Indian luxury car market youngest in world

Chennai: India's demographics have turned the country into one of the youngest luxury /premium car markets in the world. Top luxe brands like Audi, Mercedes-Benz and BMW — which together comprise more than 95% of India's luxury car market — say that India's luxury car demographic is among the youngest even in the emerging market pecking order.

Take Audi which, with its more than 10,000 unit tally, is now the No. 1 luxury car brand in the Indian market. India tops the list of young markets for Audi across the world, pipping hot spot China to the game. Said Joe King, head, Audi India: "The average age of luxury car buyer in India is around 35 years. Globally , it would be 43-45 years. In the Audi ecosystem, India is our youngest market."

Dittos Mercedes-Benz , which has also been targeting the 30+ age bracket with its new compact line-up . Said Santosh Iyer, head of marketing , Mercedes-Benz India: "India is certainly among our youngest markets. Typically, emerging markets show a younger profile compared to developed ones. So China, Brazil and Russia too are quite young markets for example . The average age globally and in India has come down after the introduction of new models like the A Class and B Class. In India, the average age for the A Class for example is 34-35 years but for the S Class it would be 45-50 years. So it differs model to model."

Luxury car marketers say part of the young drive has to do with the new range of compact products from the big three in the luxury automotive business. "Products like the Q3 and now the soon-to-belaunched A3 appeal to a younger set of customers," said Audi's King. "In future, the used cars will further expand this young customer base."

Auto experts say with an average price tag of around Rs 35 lakh, the entry into the luxury car segment is a tough call for most young buyers in markets like India. For example , the median age of BMW's customers stretches from 30 to 60 years. "It's not as if only young people buy luxury cars, but it is certainly true that more of them are now entering this segment in India thanks to products like the 1 Series," said the BMW spokesman.

That's why it's the entrylevel segment — comprising models like the A Class and B Class or the X1 or soon-to-debut A3 — that has had the maximum appeal among the sub-40 age bracket where the price tag is in the Rs 20 lakhplus category.

Auto experts say India's young demographic is among its most exciting aspects as an emerging market. "The thirst for luxury in India is enormous ," said Audi's King, a reason why the big three luxe brands are now looking at non-metro markets for incremental growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.