Explained: Why premium carmakers focus on entry-level offerings in India

Automakers are caught in a peculiar chicken-and-egg situation: Prices have to come down if volumes are to increase and volumes won't increase unless prices come down

Any luxury carmaker operating in India today is aware of two hard realities. One, they simply must get more users to drive and buy their products. And two, the prices of their cars are caught in a peculiar chicken-and-egg situation. That’s because prices have to come down if volumes are to increase and volumes won’t increase unless prices come down.

So while BMW, Mercedes-Benz, Jaguar Land Rover, Lexus and Audi all sell their standard models, the collective category of these cars generates less than 40,000 units a year. Small change compared to other markets. In China, for instance, all three