Luxury Car Brands Buck Market Trends, Forecast Strong Year Ahead
Luxury Car Brands Buck Market Trends, Forecast Strong Year Ahead
As the broader Indian car market faces concerns about slowing sales, the luxury segment, dominated by brands like Mercedes-Benz, BMWhttps://parkplus.io/new-cars/bmw-car/, and Audi, remains resilient, showing no signs of a slowdown. This high-end sector continues to experience robust demand, driven by affluent consumers seeking premium vehicles.
For luxury brands such as Mercedes-Benz and BMW, 2024 has been a year of record-breaking sales. Mercedes-Benz India, a symbol of luxury for Indian car buyers, reported a 9% increase in sales, reaching a record 9,262 units in the first half of the year. BMW outpaced this growth, recording a 21% jump in sales.
Mercedes-Benz attributed its success to strong demand across its diverse portfolio, particularly in the SUV segment, which accounted for 55% of its total sales. High-end vehicles, constituting 25% of all cars sold by the brand in H1, further underscored its market strength. Meanwhile, Lexus India also saw a 14% increase in sales during the first half of 2024, with the Maybach segment emerging as the fastest-growing portfolio, boasting a staggering 108% growth.
Electric vehicles (EVs) are a significant contributor to the luxury segment's growth. Mercedes-Benz reported a 60% increase in BEV (Battery Electric Vehicle) sales in H1 2024, with BEVs making up 5% of its total sales. The recent launch of the EQA 250+ EV, priced at Rs 66 lakhs and offering a range of up to 560 km, added to the brand's EV lineup, now totaling four models. Mercedes-Benz plans to double its BEV portfolio by year-end and is aggressively expanding its charging infrastructure, aiming to have more than 1,000 charging points by the end of 2024.
Santosh Iyer, MD and CEO of Mercedes-Benz India, expressed optimism about sustained growth, especially with six new models slated for launch in the second half of the year. "With some of the most awaited products lined up for the upcoming festive season, we expect the remaining quarters to continue the forecasted growth," he said.
BMW Group India reported a stellar first half of 2024, with a 21% increase in sales for BMW and MINI combined. This surge was fueled by high demand for sports activity vehicles (SAVs), luxury-class vehicles, and electric cars. BMW's EV sales, including the popular BMW iX, exceeded expectations with over 1,000 units sold, marking a milestone as the first luxury carmaker in India to surpass 2,000 cumulative EV deliveries.
The BMW X7 emerged as a top seller in the luxury category, highlighting the brand's dominance in the high-end market. The company also emphasized the increasing inclination of luxury consumers towards sustainable mobility, with 397 units of fully electric BMW and MINI cars sold in the first six months of 2024.
Audi India faced challenges due to supply chain disruptions but still 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.
Balbir Singh Dhillon, Head of Audi India, noted, "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 normalize during the second half of this year, and we will be able to better serve customer demand."
The overall luxury car market in India during the first half of 2024 reflects a significant shift towards electric vehicles, with Mercedes-Benz and BMW leading the charge through their extensive EV portfolios and investments in charging infrastructure. This trend indicates a growing acceptance of sustainable mobility solutions among luxury car buyers.
With strong market fundamentals and continued innovation, the luxury car segment is well-positioned to thrive despite broader market challenges. The upcoming festive season and the introduction of new models are expected to further drive demand, ensuring that luxury car brands continue to see robust growth in the coming months.
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