Booming Luxury Car Market In India
Luxury car market in India has grown at an accelerated pace in the past couple of years.Researches and studies have revealed that the luxury car market is growing at a steady speed of 25% per annum with more and more numbers of luxury cars entering Indian car market. Moreover, it is not only the luxury brands that are creating a benchmark in the Indian industry but also the affluent class people who are keen to splash cash for the cachet of exclusive cars.
Statistics show that in 2001-2002 there were nearly about 20,000 families in India with an annual income of more than Rs 1 crore and they used to spend some of their income on luxury cars. By 2005, the number of families earning more than Rs 1 crore rose to about 53,000. Even the World Wealth Report 2005-06 has recorded a growth of 19.3 percent in the number of high net-worth individuals in India in the year 2005. It is expected that by the end of 2010, nearly about 1,40,000 millionaires are expected to be found on Indian streets.
The key factors contributing to the growth of luxury car market are raising economy and IT boom. Rising economy has given way to more disposable income which people are splashing over luxurious and high-end cars. With the boom in IT industry, youngsters are earning higher packages which enable them to enjoy a joyful ride in their favourite luxury car. Apart from that easy availability of loan and good finance schemes have also pushed youngsters and middle class people towards expensive and luxurious cars. Even the Government of India is supporting the entry of luxury cars by formulating policies such as the relaxation of equity regulations and the reduction of import tariffs on automobiles. These policies have reduced the price tags of top notch luxury cars, which have eventually led to the growth of luxury car market in India.
Some of the most renowned car manufacturers designing luxury cars for the Indian market include BMW, Rolls Royce, Porsche, Daimler, and Bentley. These manufacturers have produced a number of luxury cars falling in the price range of Rs 50 lakh to Rs 5.5 crore. Luxury cars like Porsche Cayenne SUV, Bentley’s Arnage R, Mercedes Benz C-Class, Porsche Carrera, Bentley, Rolls Royce Phantom, BMW 5-Series are among the hottest cars in the luxury market. Infact, the entire range of Mercedes-Benz and BMW cars are at the highest peak. In a crowded luxury market, the essence of Audi cars is also there with strong footprints.
Apart from all the Mercedes, BMW, Porsche, and Bentley the entire range of Audi cars is also ground breaking. Audi Q7, Audi TT, and the proposed Audi R8 are a benchmark for the luxury segment. Hopefully, by the end of next year, Ferrari enthusiasts will also be able to buy one of the most expensive cars, Ferrari Modena, in India.
The luxury car market is on a continuous growth and is expected to become the world’s largest market for luxury cars.