CHENNAI/INDIA, March 17: India luxury car market has grown eight times in the last seven years from 4,000 units in 2007 to 33,000 units in 2014. But, say top luxury car experts, the number is expected to hit 100,000 units by 2020.
Like other high-growth emerging markets such as Brazil, Mexico and Russia, the luxury car market in India too has shown stronger growth than the mass market segment, which has been buffeted by the slowdown in 2012 and 2013. Despite the lean period, top luxury brands like Audi and Mercedes Benz have grown at double-digit pace, making India one of the “strategic markets” in Asia.
Said Eberhard Kern, MD, Mercedes Benz India: “We are bullish on the potential of the Indian market and estimate that the current luxury car industry volumes in India could cross 100,000 units by 2020.” This despite the fact that the Indian luxury car market has grown by merely 1,000 units in 2014. Others like Audi India MD Joe King believes that the Indian luxury car market will “at least double” by 2020 and should actually do much better than that. “The market has grown eight times in the last seven years,” he added. “Typically, the premium segment displays a better dynamic than volume segment in many BRIC markets including India.”
A chunk of this future growth could come from markets miles away from the metros. Said Philipp von Sahr, president, BMW Group India: “Along with the metropolitan centres, we foresee growth potential among the young achievers, predominantly from tier 1 and tier 2 cities, which have a dynamic attitude and are technology savvy.”
TIMES OF INDIA