According to study, “Luxury Car Market in India 2011”
some of the major companies that are currently working in the luxury car market
in India are General Motors Company, Volkswagen AG Ltd., Volvo Group, Daimler
AG Pvt. Ltd., Jaguar Land Rover (owned by Tata Motor Ltd.), Bayerische Motoren Werke
AG (BMW), Toyota, Fiat Chrysler Automobiles, Ford Motor Company, Renault Nissan
Alliance, Isuzu. These key players are progressively more focusing on offering
well-established products, producing strong brand names and exhibit long-term
reliability. The companies in the luxury carmarket are increasingly competing
against each other, which are based on factors such as features, price and
product quality. Some of the other luxury car brands in India are Maserati
Quattroporte, BMW 7-Series, Porsche Panamera, Land Rover Range Rover Evoque, Porsche
Cayenne, Jaguar XJ L and Audi A8 L.
A car, which has some extra
features for comfort or status, called luxury car. It is also known for wider
and broader scope. These cars are more costly than normal car. It provides pleasant
and some features such asgood quality, high speed, technologically innovative
modern, ample leg room, top quality music system, brilliant suspension for
smooth ride, dynamic performance, phenomenal designs, leather seats, heated
seats, safety and some other advanced features, which make it attractive to
customer.
On
the basis of vehicle type, the luxury market is segmented into Sports Utility
Vehicle (SUV), hatchback and sedan. SUV may be five or seven seater: some
examples are Jeep Cherokee, Land Cruiser, Rover and Fortuner. Some hatchback
luxury cars are i20 and Polo. On the basis of drive type, the market is
segmented into electric vehicle and IC engine. On the basis of price, the
market is segmented into INR 20 lakhs to 50 lakhs, INR 50 lakhs to 80 lakhs and
above INR 80 lakhs. On the basis of average type, the market is segmented into
standard premium, super niche, high performance and ultra luxury. Moreover, on
the basis of ownership, the market is segmented into new car and pre-owned.
The market of luxury car is mainly
driven by increasing investments in automotive sector. Growing in high income
households, growing economy, increasing disposable income, growing internet
penetration in non-metros, exposure to international lifestyles, increase in
the number of millionaires, availability of loan facility, favourable
demographics, preferred choice of the young & affluent, low interest rate
of loans and government regulations are increasing significantly which led to
the growth of the market.
Apart from the advantages some of
the challenges associated with the luxury car market include polluting
environment, increase in number of cases of labour unrest, environmental issues,
lack of development of proper infrastructure and affordability. Moreover luxury
car market featuring some new trends are increasing in the number of
distributors across country, global companies are eyeing India as manufacturing
base, entering pre-owned or used car market and players diversifying offerings
etc.
During 2010-2011, percentage
growth sales of BMW 5 series, Mercedes E Class, Toyota Camry and Porsche Cayman
were 99.90 %, 69.60 %, 52.50 % and 42.90 % respectively. In 2011, the total
growth rate of luxury car market was 52.87 %, in India. This market is
increasing in spite of low penetration levels. Apart from these, other factors
which influence would influence luxury car market such as rising number of
foreign players anticipated to drive the major growth over the coming years.
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