“Last year, we recorded best-ever sales in the Indian market,” said Santosh Iyer, managing director at Mercedes Benz India, which plans to launch a dozen vehicles, including electric vehicles, in 2024.
BMW, which achieved more than 50% market share, expects to grow in double digits in 2024, said Vikram Pawah, president, BMW Group India.
The transition to electric vehicles will help accelerate luxury sales, according to experts. Strong payouts on employee stock options and corporate earnings coupled with a recovery in economic growth has resulted in a wider net of rich young achievers, they said.
India’s luxury car market is at an inflection point, moving from a phase of explosive growth to one of sustained, quality-driven expansion. While the immediate future might see a moderation in growth rates, the long-term outlook remains positive, driven by strong fundamentals and evolving young consumer preferences to pay a premium for luxury products, said Ravi Bhatia, president, Jato Dynamics.
| Parameter/ year | 2022 | 2023 |
| Sales | 35,588 | 42,731 |
| Growth | 32% | 20% |
| Average weighted retail price | Rs 74,22,656 | Rs 80,62,709 |
| Top 5 models by sales | Mercedes E Class BMW 3 Series BMW X 1 Mercedes GLC Mercedes GLE |
BMW X1 BMW 3 series Mercedes E Class Mercedes GLA Mercedes C Class |
*Car makers include Mercedes, BMW, Audi, JLR, Volvo
Source: Jato Dynamics