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Luxury Car Market: Luxury Car Makers See Accelerating Demand for Premium Models in India

Luxury automakers – Mercedes-Benz, Audi and BMW – are witnessing an acceleration in demand for their high-end models in India, leading to longer waiting times amid supply constraints, senior officials say. business managers.

They are seeing higher growth from the premium segment compared to the volume segment of their respective portfolios.

“Over the last two months I would say the trend started from last year, the demand on C and D segment which is cars above Rs 70-75 lakh, the growth of this segment is even more than the growth volume segment for us,” Balbir Singh Dhillon, head of Audi India, told PTI.

He added, “People in general, who are able to buy these sets of cars (industrialists, sports personalities and Bollywood celebrities) are really showing up and spending to buy luxury goods and the demand is really very good.”

Citing the example of Audi’s e-tron electric car, Dhillon said: “We are selling these cars in the Rs 1 crore-plus category. They are sold out before they even arrive in India.

“Partly that’s also because there are definitely supply constraints, but I will still say that whatever we get there is all pre-sold. So there’s a very positive demand to know s it’s an e-tron or a Q8 (SUV).”

Wait times for these cars have increased, he said, adding that “what was waiting for one month to two months will now reach four to six months”.

Expressing similar views, Mercedes-Benz India Managing Director and CEO Martin Schwenk said: “Unfortunately for some cars it will take months for our customers to receive them, especially our GLS and GLE (SUV), where it’s not just the supply chain constraints, but the demand globally is so high that we have to prioritize and make sure we can actually deliver it all year round.”

As of the first quarter of 2022, the company had a total order bank of more than 4,000 units in its backlog, he said.

Mercedes-Benz India had sold over 2,000 units of premium vehicles priced above Rs 1 crore in 2021. These cars including Maybach S-Class, Maybach GLS, high-end AMGs, S-Class and the GLS SUV, account for approximately 30 percent of the company’s total annual sales. It expects the volume of the high-end segment to increase by 20% in 2022.

Another luxury automaker, BMW, is also seeing a similar trend of its premium vehicles seeing faster growth.

“We are very strong with SAV (Sports Activity Vehicle) models – X3, X4 and X7. We are seeing 40% growth in this segment. They now make up over 50% of our portfolio,” BMW Group India said. said President Vikram Pawah.

BMW India’s SAV segment, with prices starting above Rs 61 lakh, had recorded sales of 1,345 units in the first quarter, a growth of around 40%.

The company has a total reservation of 2,500 units, including its MINI compact luxury car with a waiting period of around 3 months.

In the January-March period, the BMW Group had one of its best quarters in India with a 25.3% jump in four-wheeler sales to 2,815 units.

Luxury car makers hope supply constraints from ongoing semiconductor shortages, unavailability of ocean freight and the impact of war in Ukraine will ease towards the end of the year. ‘year.