Luxury cars in India

In recent years the Indian consumers have shown strong inclination towards luxury products. Related to this context Indians shifted their choice from just simple to brand sake. From cars to accessories to high-priced homes, luxury items are flying off the shelves and the credit goes to the upcoming rich class class of the country. If we look at the sale of the luxury sports cars then the luxury car manufacturer Porsche have sold 215 cars in India in the quarter ended June, 57% more than the 137 units it sold in the same period last year.

In fact the luxury car segment has shown an excellent growth in the automobile industry of India. It is the reflection of the changing lifestyle of the affluent class in the country. Though, into India’s car market has always been a tough competition as well as a great challenge for the car manufacturers. Talking about the foreign luxury car manufacturers has face challenges in different way. Still the different globally recognized brands like BMW, Volkswagen, Audi, Mercedes Benz,etc. all has established themselves in the Indian auto market segment.

There are only 3-4% of the luxury car segment accounts of total car sales in India. But what lures the international majors is the fact that this segment is growing. Growth of the Indian economy has been faster than other emerging economies during recent times. Globally, India had the highest growth-rate (22.7%) of the population reached up to millionaire during the year 2007. India included 23,000 millionaires from 2006 to 2007, taking total figure to around 123,000 millionaires; the assets and treasures that are measured in US Dollars (Merrill Lynch Cap Gemini Report). However, during recession, the country noticed a decline of 31.6% in number of millionaires. However the post-recession recovery was much faster compared to other economies. Such figures are expected to grow up to 1,40,000 by the year 2010. In the number of millionaires in the country this robust growth, being one of the highest globally, it opens the path for further growth of the luxury car market.