Luxury car market to continue growth at 50% despite slowdown

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The growth in the luxury car segment is in fact remarkable with the trio leading the segment far beyond the expectations. The car sales within themselves is up from 15,000-16,000 unit sales last year to 22,000 units. Moreover the BMW X1, the lowest priced car from the German car manufacturer’ s flock has contributed to the phenomenal numbers. The car has shown some good sales this year with 2,500-3000 unit sales. Not just for BMW, the X1 SAV has helped the entire segment grow up to 50% mark which would not have crossed beyond 30% otherwise. From the Audi’s end, the Audi Q5 and Q7 have done their share of contribution. It is a common assumption in the industry that the luxury segment is untouched with the general slowdown in the car industry due to the double whammy of petrol price hikes and increased interest rates on loans.

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It might be true partially, where the fuel rates might not affect the luxury car buyers. But the statistics show that 75% of the luxury cars are financed. This means the luxury car sales are influenced by the high interest rates. The other car manufacturers in the luxury car segment , the Rolls-Royce of BMW and Jaguar Land Rover of Tata Motors were also a part of the growth story. The car makers in this segment are bound to attain their high sales targets by entering into the tier II cities and a few upcoming launches. The auto giants in this segment now have their presence in the cities like Coimbatore and Lucknow which is an effort to improve the growth in the country.