India Chooses Luxury Cars, Report Says Over 6 Vehicles Priced Over Rs 50 Lakh Get Sold Every Hour In 2024

This indicated a major rise in the performance of the luxury car industry. Comparatively, five years earlier, the industry clocked sales of just two cars per hour in the segment

This surge was attributed to the robust demand in the premium segment of the market and a rising affluent customer base.

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India clocked a major rise in the sale of luxury cars in 2024. A report by The Economic Times revealed that the country saw more than six vehicles priced above Rs 50 lakh being sold every hour in the year.

This indicated a major rise in the performance of the luxury car industry. Comparatively, five years earlier, the industry clocked sales of just two cars per hour in the segment, the report said. This surge was attributed to the robust demand in the premium segment of the market and a rising affluent customer base.

The report further noted that the luxury car industry is anticipated to grow further with automakers thinking to launch more than two dozen new models in the coming year. This growth rate might be moderate due to a high base, experts project sales to surpass 50,000 units for the first time in the year.

Citing Balbir Singh Dhillon, Head, Audi India, the report said, “There may be 8-10 per cent growth in 2025.” The executive attributed this to a robust recovery seen in demand post the Covid-19 pandemic.

Santosh Iyer, MD and CEO, Mercedes-Benz India, pointed out that the sector’s growth would be backed by a supportive business environment, consistent earnings, and optimism among consumers.

The report noted that Mercedes-Benz India is set to end 2024 with sales of almost 20,000 cars, registering a strong performance. The firm clocked a 13 per cent hike in sales, with 14,379 units sold during the first nine months of the year. Iyer stated that the firm intends to continue its pace in 2025 with more product launches and expansion in the market.

BMW India also recorded high sales, climbing 5 per cent to touch 10,556 vehicles between the January-September 2024 period. On the other hand, Audi India saw a 16 per cent fall in sales owing to supply chain constraints, however, the automaker plans to make a strong recovery in 2025 with a new lineup.

Despite the growth, luxury cars accounted for a little over 1 per cent of the Indian automobile market, which was the lowest among major global economies. As per the Wealth Report 2024 from Knight Frank, the country is expected to see the largest surge in ultra-high-net-worth individuals (UHNWIs) globally, with the number set to climb by 50 per cent from 13,263 in 2023 to 19,908 by 2028.