Luxury Market
Raygain Technologies Pvt. Ltd.
Indian Luxury Car Market – An Insight
The recent growth in the luxury car market in India is much more than mere market dynamics in a particular car segment. It is a reflection of the changing lifestyle of the affluent class in the country. In India, the luxury car segment (Average Price 25-30 Lakh) has been growing at an average rate of 20% or above during recent years; it seems to be least affected by the global financial crisis. During worst recession period when world was facing low market demand trends, Indian luxury car segment grew at 23% to 6,671 vehicles according to the Society of Indian Automobile Manufacturers (SIAM) despite a 0.5% decline in passenger car sales, to 11.04 lakh vehicles (April-December 2008 Report). But financial year ended March 2010 has shown growth of automotive sector up by 25% to 15.26 lakh vehicles. This indicates optimistic sign of recovery of sector. While the Indian auto industry is expected to grow at 17% to 19% on an average, sales of luxury and super-luxury cars are expected to grow exponentially. Luxury car segment accounts only for 3-4% of total car sales in India. But what lures the international majors is the fact that this segment is growing at 25%-plus (2009 sales), much higher than 15-17% growth registered by the small passenger car segment over the past few years. This growth of luxury car sales is driven majorly by increased wealth-creation within average Indian population and the desire of individuals to join the millionaire-club by flaunting their wealth. Growth of Indian economy has been faster than other emerging economies during recent times. Globally, India had the highest growth-rate (22.7%) of millionaire population during the year 2007. India added 23,000 millionaires from 2006 to 2007, taking total figure to around 123,000 millionaires; wealth as measured in US Dollars (Merrill Lynch Cap Gemini Report). However, during recession, the country noticed a decline of 31.6% in
Indian Luxury Car Market – An Insight
The recent growth in the luxury car market in India is much more than mere market dynamics in a particular car segment. It is a reflection of the changing lifestyle of the affluent class in the country. In India, the luxury car segment (Average Price 25-30 Lakh) has been growing at an average rate of 20% or above during recent years; it seems to be least affected by the global financial crisis. During worst recession period when world was facing low market demand trends, Indian luxury car segment grew at 23% to 6,671 vehicles according to the Society of Indian Automobile Manufacturers (SIAM) despite a 0.5% decline in passenger car sales, to 11.04 lakh vehicles (April-December 2008 Report). But financial year ended March 2010 has shown growth of automotive sector up by 25% to 15.26 lakh vehicles. This indicates optimistic sign of recovery of sector. While the Indian auto industry is expected to grow at 17% to 19% on an average, sales of luxury and super-luxury cars are expected to grow exponentially. Luxury car segment accounts only for 3-4% of total car sales in India. But what lures the international majors is the fact that this segment is growing at 25%-plus (2009 sales), much higher than 15-17% growth registered by the small passenger car segment over the past few years. This growth of luxury car sales is driven majorly by increased wealth-creation within average Indian population and the desire of individuals to join the millionaire-club by flaunting their wealth. Growth of Indian economy has been faster than other emerging economies during recent times. Globally, India had the highest growth-rate (22.7%) of millionaire population during the year 2007. India added 23,000 millionaires from 2006 to 2007, taking total figure to around 123,000 millionaires; wealth as measured in US Dollars (Merrill Lynch Cap Gemini Report). However, during recession, the country noticed a decline of 31.6% in