Home Online Marketing Luxury car sales in India surge to record high – ET BrandEquity

Luxury car sales in India surge to record high – ET BrandEquity

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Luxury car sales in India surge to record high – ET BrandEquity

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<p>BMW, which achieved more than 50% market share, expects to grow in double digits in 2024, said Vikram Pawah, president, BMW Group India.<br /></p>
BMW, which achieved more than 50% market share, expects to grow in double digits in 2024, said Vikram Pawah, president, BMW Group India.

Luxury car sales in India scaled a record high of 42,731 units in 2023, up 20% year-on-year. Carmakers attributed the pickup in sales to a lifestyle change after Covid-19, making many younger professionals opt for high-end cars, and said the trend is expected to continue, citing rising disposable income levels. The growth potential of this segment is huge given the low penetration of a little more than 1%, they said.

“Last year, we recorded best-ever sales in the Indian market,” said Santosh Iyer, managing director at Mercedes Benz India, which plans to launch a dozen vehicles, including electric vehicles, in 2024.

BMW, which achieved more than 50% market share, expects to grow in double digits in 2024, said Vikram Pawah, president, BMW Group India.

The transition to electric vehicles will help accelerate luxury sales, according to experts. Strong payouts on employee stock options and corporate earnings coupled with a recovery in economic growth has resulted in a wider net of rich young achievers, they said.

India’s luxury car market is at an inflection point, moving from a phase of explosive growth to one of sustained, quality-driven expansion. While the immediate future might see a moderation in growth rates, the long-term outlook remains positive, driven by strong fundamentals and evolving young consumer preferences to pay a premium for luxury products, said Ravi Bhatia, president, Jato Dynamics.

Parameter/ year 2022 2023
Sales 35,588 42,731
Growth 32% 20%
Average weighted retail price Rs 74,22,656 Rs 80,62,709
Top 5 models by sales Mercedes E Class
BMW 3 Series
BMW X 1
Mercedes GLC
Mercedes GLE
BMW X1
BMW 3 series
Mercedes E Class
Mercedes GLA
Mercedes C Class

*Car makers include Mercedes, BMW, Audi, JLR, Volvo

Source: Jato Dynamics

  • Published On Jan 15, 2024 at 05:52 PM IST

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