The overall PV market may be slowing down but for the luxury car brands in India, things have never been better.
20 Jul 2024 | 2710 Views | By Prerna Lidhoo
While there are fears of slowing sales in India’s car market as the year progresses, one segment that expects no dip in demand is the luxury category, dominated by brands such as Mercedes-Benz, BMW and Audi.
For brands such as Mercedes-Benz and BMW, things have never been better as ...
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While there are fears of slowing sales in India’s car market as the year progresses, one segment that expects no dip in demand is the luxury category, dominated by brands such as Mercedes-Benz, BMW and Audi.
For brands such as Mercedes-Benz and BMW, things have never been better as they make their way through what promises to be yet another record year.. Mercedes-Benz India, synonymous with luxury in the minds of car buyers in India, saw sales rise 9% to a record 9,262 units in the first half, while rival BMW saw a 21% jump.
Mercedes-Benz said it saw strong demand across its portfolio, particularly in SUVs, which constituted 55% of total sales. Notably, its top-end vehicles segment constituted 25% of all cars sold in H1. Lexus India, too, saw a 14% increase in sales during the first half of 2024. Maybach was the fastest growing portfolio growing by +108% in the period.
According to the company, BEVs grew by 60% in H1 2024 and its penetration stood at 5% of total H1 sales. The company is hopeful of continued momentum in the second half as well, boosted by new launches. It is expected to launch six new models in the second half of the year, taking this year’s total to 12.
The latest to join Mercedes-Benz’s line-up has been the EQA 250+ EV, priced at Rs 66 lakhs and boasting of a range of up to 560 km. With this, it now has four EVs in the Indian market. The company plans to double its BEV portfolio by year-end and is also constructing a network of charging points. “With some of the most awaited products lined up for the upcoming festive season, we expect the remaining quarters to continue the forecasted growth,” said Santosh Iyer, MD and CEO, Mercedes Benz India.
“There’s a very strong infrastructure that we’re building up comprising 35 plus ultra-fast DC chargers, 100+ AC chargers and complementary wall box chargers. By the end of 2024, we aim to have more than 1000 charging points,” he added. Meanwhile, BMW Group India reported even stronger first-half performance, boasting a 21% increase in car sales for BMW and MINI combined. The surge was driven by strong demand across their sports activity vehicles (SAVs), luxury class vehicles, and electric cars.
BMW's EV sales, including models like the popular BMW iX, exceeded the company’s expectations with over 1,000 units sold, making BMW the first luxury carmaker in India to surpass the milestone of 2,000 cumulative EV deliveries.
"BMW electric vehicles emerged as the top choice of luxury consumers when it comes to sustainable mobility — 397 units of fully electric BMW and MINI cars were sold in the first six months,” the company said. In the luxury category, the BMW X7 emerged as a top seller, highlighting the brand's dominance in the high-end market. On the other hand, Audi India faced challenges due to supply chain disruptions, yet managed to retail 1,431 units in Q2 2024, marking a 37% growth over Q1 2024. Despite these challenges, Audi remains optimistic about the market's long-term potential and continues to expand its pre-owned car business, which grew by 33% year-on-year.
“While the supply situation in Q2 2024 has improved compared to Q1 2024; it still played a limiting factor on our sales performance. We are confident that our supplies will normalise during the second half of this year and we will be able to better serve customer demand,” said Balbir Singh Dhillon, Head of Audi India, adding that demand remains strong.
Overall, the luxury car market in India in H12 024 reflects a shift towards electric vehicles, with MercedesBenz and BMW leading the charge with their expansive EV portfolios and investments in charging infrastructure.
This feature was first published in Autocar Professional's July 15, 2024 issue.