Luxury car boom: Six vehicles over Rs. 50 lakh (US$ 58,497) sold every hour in India in 2024

India's luxury car market has witnessed a significant surge, with sales of vehicles priced above Rs. 50 lakh (US$ 58,497), rising from two every hour five years ago to six in 2023. This growth reflects a sharp rebound in demand at the premium end of the market and the expanding affluent class in the country. Luxury carmakers are optimistic about 2025, planning to introduce over two dozen new models, with total sales expected to cross 50,000 units for the first time. Key players like Mercedes-Benz and Audi foresee steady growth driven by a favourable business environment, robust earnings, and positive consumer sentiment. While Mercedes-Benz is likely to close in 2024 with record sales of around 20,000 units, BMW has also reported strong growth. However, Audi faced a sales decline in 2024 due to supply chain issues but plans a strong comeback in 2025 with a refreshed product lineup.

India's luxury car market accounts for just over 1% of total vehicle sales, the lowest among major economies. However, the country's growing wealth offers immense growth potential. According to Knight Frank's "The Wealth Report 2024," India is set to see the highest global growth in ultra-high-net-worth individuals (UHNWIs) between 2023 and 2028, with their numbers expected to rise by 50% to nearly 20,000. This wealth expansion, alongside India being home to one of the highest numbers of billionaires globally, is expected to fuel further growth in the luxury car segment.

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