Following a banner year for luxury car sales last year when several high-end car makers registered record sales, 2024 so far has also been a positive year for high-performance vehicles and high-end SUVs. Despite broader challenges in the automotive sector, luxury brands are celebrating impressive sales, thanks to shifting consumer preferences, increased wealth, and better roads to drive on.
In 2023, luxury car sales in India hit an all-time high of 42,700 units, surpassing pre-pandemic records. The demand for luxury cars in India is no longer limited to a niche audience. Brands like Mercedes-Benz, BMW, Audi, Volvo, and Jaguar Land Rover (JLR) have seen substantial growth, making luxury cars a familiar sight on Indian roads. Let’s take a look at some of the factors driving this growth.
How high-end carmakers are meeting India’s demand
The rising number of wealthy Indians is one of the primary drivers of this surge. As disposable incomes climb, more customers are willing to invest in luxury vehicles. This trend is accompanied by a shift in mindset toward valuing premium, top-end models. Santosh Iyer, CEO, Mercedes-Benz India notes, “Our TEV (Top-End Vehicles) portfolio has seen remarkable growth, with the Maybach line alone expanding by an impressive 125%.
It reflects a strategic shift as customers increasingly favour higher trims and exclusivity, with cars like the S-Class and Maybach capturing the hearts of eminent business and entertainment and sports personalities.
Audi India has also noticed similar trends. Balbir Singh Dhillon, Head of Audi India, shares, “India's luxury car market is booming, driven by a strong economy, rising disposable income, more high-net-worth individuals, and an automotive culture that favours premium, tech-driven vehicles,”
“Our flagship models, such as the new Audi Q8, Audi A8 L, Audi RS5 Sportback, Audi RS Q8, Audi e-tron GT, and the Audi RS e-tron GT, continue to witness strong demand. In 2023, this growing demand was reflected in a 40% surge in sales of our Performance & Lifestyle cars, highlighting sustained interest in high-performance vehicles.” he added.
Improved infrastructure has also encouraged more people to invest in luxury cars. The quality of roads in major cities has made it easier to enjoy the performance that these high-end vehicles offer. Additionally, dedicated race tracks are opening up across the country, where buyers can push these cars to their limits. This trend is also seen in BMW’s M series. The brand has experienced a 250% increase in sales of its M models, fueled by customers’ desire for high-performance experiences. “Our M series has grown ten-fold since pre-COVID times,” says Vikram Pawah, President, BMW Group India , attributing this to “a realization among people to live life to the fullest.”
Volvo Car India’s MD Jyoti Malhotra said “This year has been a year of challenges for the Indian automotive industry. Purchases are known to decline whenever there is an election and the same was true for 2024. Despite this and an extended monsoon, the luxury segment in the automotive sector did show growth,”
One of the major initiatives that have sustained the luxury segment during this period is that many luxury brands, and that includes Volvo India, have now a streamlined process for online purchase of cars. “This has reduced the inventory cost on dealerships and channel partners while giving them more opportunities for strengthening pre and post purchase customer experience,” he explained.
Owning a luxury car is not only about driving pleasure but also about social prestige. JLR’s strategic decision to locally manufacture its popular models has paid off, with Rajan Amba, Managing Director of JLR India, noting, “For JLR India, this year has all been about building momentum around the brand and business. And so, we are very pleased with our retail numbers with sales reaching 3,214 units, our historically highest ever H1. This is a 41% growth for Q2 and 36% for H1 over last year. This strong performance was driven by improved supplies and sustained demand for the iconic Range Rover and Defender models. The strategic decision to locally manufacture the Range Rover and Range Rover Sport, yielded an impressive result, with orders surging by 60%.”
In 2023, luxury car sales in India hit an all-time high of 42,700 units, surpassing pre-pandemic records. The demand for luxury cars in India is no longer limited to a niche audience. Brands like Mercedes-Benz, BMW, Audi, Volvo, and Jaguar Land Rover (JLR) have seen substantial growth, making luxury cars a familiar sight on Indian roads. Let’s take a look at some of the factors driving this growth.
How high-end carmakers are meeting India’s demand
The rising number of wealthy Indians is one of the primary drivers of this surge. As disposable incomes climb, more customers are willing to invest in luxury vehicles. This trend is accompanied by a shift in mindset toward valuing premium, top-end models. Santosh Iyer, CEO, Mercedes-Benz India notes, “Our TEV (Top-End Vehicles) portfolio has seen remarkable growth, with the Maybach line alone expanding by an impressive 125%.
It reflects a strategic shift as customers increasingly favour higher trims and exclusivity, with cars like the S-Class and Maybach capturing the hearts of eminent business and entertainment and sports personalities.
Audi India has also noticed similar trends. Balbir Singh Dhillon, Head of Audi India, shares, “India's luxury car market is booming, driven by a strong economy, rising disposable income, more high-net-worth individuals, and an automotive culture that favours premium, tech-driven vehicles,”
“Our flagship models, such as the new Audi Q8, Audi A8 L, Audi RS5 Sportback, Audi RS Q8, Audi e-tron GT, and the Audi RS e-tron GT, continue to witness strong demand. In 2023, this growing demand was reflected in a 40% surge in sales of our Performance & Lifestyle cars, highlighting sustained interest in high-performance vehicles.” he added.
Improved infrastructure has also encouraged more people to invest in luxury cars. The quality of roads in major cities has made it easier to enjoy the performance that these high-end vehicles offer. Additionally, dedicated race tracks are opening up across the country, where buyers can push these cars to their limits. This trend is also seen in BMW’s M series. The brand has experienced a 250% increase in sales of its M models, fueled by customers’ desire for high-performance experiences. “Our M series has grown ten-fold since pre-COVID times,” says Vikram Pawah, President, BMW Group India , attributing this to “a realization among people to live life to the fullest.”
Volvo Car India’s MD Jyoti Malhotra said “This year has been a year of challenges for the Indian automotive industry. Purchases are known to decline whenever there is an election and the same was true for 2024. Despite this and an extended monsoon, the luxury segment in the automotive sector did show growth,”
One of the major initiatives that have sustained the luxury segment during this period is that many luxury brands, and that includes Volvo India, have now a streamlined process for online purchase of cars. “This has reduced the inventory cost on dealerships and channel partners while giving them more opportunities for strengthening pre and post purchase customer experience,” he explained.
Owning a luxury car is not only about driving pleasure but also about social prestige. JLR’s strategic decision to locally manufacture its popular models has paid off, with Rajan Amba, Managing Director of JLR India, noting, “For JLR India, this year has all been about building momentum around the brand and business. And so, we are very pleased with our retail numbers with sales reaching 3,214 units, our historically highest ever H1. This is a 41% growth for Q2 and 36% for H1 over last year. This strong performance was driven by improved supplies and sustained demand for the iconic Range Rover and Defender models. The strategic decision to locally manufacture the Range Rover and Range Rover Sport, yielded an impressive result, with orders surging by 60%.”
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