Luxury car sales in India 2024:Â In a PTI interview, Audi CEO Balbir Singh Dhillon said luxury automobile sales in India may surpass 50,000 units for the first time in 2024. His remarks are made at a time when the nation’s need for and sales of luxury cars are rising quickly. With an all-time high of almost 48,500 units, the luxury car category of the Indian passenger vehicle market expanded by an astonishing 28% in 2023 compared to 2022.Â
With 7,931 units registered in 2023, Audi recorded an 89% increase in retail sales over the 4,178 units registered in 2022. With 17,408 units sold in 2023, Mercedes-Benz, the leader in the sector, achieved its highest-ever annual retail sales figures in the nation, a 10% increase over the 15,822 units sold in 2022. The BMW and Mini models sold 14,172 units in India last year, as per BMW, a German luxury car manufacturer.
What’s driving up sales of high-end cars?Â
The luxury automakers anticipate that several reasons will allow the Indian market’s growth pace to continue. Young people with high aspirations are becoming more and more interested in luxury vehicles. This is in opposed to their interest in bland basic commuters or even mid-range vehicles. The abundance of cutting-edge technology-enabled features in premium cars stokes this desire even further. A wide range of assets are being introduced, and increasing spending funds and improving economic conditions contribute to this industry’s expansion. The automakers anticipate that these factors will also drive demand and sales of premium vehicles in 2024.
What does the CEO of Audi India think about Luxury car sales in India 2024?
In India, sales of luxury cars make up less than 2% of all passenger vehicle sales on a yearly basis. While the overall volume of passenger vehicle sales has expanded proportionately over the past ten years. In contrast, the market share has remained relatively stable despite the progressive expansion in this sector.
Regarding the potential for expansion of the luxury automobile market in India in 2024, Dhillon said that the industry may reach 50,000 units sold for the first time in 2024. This is because sales increased by around 10%, and disruptions in the global supply chain aren’t so severe too.
He added that if the segment’s growth hits double digits, the industry’s volume might eventually exceed one lakh yearly sales. “We could witness it happening if we surpass the 50,000 unit milestone this year. Also, if the growth stays double-digit in the upcoming years”.
Dhillon added that industry growth in 2024 might stay moderate, as opposed to the 28% recorded in 2023 over 2022. “This year, we anticipate the industry to grow as well. However, not in high double-digit, maybe lower double-digit,” he stated. He pointed out that the supply chain issues impeding sales in the January–March quarter are reason for weak growth prediction.
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