LONDON, Sept. 26, 2016 /PRNewswire/ -- Executive Summary
The Indian luxury car market witnessed growth in 2015 and the three German players Mercedes Benz, Audi and BMW dominated the market, posting combined sales of approximately 31,000 units. In 2015, the Indian luxury car market sold 35,300 units and it is expected that sales will grow to 87,300 units by 2020. The sector is expected to grow at a rate of 15% per annum in the period 2015-2018.
Growth in the sector has been boosted by a number of new product launches across price points coupled with enhanceddealer network beyond the metropolitan areas in India. Other growth drivers include availability ofrobust financing options and a focus on localisation of parts.The luxury automobile manufacturers are consistently targeting the young achievers in India who are emerging as an important target segment for the luxury segment in the country. Product launches are catering to the demand from this segment. In 2015, of the approximate 50new product launches in the luxury car segment, Mercedes, Audi and BMW contributed close to 40 including both new vehicles as well as variants of existing products.
The penetration of luxury cars in India stands at an insignificant 1% as compared with 2.7% in Brazil, 8% in China and 5% in Japan. The sector is budding with opportunities which the players are all set to tap. While growth in 2016 will be affected by uncertainties borne out of regulations, the sector is expected to post a robust growth. Market beyond the metros will be the target of the leading players where focus will be on enhancing dealer networks.
Growth in the global luxury car market in 2015 was led by demand from China and India which have been posting double digit market growth and recovery of the European luxury car market.China became the largest auto market in the world in 2009, leaving the US behind. It is projected that the luxury car market in China will grow at an annual compounded rate of 12% in 2014-2020 while the overall passenger car market will grow at 8%.