JOIN USLuxury car sales growth outpaced broader auto industry in 2022: Report
Sales of luxury cars in 2022 grew faster than the local automobile market in India, nearing the pre-pandemic peak amid India's quick economic revival.
According to a report by ET, 2022 saw the around 37,000-38,000 luxury vehicles sold, an increase of 50 per cent from 2021.
The figure, however, was just shy of the the all-time high of around 40,000 units in 2018.
In comparison, sales in the mainstream market grew 23 per cent year-on-year to 37.9 lakh units in 2022, with vehicles priced over Rs 10 lakh accounting for 41 per cent of sales.
In the luxury segment, too, demand was higher for pricier vehicles—models priced above Rs 1 crore.
Then growth in luxury car sales particularly benefited in the top three luxury vehcile manufacturers in India—Mercedes-Benz, BMW, and Audi—with both Mercedes-Benz and BMW posting record sales.
"We posted our best-ever sales to increase our share in the domestic luxury vehicle segment last year," Mercedes-Benz India MD Santosh Iyer told the publication, adding that the company sold 15,822 vehicles last year. The figure topped the company's previous record of 15,538 units in 2018, and was 41 per cent higher than 2021.
Growing momentum
The growing demand for luxury cares in India comes on the back of a healthy revival of the economy as well as strong corporate-earnings supported demand, Iyer told the publication.
ET also reported that the average age of luxury car buyers in India has come down over the last five years, with the average Mercedes Benz S-Class owner now being 38 years of age, as opposed to 45 years half a decade ago.
Additionally, participation of women and salaried professionals in the luxury car market in growing, with the two groups accounting for 15 and 12 per cent, respectively, of luxury car sales in 2022.
"We have seen phenomenal growth, with sales at the top end growing by 69 per cent last year. We expect the momentum to continue and grow sales in double-digits in the ongoing calendar year," the Mercedes-Benz India MD further told ET, commenting on strengthening demand.
Given the current growing demand for luxury cars in India, and the fact that India ranks high globally in terms of the number of billionaires, the potential for growth in the luxury car market is strong.