India Luxury Car Market | Share | Statistics | Forecast (2018 - 2023)
India Luxury Car Market - Segmented by Vehicle Type, by Price, by Drive Type, and By Ownership Type - Growth, Trends, and Forecast (2018 - 2023)

PUBLISHED

OCT 2018

India Luxury Car Market - Segmented by Vehicle Type, by Price, by Drive Type, and By Ownership Type - Growth, Trends, and Forecast (2018 - 2023)

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India Luxury Car Market Size

The India luxury car market is expected to register a CAGR of ~24% till 2023. Mercedes-Benz India and BMW Group India recorded their highest-ever annual sales in 2017 at 15,330 units and 9,800 units respectively. India has the world’s 12th largest High Net worth Individuals (HNI) population and has a huge potential for luxury cars.

With expansion in the education & realty sectors & increasing wealth of IT professionals, more consumers are aspiring to own luxury cars. Currently, the affluent class of the country is driving the demand of the luxury cars. The luxury SUV segment is growing at ~50%, whereas the luxury sedans are increasing 25 - 30%.

Growth of Luxury Car in Last Five Years in India

India is a huge market for vehicles and possesses very high potential for luxury cars segment. Whereas the luxury car penetration level in the country is low but leading luxury car manufacturers are betting on the market’s potential.

The launch of various strategically priced models at several price points coupled with smart financing schemes and a robust dealer network is aiding in boosting the sales of luxury cars in India. However, the year 2017 was not a smooth sailing for the industry as the market was recovering from the after-effects of the demonization in the first three months. But the remaining year happens to be the best year for the luxury car market in India where some of the companies enjoyed their sales growth they achieved over the preceding year. However, September 2017 GST rate revision negatively affected the sales. The tax does have an impact, but it has to do more with the wealth and prosperity of the masses for the luxury market to grow.

Top Players Market Share

Source: Statista/Mordor Intelligence

At present, the penetration rate of luxury cars in the country is ~1%. Luxury cars sales in the country grew at a rapid pace since 2012, with ~17% rise in sales in 2017, with Mercedes-Benz dominating the market. Mercedes sold 15,300 units in 2017 at a growth rate of 15.63%. Whereas the BMW sold 9,800 units at a growth rate of 24.66% and Audi sold 7,876 units in 2017.

Growing Demand for Pre-owned Luxury Vehicles

The pre-owned car market is witnessing a boom in the country, with the demand for luxury cars continually increasing.

Until few years, owning a luxury car used to be a dream for numerous consumers, owing to financial hurdles, but this is gradually changing, as the consumers can easily buy pre-owned luxury vehicles. Heavy depreciation in luxury car prices has made these vehicles, a preferred choice in the used car market.

As per OLX, pre-owned luxury vehicles priced over INR 15 lakh were the preferred choice among the consumers. OLX said, “With over 55,000 luxury cars (priced above INR 15 lakh) listed on OLX every month, supply for premium cars jumped by over four times in 2017.” As per the report, titled OLX Auto Note, top-end sedans and luxury cars added up to 38% of the total four-wheeler listings on the platform.

Brand Name

Model Year (Diesel)

Ownership

Price

BMW 5 Series

2013

Pre-Owned

~INR 30.5 Lakh

New

INR 50.5 Lakh onwards

Some major factors driving the growth of the pre-owned luxury cars are as follows –

  • High rate of depreciation value of the luxury cars
  • Fast growing base of young population
  • Growing disposable income of the consumers, along with rapid urbanization
  • Growing internet penetration in non-metros

Key Developments in India Luxury Car Market

  • April 2018: Luxury car makers Jaguar Land Rover, Audi and Mercedes-Benz say sales in India in the ongoing fiscal will slow down due to increased prices of vehicles after hike in import duty in the Budget
  • April 2018: Increase in prices of luxury cars to negatively impact sales in India
  • April 2018: Mahindra Launches Luxury Electric Car Brand Automobili Pininfarina.

Major Players in India Luxury Car Market

  •  Volkswagen AG
  •  Daimler AG
  •  General Motors Company
  •  Volvo Group

Reasons to Purchase India Luxury Car Market Report

  • Analyzing various perspectives of the market with the help of Porter’s five forces analysis
  • The vehicle type that is expected to dominate the market
  • The countries that are expected to witness the fastest growth during the forecast period
  • Identify the latest developments, market shares, and strategies employed by the major market players
  • 3-month analyst support, along with the Market Estimate sheet (in Excel)

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1. Introduction

                1.1 Scope of the India Luxury Car Market 

                1.2 Executive Summary of India Luxury Car Market 

2. Research Methodology

                2.1 Study Deliverables

                2.2 Study Assumptions

                2.3 Analysis Methodology

                2.4 Research Phases

3. India Luxury Car Market Insights

                3.1 Industry Attractiveness - Porter's Five Forces Analysis

                                3.1.1 Bargaining Power of Suppliers

                                3.1.2 Bargaining Power of Consumers

                                3.1.3 Threat of New Entrants

                                3.1.4 Threat of Substitute Products and Services

                                3.1.5 Degree of Competition

                3.2 Technological Trends

                3.3 Regulatory Analysis

4. Market Dynamics

4.1 India Luxury Car Market Drivers

4.1.1 Growing Demand for Pre-owned Luxury Vehicles

4.1.2 Other Drivers

4.2 India Luxury Car Market Restraints

4.2.1 Implementation of GST Hindering the Growth Rate of the Market

4.2.2 Other Restraints

4.3 India Luxury Car Market Opportunities

4.3.1 Make in India Campaign Boosting the Development of Manufacturing Plants

4.3.2 Other Opportunities

5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)

                5.1 India Luxury Car Market By Vehicle

                                5.1.1 Hatchback

                                5.1.2 Sedan

                                5.1.3 SUV

5.2 India Luxury Car Market By Price

5.2.1 INR 20 Lakhs – 50 lakhs

5.2.2 INR 50 Lakhs – 80 Lakhs

5.3.2 Above INR 80 Lakhs

5.3 India Luxury Car Market By Drive Type

5.3.1 IC Engine

5.3.2 Electric Vehicle

5.4 India Luxury Car Market By Ownership

5.4.1 New Car

5.4.2 Pre-owned

6. Future of the India Luxury Car Market 

7. Competitive Landscape of India Luxury Car Market 

                7.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements

                7.2 Market Share Analysis**

                7.3 Strategies Adopted by Leading Players

8. Company Profiles (Overview, Financials**, Products & Services, Recent Developments, and Analyst View)

8.1 Volkswagen Group

8.1.1 Audi

8.1.2 Porsche

8.1.3 Bentley Motors Ltd

8.1.4 Lamborghini

8.1.5 Skoda

8.2 Daimler AG (Mercedes-Benz)

8.3 Bayerische Motoren Werke AG (BMW)

8.3.1 Rolls-Royce Holding PLC

8.3.2 MINI

8.3.3 BMW

8.4 Jaguar Land Rover (Owned by Tata Motor Limited)

8.5 Volvo Group (owned by Geely)

8.6 Ford Motor Company

8.7 Toyota

8.8 Renault-Nissan Alliance

8.9 Fiat Chrysler Automobiles

8.9.1 JEEP

8.10 Isuzu

*List not Exhaustive

9. Disclaimer

**Subject to Availability on Public Domain

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