Luxury cars are rampant in India. There are many who love luxury cars as the last six months saw record sales of luxury cars in the country. The segment witnessed record sales in the first half of 2023, led by carmakers such as Mercedes-Benz, BMW Group and Audi. German auto giant BMW sold 26,000 units across the country between January and June. After a great start to the year, all luxury car makers are expecting 2023 to be their best year ever in terms of sales.
The most sought after Mercedes-Benz
According to media reports, in the last six months, German luxury car maker Mercedes-Benz has registered its best ever sales in India. Between January and June, Mercedes-Benz sold 8,528 units, a jump of about 13 percent. Mercedes-Benz is one of the top luxury car manufacturers in India. Santosh Iyer, Managing Director and CEO, Mercedes-Benz India says that there is a very strong momentum at the moment and a lot of change towards luxury cars as well. So the demand is increasing and we see no reason to change that.
The BMW Group sold 5,867 units
BMW Group, one of Mercedes’ main rivals in India, recorded sales of 5,867 units during the period. This includes the Mini brand of luxury cars, including electric cars. BMW Group India President Vikram Pawah said that we will break records in the second half as well. It will get better as supply normalizes (from first half). If all goes well, it will be a record year for us. He said that the economy is stable and the demand is strong.
BMW tops luxury EV sales
According to a report, despite Mercedes having more number of EV (electric vehicle) models in its portfolio, it was BMW that emerged as the leader in the segment. BMW sells the iX SUV and the i4 and i7 sedans in the country. The iX electric SUV has received the highest number of buyers among all luxury EVs in India. The German auto giant now has nearly 50 percent market share in the segment
Audi sales double jump
Audio has almost doubled in sales in India. The German auto giant sold 3,474 units in the first six months of this year compared to 1,765 units last year. The luxury segment has sold around 21,000 cars in the last six months and generally H2 (second half) is better than H1. Audi India chief Balbir Singh Dhillon said this year should be better for the entire luxury car segment. Around 46,000-47,000 cars are expected to be sold this year.
21,000 cars sold so far in 2023
Around 21,000 cars were sold in the luxury segment this year and generally H2 (second half) is better than H1. Hence, it is estimated that the entire luxury car segment should account for around 46,000-47,000 vehicles this year. Which is definitely an all-time high, Audi India chief Balbir Singh Dhillon told PTI. The previous record was around 40,000 units in 2018, he said, then the luxury segment suffered in 2019 due to “economic conditions” and the pandemic hampered growth from 2020.
Record sales are expected in the second half
Similarly, BMW Group India president Vikram Pawah said, “We will break the record in the second half as well. It will be better (than the first half) with the supply normalizing. If everything remains constant, it will be a record for us. “The year will be. Demand in the economy is looking strong, product line-up is strong, new X5 launch has added to growth and response is strong.
Participation in Indian economy
He added that India’s strong economy, apart from new launches and models, is the reason behind the strong growth in the luxury segment. “We have a strong economy. Sentiment is positive, people’s incomes are rising. We are not facing the inflationary pressures that some Western countries are currently facing. For us, this is still a reasonable level. Yes, it is high but not dramatically high. Pawah said that Indian The economy and the Indian system have a solid foundation that gives us growth potential.
Demand for luxury cars continues to grow
Additionally, Santosh Iyer, managing director and CEO, Mercedes-Benz India, said other factors such as the stock market is at an all-time high and corporate India’s earnings are also registering strong growth, good bonuses and payouts and many companies are also buying cars. Iyer said that at the moment, there is a very strong momentum and a very conscious shift towards luxury cars. So the demand is going and we see no reason to change it.
By 2030, the share of luxury cars will be 2 percent.
Optimistic about the Indian luxury car market, Dhillon said, “We believe the medium to long-term growth story will continue, not only the overall car segment will grow, but the luxury segment will also grow. Today, we are around 1 percent and we believe by 2030 we will should reach 2 percent of total vehicles.” Asked if the luxury car segment in India is close to realizing its potential, Pawah said, “It is still a long way off, but we are moving in the right direction.” He argued that compared to developing or newly developed Asian economies where luxury car penetration is between 5 and 8 percent of the industry, India is still at 1 percent.
