June 25, 2024 05:32:40 booked.net

India’s High-End Car Market Accelerates on a Fast Track

In 2022, global luxury car brands like Rolls-Royce, Aston Martin, Lamborghini, Ferrari, Bentley, and Porsche reported record-breaking sales in India. They anticipate continued robust sales in the current year.

Multi-millionaires and billionaires, whose numbers have grown significantly, are increasingly acquiring handcrafted ultra-luxury cars. With the pandemic gradually receding, the “You Only Live Once” (YOLO) culture is propelling the super luxury car market forward.

Although relatively smaller compared to markets like the US and China, India’s super luxury car market is experiencing phenomenal growth, driven by a rising demand for high-end vehicles among affluent consumers.

Market research firm TechSci Research predicts that the Uber luxury car market (vehicles priced at Rs 2 crore and above) will grow from 450 units in 2022 to approximately 582 units in 2023, reflecting a 30 percent year-on-year increase.

Karan Checi, Research Director at TechSci Research, a management consulting firm, noted, “High import duties and taxes on luxury cars in India can make them quite expensive, but this has not deterred consumers who are willing to pay for the luxury and prestige associated with owning a super luxury car.”

Industry players are maintaining an optimistic outlook. Leading brands such as Rolls-Royce, Aston Martin, Lamborghini, Ferrari, Bentley, and Porsche achieved all-time high sales in 2022 and expect a strong performance this year.

Lamborghini Automobili, which began operations in India in 2007 with a single dealer, has sold a total of 400 units to date. The Italian super luxury sports car and SUV manufacturer experienced more than a 30 percent growth in 2022, delivering 92 cars in the Indian market. This surpassed their previous best sales record of 69 units in 2021. Before that, their best numbers were recorded in 2019 with 52 units sold.

Sharad Agarwal, Head of Lamborghini India, stated, “Previously, demand was mainly concentrated in metros, and Tier 1 & 2 cities contributed in single digits to our business volumes. Today, these cities contribute 25 percent of our business. Additionally, the demand used to come largely from third or fourth-generation business entrepreneurs a few years back, but now we are witnessing increasing demand from first- and second-generation business entrepreneurs.”

Lamborghini India is aiming to achieve sales crossing the century mark this year, building on its record-breaking performance in 2022. The company is also introducing its first hybrid car to the Indian market later this year, following its global debut in the first quarter of 2023.

Manolito Vujicic, Brand Director at Porsche India, reported that Porsche India had its best-ever sales performance in 2022, with a 64 percent sales growth over the previous year. The year saw a total of 779 retail sales, compared to 474 units in the previous year, marking Porsche India’s best result since 2014.

Bentley, which recently launched the Extended Wheelbase (EWB) edition of its Bentayga SUV, aims for a 40 percent sales growth in 2023, targeting 60 units, thanks to a new group of younger buyers who are contributing to their customer base.

In response to the growth potential of the ultra-luxury car segment in India, industry insiders expressed optimism. They believe that the segment is expanding, with the only hindrance being the high import duties, which could potentially impede further growth. However, they are hopeful that the government will consider rationalizing these duties in the future, which could pave the way for even higher sales, potentially reaching 1,000 units annually.