The second largest nation in the world houses about 60-70 million cars on its roads. But at a time when India’s automobile industry was dealing with low demand and declining sales, especially in the mid-market aka budget buyer segment, luxury cars have emerged as absolute winners. Going by the statistics, luxury cars make for less than 2% of the total automobile sales in India. This provides luxury carmakers with a huge untapped potential for their products.
Though luxury cars don’t sell much in reference to absolute numbers, the segment has been growing at a compound annual growth rate (CAGR) of 30 per cent for the past few years. And while the economic slowdown affected automobile sales in India, the luxury segment continues to grow with recorded sales of 23,000 units in 2011, which is expected to reach 30,000-31,000 by the end of 2012. Even the increase in import duties from 60 per cent to a staggering 75 per cent, rising petrol prices, and the declining rupee, have failed to deter both, the buyer and seller of expensive cars in the country.
ngg_shortcode_0_placeholderA closer look into this phenomenon reveals the reason behind the success of luxury carsin a country, which otherwise suffers at the hands of crippling economic conditions. Indians now have greater disposable incomes, which puts luxury cars right up in their ‘must-have’ list. Other than that, the initiatives taken up by the brands play an important role in motivating people to buy a swanky car. The top players of this segment have made their brand accessible by setting up dealerships in smaller cities and towns, this is in addition to other marketing strategies like sponsored golf tournaments, contests, film placements, and celebrity endorsements. The other reason luxury cars continue to do so well in India is their introduction of low-priced models, which gives them a better opportunity to capture market share.
Having said that, here is a list of the five most expensive cars available in India.
