entry level cars starting as low as Rs.2.2 million.
So even though the economy continues to stutter, decades of growth has spawned a new upper class with global tastes and aspirations that is driving the luxury car market expanding at 40% annually, say industry analysts and research firms. According to a Confederation of Indian Industry-AT Kearney report, India’s luxury market was worth $5.8 billion in 2011 and is expected to treble by 2015. A recent survey done by Frost & Sullivan says that “The Indian luxury car market will grow by six-fold by 2020”. According to the survey, the luxury car market is expected to record 300,000 units per year in sales by the end of this decade. “If we talk about the next decade, i.e. from 2013-2023, India would be a market for luxury cars. Growth seems to be the fastest in this segment, says Abdul Majeed, National Automotive Leader at PricewaterhouseCoopers.
Mercedes-Benz, which came to India in 1994, was the largest seller of luxury cars in India till a couple of years ago when fellow German rival, BMW, beat the company to the numero uno position in 2009. That year, Mercedes recorded 3,202 units in sales whereas BMW sold a good 3,587 units, topping the sales chart. Audi, which was then just making its presence felt in the Indian market, registered 58% of whopping yoy growth in 2009, selling 1,987 units. Since 2009, the competition has gotten more intense and scalding hot. The German players have been at each other’s throat, straining their muscles to outperform in the competitive luxury car market, which has grown thicker with the entry of newer players like Volvo and Jaguar Land Rover.
On one hand we have the entry level luxury brands like BMW, Audi, Mercedes and Volvo; on the other hand there are the mid-level luxury brands like Jaguar and Land Rover (starting from about Rs.5 million) and then there are the ultra-luxe brands, some of the biggest names in the sports car and super luxury segment, like Bentley, Lamborghini, Rolls Royce, Ferrari, Aston Martin, Maserati and Bugatti. The arrival of these big guns in the Indian market over the past two years has further redefined and segmented the luxury car market: So we now have the entry-level, mid-level, super luxury, sports cars and SUVs. Another key trend in this luxury space is the sudden upsurge in the entry level cars starting as low as Rs.2.2 million.
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