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Best Cheap Luxury Cars – Mumbai: Small towns like Surat and Ludhiana have entered into the top 10 markets for luxury cars in India in the last decade as economic expansion led to a new class of successful young entrepreneurs who want to show their growing wealth. Mumbai and Delhi maintain their place as the top market for brands such as Mercedes-Benz, BMW and Audi even though their share has declined overall, according to senior executives at the car company.
Overall, luxury car sales have grown rapidly over the last year and a half despite tax hikes and unfavorable import duties. Sales of the top three carmakers in the category rose about 20% to more than 33,600 units by 2017.
In the first half of 2018, sales of market leaders Mercedes-Benz India Pvt. Ltd. rose 12% to 8,061 vehicles. BMW India Pvt. Ltd. posted a 13% increase to 5,171 units of BMW and its Mini brand.
The Tier-II and tier-III markets helped boost the expansion of this sale on a par with the metro, if not more, according to the automaker.
“We see strong contributions coming from established markets like Delhi NCR, Mumbai, among others,” Vikram Pawah, president of BMW Group India, said by email. “At the same time, emerging markets in tier-II and tier-III cities have grown rapidly and show tremendous growth prospects for the future.”
Along with a customer base that has “remarkably evolved” over the last decade, Pawah says outstanding young people from relatively smaller cities, who “have a global outlook, travel well and have an eye for luxury products” will ” actively shaping demand for the luxury car market “in the coming years.
Sagar Agarwal, a 24-year-old businessman from Surat, bought his first luxury car, the Volvo XC40, last week. Although his joint business family owns two Volvos and Mercedes E-Class sedans, Agarwal is required to make a purchase with the success of his newly established fabric-exporting company.
The car symbolizes his achievements, and will function well as a “status symbol” in business circles, he said.
“Buying our first luxury car in 2014 really changed our outlook on this segment, which we think offers nothing special apart from the high price point,” Agarwal said. “The level of safety and comfort and ease of handling are not even close
other mass cars I drive before. “He added that he wants to buy more luxury cars as his income increases in the future.
Broadly, the Indian luxury car market has a large enough headroom to grow. The Wealth Management box said earlier this year that households with very high net worth (those with a minimum net worth of more than $ 25 crore) are expected to double to 330,400 by 2022. Indians richer at a younger age of about 60 % of individuals surveyed under 40 years compared with 47% interviewed a year earlier, Box said in a report.
To be sure, this change is not uniform for all luxury car makers. Mercedes-Benz has not witnessed a shift in the top 10 markets over the last five years, according to chief executive and managing director Roland Folger.
However, contributions from Mumbai and Delhi have dropped to about 45% recently from nearly 70% in 2009-10, an executive said on condition of anonymity. “Apart from the top 10 cities, others account for 10% marginal,” he added.
However, analysts say the next wave of growth will come from unexplored cities, as the metro-accessable market has reached saturation levels for luxury cars.
They “must serve cities with populations of 500,000 and above, as the tendency to shop at smaller commercial centers such as Kota and Kochi increases,” said Anil Sharma, associate director at MarketsandMarkets, a researcher. He said the proliferation of luxury car companies is “very strong on the metro, so the market that can be addressed there has been served.”