Luxury car sales in India hit record high in 2023
The Indian luxury car market grew at more than double the pace of the mainstream car market in 2023. The sales are estimated to have hit a new record high of around 47,000 units, representing a year-on-year growth of over 20%. Cars priced above Rs. 1.5 crore saw massive sales growth. In 2023, Mercedes-Benz reported its best-ever annual sales, selling over 17,400 units and achieving a 10% growth. BMW also experienced an 18% increase in sales to 14,172 units.
Demand is being fueled by a growing number of millionaires
The number of high-net-worth individuals (HNWIs) in India is growing rapidly, and these individuals are increasingly spending their money on luxury goods, including cars. There are reportedly about 3.5 lakh millionaires in India. Vikram Pawah, President of BMW Group, said that as the Indian economy expands, there is a rising number of top corporate professionals who are contributing to the luxury car segment. In 2023, BMW India recored its highest-ever annual sales (14,172 units).
Younger buyers are seeking luxury cars
The average age of luxury car buyers in India is decreasing. For s-Benz, the buyers' age for its top-of-the-line vehicles has dropped to 38 years from 45 years in the last five years. In India, the luxury car segment includes models such as the S-Class, GLS, Maybachs, and AMG models from Mercedes-Benz, the 7 Series, i7, X7, and XM from BMW, and the A8, Q8, RS5, and e-tron from Audi.
2024 may beat 2023's sales record
The Indian luxury car market will continue to grow in 2024, with sales expected to cross the 50,000-unit mark for the first time. Over 30 new models are set to launch in 2024. Luxury carmakers are not only introducing new models but also expanding into new markets and enlarging factories. Mercedes-Benz is close to reaching its full capacity of 20,000 units within a year or two and may consider expansion.
