Rolls-Royce sees younger customers in India

A Rolls-Royce customer is usually seen as someone who is well into his/her 50s, who has reached high levels of success in life. But that seems to be changing. Rolls-Royce has recently welcomed a 20-year old customer. This youngster bought a Wraith which is priced at over Rs 4.5 crore in India. Sounds surprising? " To us it's not a surprise anymore because it is happening in other markets. But in India, it hasn't happened often before," says Sven J Ritter, general manager, Asia Pacific, Rolls-Royce Motorcars.

Ritter was in Mumbai to launch the refreshed version of the Ghost. With the introduction of the new Ghost, the average age of the Rolls-Royce customers is expected to come down. “The concept that only people over 55 years old buy a Rolls is no more true. It was true earlier because of the Phantom which was a pure chauffeur-driven car," says Sharad Kachalya, director, Navnit Motors, a Mumbai-based Rolls-Royce dealer.  

The Ghost is among the more popular models in Rolls-Royce's India line-up contributing around 65 percent of the brand's total sales here. It is estimated that around 45 Rolls-Royce cars were sold in India in 2013 up from 10 in 2010.

The drop in the average age of a Rolls-Royce customer here may also have to do with new customer segments. According to Kachalya, these new customers are from the film industry and from the pharmaceutical and textile sectors. Earlier, the customer base primarily comprised of royal families, top industrialists and realty developers.

The super luxury market largely has remained immune to the earlier jolts in the economy like the global meltdown of 2008-09. But, of later, it is showing some vulnerability, says a representative of the business. However, the results of the May general elections has resulted in more inquiries at showrooms thanks to positive buyer sentiments.

Rolls-Royce would hope for these enquiries convert into sales to have another record year. Last year, Rolls Royce globally sold 3,630 cars. Ritter says the company is heading for another record in 2014 but gave no figures.

Rolls Royce's sales in Europe has seen a six percent growth in the first half of 2014. The growth figure in Asia-Pacific region stood at 40 percent in this period. One out of three Rolls-Royce cars is sold in Asia, and China overtook USA as its single biggest market last year.  

Rolls-Royce hopes for a sustainable growth in India even as it feels the existing high tax structure on imported cars limits the growth prospects. As for the Ghost Series II, the company says its entry will help the brand to have a 'strong order bank' next year. The car already has pending orders from Indian customers. 

Photograph: Sven J Ritter, GM - Asia Pacific, Rolls Royce (right) and Sharad Kachalya, Director, Navnit Motors at launch of the Rolls Royce Ghost Series II, in Mumbai.