Assessment of India's Luxury Car Market 2020

India is one of the largest passenger vehicle markets in the world and vehicle manufacturers both in the passenger and luxury segment see a huge potential for growth in the country. While the luxury car penetration level in the country is low, leading luxury car manufacturers are betting on the market’s potential, despite the impact of COVID-19. Launch of multiple strategically priced models at various price points coupled with smart financing schemes and a robust dealer network is boosting the sales of luxury cars in India.

Historically luxury car sales have been robust in cities such as Mumbai and Delhi but players are now targeting other cities with untapped potential. The compact luxury segment is upcoming in India and to tap the potential in a bid to tap into the potential Audi and Mercedes are looking to launch new models in the country at competitive pricing possible due to local assembly.

Due to the effect of the COVID-19 pandemic and the resultant nation-wide lockdown, in the period January-March 2020, approximately 7,000 luxury vehicles were sold in India, a decline of 35% year-on-year. Mercedes Benz India recorded a decline in sales by 38.5% to reach 2386 units, sales of BMW India in this period were 2482 units and Audi experienced approximately 30% decline in sales.

In 2020-2021 the luxury car makers are focusing to launch hybrid and electric vehicle. Indian Government plans to ease the import norm by eliminating restriction on price and compulsory local testing on luxury cars, bikes and electric vehicles. As per the proposed new rule, manufacturers can import 2500 units annually without any clearance test. This new law is expected to motivate the luxury car makers to launch new models in the segment.

Globally, once the Pandemic is over, it is expected that consumers will look for enhanced health, hygiene and sanitation features in the cars that they buy. Some aspects including in-built sanitization, advanced air-purification systems and anti-bacterial surfaces are likely to see interest from consumers. Players that are able to offer these and other innovative health features at an accessible price are expected to appeal more to consumers.

Why Purchase This Report?

The report highlights key dynamics of India’s luxury car market. The growing opportunity in the sector has been investigated along with capturing initiatives and performance of key players such as Volkswagen AG, Daimler AG, Bayerische Motoren Werke AG (BMW), Tata Motors Limited, General Motors Company, The Volvo Group and Porsche AG. The report contains the impact of COVID-19 on the sector and the opinions of industry stakeholders/experts.

Research Methodology

The publisher has conducted in depth secondary research to arrive at key insights. Data collected from key public industry sources and publications has been scanned and analyzed impartially to present a clear picture of the industry. All recent developments which impact the sector dynamics have been captured and used to support the research hypothesis.