INDIA'S LUXURY CAR market is speeding ahead, even as the broader auto industry faces chal-lenges. With key players like Mercedes-Benz and Škoda Auto Volkswagen India and its prestigious brands like Audi, Porsche and Lamborghini, driving growth, the demand for high-end vehicles is accelerating at a record pace. What was once considered a niche market, is now expanding rapidly, fuelled by changing consumer preferences, rising disposable incomes and better infrastructure.
India's luxury car market, defined as vehicles priced above Rs 50 lakh, remains a relatively small part of the overall auto industry-just over one per cent by the end of the first half (H1) of 2024.
However, this segment is growing significantly. According to Soumen Mandal, Senior Analyst at Counterpoint Research, "India's luxury car market accounted for just over one per cent of the total market by the end of H12024. However, it has been growing significantly over the past few years. In 2024, annual luxury car sales are projected to exceed 50,000 units, with a year-on-year growth of 56 per cent." Mandal highlights several factors fuelling this growth.
"The increasing number of high-net-worth individuals (HNIS), easier access to vehicle loans, and ayounger demographic's preference for luxury vehicles are expected to drive this growth, helping the luxury car segment outperform the overall passenger car market," says he. Mandal predicts that with lower car penetration in India compared to countries like the United States, China and Germany, the luxury segment could capture five per cent of the overall market by 2030.
Growing TEV Segment
This story is from the November 16, 2024 edition of BW Businessworld.
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This story is from the November 16, 2024 edition of BW Businessworld.
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