Luxury car firms brace up for a good year ahead
Luxury car buyers in India will be spoilt for choice in the coming months as more than two dozen new models, including some refreshes, are likely to hit the roads as manufacturers eye double digit growth after a threeyear slowdown.
Sales of luxury cars in the country were hit by a ban on the sale of diesel cars in Delhi in 2015 and the demonetisation of high currency notes in November 2016. In calendar year 2016, sales contracted 4.24% to 33279 units from a year earlier according to sales forecasting and market research firm I.H.S Markit.
The firm estimates that the market will expand by more than 10% in 2017, the fastest in three years, and 42% and 21% in 2018 and 2019 respectively.
Executives at most luxury car firms said the first three months of the current calendar year have been encouraging, an indication of the trend ahead.
Audi India Pvt Ltd, once the market leader, sold fewer cars during 2016 in India, impacting overall sales in the luxury car segment. Audi sold around 7,800 units in 2016 as against 11192 a year earlier, a drop of 30%. The company plans to change that this year. “Clearly, 2017 is the year of Audi Reloaded and we will come back much stronger in the years to come than anyone would expect,” said Rahil Ansari, head, Audi India, adding that he expects the luxury car market to “showcase a better performance this year.”
Audi has achieved more than what it expected in the first quarter, according to Ansari who did not divulge numbers. Earlier this month, Audi launched a face-lift of A3—a premium sedan. The A3 is one among four models the company has launched so far in the current calender year. It plans to bring another six new models by the end of the calendar year in a bid to regain the pole position it once enjoyed.
“We want to be at the top spot as we belong there. Clearly, we do not have to do it overnight but in a sustainable manner - when we reach the top, we will stay there,” he said.
Meanwhile, market leader Mercedes Benz India Pvt said on Tuesday that the three months to March 2017 were its the best ever. Besides the new E-Class and the strong sales momentum of its SUVs, a revival in market sentiments has helped sales, the carmaker said.
Mercedes sold 3,650 units in the January-March 2017 period, an increase of 1% year-on-year. Although Delhi and Mumbai continue to be the company’s key markets, non-metro markets have also contributed to sales volumes, said Roland Folger, MD and CEO, Mercedes.
Tata Motors Ltd-owned Jaguar Land Rover has lined up 10 launches for this year, including the new Land Rover Discovery, Range Rover Velar and Jaguar XE diesel, PTI reported on 12 April, quoting Rohit Suri, managing director and president at JLR India.