Affluent Indians drive up sales of luxury cars
On the other hand if we look overall car market, pulled down by mainline players like Maruti, Mahindra, General Motors and Hyundai, slips into the red for the second year in the race, Luxury car makers like Audi and Mercedes Benz have received the ultimate response in demand and returned with their best figures
In India the luxury car lovers do not ever worry, they love to get what they desire to never been concerned about any rising fuel prices and slower economy. As India’s mainline car market may be struggling but the luxury cars are influencing lots much high end customers toward them, in the last financial year luxury cars has seen the healthy demand which encourage the companies to work on new launch plans and to extend the product portfolio.
On the other hand if we look overall car market, pulled down by mainline players like Maruti, Mahindra, General Motors and Hyundai, slips into the red for the second year in the race, Luxury car makers like Audi and Mercedes Benz have received the ultimate response in demand and returned with their best figures.
Mercedes, which is on a revival phase in India after losing its top position, has recorded a 47% increase in sales as it sold 9,548 units in 2013-14 comparatively to 6,491 units year ago. Whereas Audi, has achieved the highest figure this time since its inception (in 2007) as the German Major sold 10,126 units. Though the growth rate was relatively modest at 8%.
What is fuelling this surge at a time when the overall sentiment is nervous? "These brands are targeting what I call the 'yummy' segment, or those who are young and upwardly mobile," says Abhay Gupta, CEO of Luxury Connect, which aids international luxury brands set foot in India.
Gupta says convenient financing options and "trading down" by the auto companies, who are lowering the threshold of car acquisition, are fuelling the surge. "So you have entry luxury brands like the BMW X1 and Mercedes A class”.
Joe King, head of Audi in India, says the company will continue to follow the "top down strategy" to win more customers. "In line with our top-down strategy, we will be launching the next big Audi — the A3 sedan — later this year. Globally, the Audi A3 has been a great success and we are confident that it is the right product for the Indian market."
Eberhard Kern, MD & CEO of Mercedes India. says“Mercedes plans to get models like GLA SUV, new C-Class and the CLA AMG. "We equate this interest level and penchant for owning the three pointed star with the growing aspiration level of affluent Indian customers. We have seen an upward trend in bagging customers, who are successful professionals and live a global lifestyle. This is a very positive trend and keeps us bullish about the long-term growth potential.
Wilfried Aulbur, managing partner at Roland Berger Strategy Consultants, says "In India there are enough people who can spend money and indulge themselves even in such difficult times. It is their way of making a statement that they have arrived in life."