Audi India Head Balbir Singh Dhillon estimates that approximately 21,000 luxury cars were sold in the first six months of the year, and expects the luxury car segment to reach a total of 46,000-47,000 cars in 2023, a new all-time high. The previous record of 40,000 units was set in 2018, but the luxury segment faced challenges in 2019 due to the economic situation and further setbacks caused by the pandemic from 2020 onwards.
BMW Group India President Vikram Pawah confidently predicts that the second half of the year will also break records, as supplies stabilize and demand remains strong. He attributes the robust growth in the luxury segment to new launches, strong product line-ups, and the positive economic conditions in India, where earnings are increasing and inflation rates remain reasonable.
Furthermore, Mercedes-Benz India Managing Director & CEO Santosh Iyer points out that the stock market’s all-time high and the strong growth of corporate India earnings have resulted in better bonuses and payouts, leading to increased luxury car purchases by companies.
Dhillon believes that the medium to long-term growth story of the luxury vehicles market in India remains intact. He predicts that by 2030, the luxury segment will account for 2% of the overall car segment, up from the current 1%.
While India’s luxury car penetration still stands at 1%, Pawah compares it to other Asian economies where the penetration rate ranges from 5% to 8%, indicating that India still has ample room for growth in the luxury car market.