Market Size of India Luxury Car Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.40 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Luxury Car Market Analysis
The Indian luxury car market studied was valued at USD 1.06 billion in 2021. It is expected to reach a value of over USD 1.54 billion by 2027, registering a CAGR of more than 6.4% during the forecast period 2022-2027.
With the spread of COVID-19, the sales of luxury cars were affected due to lower footfalls in the showrooms. Various automobile manufacturers were forced to temporarily shut their production as the supply chain was disrupted by the country-wide lockdown imposed by the government, which restrained the market growth.
Over the long term, as luxury car manufacturers are launching multiple models with various price ranges and user-friendly financing schemes, the demand for luxury cars is expected to rise in the country. Moreover, the demand for luxury SUVs has been growing rapidly in the country and is expected to continue during the forecast period, as they offer extra space and comfort. Major luxury car manufacturers like Audi, BMW, and Mercedes are planning to launch new luxury models in the country at a competitive price.
Besides these factors, the growing popularity of electric cars supported by active launches and future strategies of key players in the market are expected to further support demand in the market during the forecast period. The market is also supported by new entrants into this electric luxury space in India. For example, Jaguar ventured into the Indian EV space with its first all-electric car, I-PACE. Audi made its EV debut in India with the launch of the Audi e-tron and e-tron Sportback. Both the cars are available in the 55 Quattro variant, while the standard e-tron gets a lower-spec 50 Quattro trim too.
