Booming Luxury Car Market In India

Luxury car market in India has grown at antowards expensive and luxurious cars. Even the
accelerated pace in the past couple ofGovernment of India is supporting the entry of
years.Researches and studies have revealed thatluxury cars by formulating policies such as the
the luxury car market is growing at a steadyrelaxation of equity regulations and the reduction
speed of 25% per annum with more and moreof import tariffs on automobiles. These policies
numbers of luxury cars entering Indian carhave reduced the price tags of top notch luxury
market. Moreover, it is not only the luxury brandscars, which have eventually led to the growth of
that are creating a benchmark in the Indianluxury car market in India.
industry but also the affluent class people who areSome of the most renowned car manufacturers
keen to splash cash for the cachet of exclusivedesigning luxury cars for the Indian market include
cars.BMW, Rolls Royce, Porsche, Daimler, and Bentley.
Statistics show that in 2001-2002 there wereThese manufacturers have produced a number of
nearly about 20,000 families in India with an annualluxury cars falling in the price range of Rs 50 lakh
income of more than Rs 1 crore and they usedto Rs 5.5 crore. Luxury cars like Porsche Cayenne
to spend some of their income on luxury cars. BySUV, Bentley’s Arnage R, Mercedes Benz
2005, the number of families earning more thanC-Class, Porsche Carrera, Bentley, Rolls Royce
Rs 1 crore rose to about 53,000. Even the WorldPhantom, BMW 5-Series are among the hottest
Wealth Report 2005-06 has recorded a growth ofcars in the luxury market. Infact, the entire range
19.3 percent in the number of high net-worthof Mercedes-Benz and BMW cars are at the
individuals in India in the year 2005. It is expectedhighest peak. In a crowded luxury market, the
that by the end of 2010, nearly about 1,40,000essence of Audi cars is also there with strong
millionaires are expected to be found on Indianfootprints.
streets.Apart from all the Mercedes, BMW, Porsche, and
The key factors contributing to the growth ofBentley the entire range of Audi cars is also
luxury car market are raising economy and ITground breaking. Audi Q7, Audi TT, and the
boom. Rising economy has given way to moreproposed Audi R8 are a benchmark for the luxury
disposable income which people are splashing oversegment. Hopefully, by the end of next year,
luxurious and high-end cars. With the boom in ITFerrari enthusiasts will also be able to buy one of
industry, youngsters are earning higher packagesthe most expensive cars, Ferrari Modena, in India.
which enable them to enjoy a joyful ride in theirThe luxury car market is on a continuous growth
favourite luxury car. Apart from that easyand is expected to become the world’s
availability of loan and good finance schemes havelargest market for luxury cars.
also pushed youngsters and middle class people