What’s driving the Record Luxury Car Sales in India?
Today we’ll delve into India’s thriving luxury car market, which saw unprecedented sales figures in 2023.
None of us have failed to notice the significant shift in our economy since COVID, specifically in the spending habits of Indians. India is splurging more on luxury items such as extravagant vacations, premium automobiles, high-end fashion, upscale residences, and more.
Have you noticed the streets getting a bit more glamorous lately?
Yes, that’s right, we’re talking about the sleek lines and purring engines of luxury cars that seem to be everywhere these days. Post-COVID, it appears that Indians are not just dreaming big—they’re driving big!
Today, let’s dive into this intriguing trend: the surge in luxury car purchases. Imagine cars that aren’t just vehicles but statements, each priced over Rs. 50 lakh.
Latest numbers
In 2023, we purchased luxury cars in record numbers, growing ~23% year over year, with Mercedes leading the pack.
Car makers link it to a post-COVID shift in lifestyle preferences. They point out that younger professionals are increasingly steering towards high-end vehicles due to robust corporate earnings.
The corporate world is evolving, and with it, the paychecks of many professionals like salaried workers, doctors, lawyers, and startup entrepreneurs are getting fatter. This boost in disposable income is fueling luxury spending in the country.
Mr. Dhillon, Audi India’s head, noted a significant demand surge from these groups. Audi also observed that 42% of its sales are now to customers under 40 years old.
A similar is witnessed by Mercedes-Benz India as well. The average age of E-Class and C-Class customers has decreased to 38 years and 35 years, respectively, compared to around 45 years a few years ago. This shift is accompanied by a doubling in the contribution of salaried professionals to total sales over the past two years.
The experience of BMW is also similar; the majority of its sales now come from consumers aged between 35 and 40 years old.
Latest Sales Volumes Reported by Mercedes-Benz, BMW and Audi in India
The runway continues to be very long
Luxury car manufacturers are excited about India’s demand potential, and why wouldn’t they be? India is the fastest-growing large economy and is home to ever-increasing numbers of billionaires
Have you seen more shiny new luxury cars cruising around your neighborhood lately? That’s no coincidence! The surge in sales we’ve been talking about is the engine behind this glamorous invasion, and it doesn’t look like it’s going to idle any time soon. With the way incomes are shifting in India, get ready for your streets to become a regular showcase of high-end automotive excellence. Buckle up—it’s going to be an exciting ride!
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