While the Indian auto sector is experiencing a down run, the luxury car market is witnessing growth. The sector is expected to grow at a rate of 15% per annum in the period 2015-2018. In 2014 the Indian luxury car market sold 33,000 units and it is expected that sales in 2015 will be 38,000 units. It is projected that the Indian luxury car market will cross 100,000 units by 2020.
The luxury automobile manufacturers are now targeting the young achievers in India who are emerging as an important target segment for the luxury segment in the country. Players plan as many as 50 premium cars launch in the country. Audi the market leader in India has 10 new car launches planned for 2015 and Mercedes Benz and BMW together plan to launch 15 new cars across the price spectrum.
Growth in the global luxury car market in 2015 is expected to be led by demand from China and India which have been posting double digit market growth and recovery of the European luxury car market.China became the largest auto market in the world in 2009, leaving the US behind. It is projected that the luxury car market in China will grow at an annual compounded rate of 12% in 2014-2020 while the overall passenger car market will grow at 8%.
