fbpx

Luxury cars skid, clock lowest sales since 2010 – Times of India


NEW DELHI: The luxury car market in India is shrinking fast, and has even gone below the numbers it had touched nearly a decade ago.
Hit hard by corona woes, economic downturn and high taxes, the sale of highly aspirational cars from companies such as Mercedes-Benz, Audi, BMW and Jaguar Land Rover slipped to an estimated 21,400 units in 2020 — a 37% decline over the nearly 34,000 units sold in 2019.
This number is the lowest since 2010 when the industry had sold 15,280 vehicles, according to data sourced from the industry. Interestingly, the share of luxury to overall passenger vehicle (cars, SUVs, MPV/UVs) sales also slipped below the 1% mark for the first time since 2010 when it used to be 0.7%.

Luxury’s contribution to overall passenger vehicle sales has generally been a little over 1% in the intervening years, though this is way lower than numbers in developed countries of the West and other emerging economies.
According to full-year numbers revealed by companies, Mercedes-Benz — the German car major that leads the category — had a fall of 43% as its volumes declined to 7,893 units against the 13,786 units it sold in 2019.
And if Mercedes’ fall seems steep, things actually became worse for compatriot Audi that saw its sales crash to 1,639 units in 2020 against 4,594 units in 2019. This is a drop of 64%, and a far cry from the near-10,000 numbers it had touched a few years ago.
For BMW, the sales declined by 31% to 6,604 units against the 9,641 units it sold in 2019. Other companies such as Jaguar Land Rover and Volvo are yet to make their numbers public.
Companies have often complained that GST tax rates on luxury vehicles are “exceedingly high” and need to be brought down gradually to drive in affordability in the category.
Martin Schwenk, MD of Mercedes-Benz, told TOI that demand has been coming back gradually as economic activity resumes and efforts to vaccinate the population gather pace.
“The summer was tough due to the lockdown, and we took quite a hit as an industry. However, as we closed 2020 and towards the fourth quarter of the year, the overall demand started to pick up. It was actually better than what anyone could have anticipated six months ago.”
Mercedes is planning a product offensive this year with as many as 15 new launches, including fresh launches and also upgrades to existing cars.
Balbir Singh Dhillon, the head of Audi in India, said there is optimism when it comes to demand.
“Our resilience was under test in 2020, but the worst is now over. We have a busy 2021 that started with the launch of new Audi A4. We will launch sedans, SUVs and performance cars this year.”
The industry has time and again petitioned the government to provide tax relief, complaining that higher prices are keeping a large number of buyers away.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

PHP Code Snippets Powered By : XYZScripts.com