Luxury car sales in India is set to touch new heights in the coming years, claims a new report by CII-IMRB.
According to the report, with the new segment of affluent consumers in India, the overall luxury market in the country is set to cross $10 billion by 2014. The report further stated that luxury car sales will touch double digit growth in the coming years and is likely to continue the trend for some time.
"The luxury car segment has been able to hold its allure despite the turbulent and challenging times faced by the entire automotive sector. While this segment also has witnessed a slight dampener in terms of postponement of purchases, it is still growing impressively at 15 per cent plus year-on-year. For the next three years, the segment growth is expected to continue at 15 per cent upwards,'' points out a report of CII-IMRB as quoted by The Hindu.
The report also noted that though the economic slowdown in the country has left the luxury market affected, the situation is likely to see a revival by mid 2014. The report, which termed the new wealthy class in the country as the 'closet customers', also observed the young India's affinity for luxury vehicles. According to industry experts, the roll out of some relatively low-cost vehicles by the luxury car makers could also be contributing to the emerging trend.
"A major driver of luxury car market's expansion has been the roll-out of newer vehicles at significantly lower price points. They pull a new set of consumers to actively consider premium vehicles. This trend will continue, and be a significant part of the growth story for luxury brands in India," said Wilfried Aulbur, Managing Partner, Roland Berger Strategy Consultants.
In India, making the brand popular is said to be one of the most difficult challenges faced by the luxury players.
Talking to Economic Times, BMW Group India President Phillip von Sah opined "For luxury companies, making brand familiar is the most important challenge. The next is to ensure that customer remains loyal to the brand."