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CHENNAI: The affluence car market, angled to abound at a jaw-dropping 70-80% this year, has asperous the abatement abundant bigger than accumulation bazaar cars. While the all-embracing commuter agent industry is acceptable to end this year with a bald 6% growth, the affluence car bazaar will still administer a advantageous 45-50% growth, say industry insiders.



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Between the three of them, Mercedes Benz, BMW and Audi is acceptable to alarm about 22,000 units this year, up from about 15,000-16,000 aftermost year. However, that account is able-bodied beneath the appraisal fabricated at the alpha of the year and the all-embracing ambit has biconcave due to collapsed advance in the aftermost three months. Luxe car brands are acquisitive new launches and an advancing advance into tier-2 markets will accumulate the advance adventure intact.



“The all-embracing affluence bazaar advance bedeviled by the big three – BMW, Mercedes Benz and Audi – should be in the arena of about 50% this year,” says Vidur Talwar, MD, T&T Motors. “The advance was abundant bigger in the aboriginal six months of the year but has been abundant lower back August.”



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Although the affluence articulation isn’t as acute to aggrandizement as the accumulation bazaar cars, the all-embracing abatement in affect has hit demand. “Since 75% of affluence cars are now financed, accretion absorption ante accept hit demand,” says Talwar. “Also, best luxe car buyers are additionally absolute acreage buyers and that’s area the absorption compression hurts more. The rupee abrasion has additionally pinched.” and the all-embracing affect is not as afloat as aftermost year. All of that has added up,” he says.

The acceptable news, though, is that a brace of cardinal launches accept revitalised the luxe bazaar and the about 50% amble would not accept happened otherwise. BMW’s cool acknowledged X1 SAV (sports action vehicle) hit the candied atom and is acceptable to advertise about 2,500-3,000 units this year. Without the X1’s contribution, the absolute luxe bazaar would accept managed alone about 30% growth. Add to that Audi’s acknowledged Q5, which forth with added abiding mates like the Q7, has helped the aggregation accord an accomplished achievement alike in a lacklustre ages like November.

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Rakesh Batra, arch of Ernst & Young’s auto convenance in India, says, “The affluence car bazaar seems to accept airy the abatement and this is as accurate of automobiles as of added affluence products. But, in cars the advance has appear on what is still a actual baby base, so back car companies accept launched new products, the bazaar has grown. Additionally this articulation is beneath afflicted by the accepted bread-and-butter environment, so it’s easier for it to blade the downturn.

“Audi’s 5,117 assemblage sales from January-November has helped it beat its anniversary sales ambition for the year in the aboriginal 11 months, registering 83% growth. In November, it clocked 66% advance affairs 425 cars compared to 256 aftermost November. In comparison, bazaar baton BMW and archrival Mercedes Benz accept added bashful advance rates, admitting still leagues advanced of the accumulation bazaar brands. Mercedes Benz India was ‘positive’ in the additional bisected of 2011, clocking 31% advance year-on-year in the January-November aeon with 6,698 units, up from 5,110 units aftermost year. BMW, which hasn’t appear November numbers yet, clocked 8,042 units in the January-October period, a advance of 70%.

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Alike cool affluence brands like Rolls Royce apprehend a appropriate achievement this year, clocking over 100 cars while Tata Motors-owned Jaguar Land Rover is accepted to alarm about 1,300 units, up from aloof beneath 900 units aftermost year.

Auto marketers say the advance appear tier-2 markets has helped luxe brands survive the downturn. While Audi is aberration out to markets like Coimbatore and Lucknow, Mercedes Benz has broadcast its arrangement to cities like Raipur & Nashik. In November, the aggregation inaugurated new accessories in Ahmedabad, Chennai, Ludhiana and Mumbai. Getting into leasing business and pre-owned cars has additionally helped addition demand.

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Last Updated: October 16th, 2018 by admin2
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