 "Luxury on wheels: Over 6 high-end cars sold every hour in India in 2024")
India witnessed a significant rise in the sale of luxury cars with over six vehicles priced above Rs 50 lakh sold every hour in 2024. This marks a sharp increase from just two cars sold per hour five years ago, driven by robust demand at the premium end of the market and an expanding affluent consumer base, according to a report in The Economic Times.
The luxury car segment is expected to grow further with automakers planning to introduce more than two dozen new models in 2025. While the growth rate may moderate due to a high base, industry experts anticipate sales to exceed 50,000 units for the first time, the report said.
The report quoted Balbir Singh Dhillon, Head of Audi India, as saying that there may be 8-10 per cent growth in 2025. He attributed this to a strong recovery in demand after the pandemic.
Santosh Iyer, MD and CEO of Mercedes-Benz India, highlighted a conducive business environment, steady earnings, and positive consumer sentiment as key drivers for the sector’s growth.
Mercedes-Benz and BMW lead the market
Mercedes-Benz India is set to conclude 2024 with nearly 20,000 cars sold, marking a strong performance. The company reported a 13 per cent increase in sales, with 14,379 units sold during the first nine months of the year.
The company aims to maintain momentum in 2025 with new product launches and market expansion, Iyer was quoted as saying in the report.
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BMW India also posted record sales, growing 5 per cent to 10,556 vehicles between January and September 2024. Audi India, however, experienced a 16 per cent decline in sales due to supply chain constraints but is preparing for a strong recovery in 2025 with a new product lineup.
Despite these gains, luxury cars account for just over 1 per cent of the Indian automobile market, the lowest among major global economies. Experts believe this indicates significant growth potential, as India is home to one of the highest number of billionaires worldwide, the report said.
According to Knight Frank’s Wealth Report 2024, India is projected to see the largest increase in ultra-high-net-worth individuals (UHNWIs) globally, with their numbers expected to rise by 50 per cent from 13,263 in 2023 to 19,908 by 2028. This growth will outpace other nations, including China, Turkiye, and Malaysia.
India’s expanding affluent class and increasing demand for luxury vehicles signal a thriving future for the high-end automotive market.
Luxury car sales figures over the years
-2020: 20,500
-2021: 28,600
-2022: 38,000
-2023: 48,000
-2024: 50,000 (estimated)
-2025: 53,000–54,000 (projected)