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Luxury Car Sales Dip For The First Time
Recent reports from the German luxury carmakers suggest their sales are finally going down. Their customers are opting for their less expensive entry level models rather than the high-end variants. The X1 SUV was BMW highest selling model in July. The X1 costs about RS.22 lakhs which is quite inexpensive when compared with BMW's luxury sedans.
Mercedes-Benz has reported its first fall in monthly sales in three years. Audi has also said its sales of its top end models had declined. Several Audi customers are preferring to buy the A4 sedan which has a starting price of RS.27.18 lakhs. Sales of Audi's other premium model, the Q7 has also declined. Audi India has confirmed that sales of its models priced above Rs.30 lakhs had dropped considerably.
The Society of Indian Automobile Manufacturers (SIAM) has stated that luxury car sales grew at a rate of 50 per cent during the first four months of this fiscal year. Luxury car sales did not achieve a higher growth rate due to the lacklustre performance of flagship models such as the Audi A8, Mercedes S-Class and BMW 7-Series. Exotic models such as the Audi R8, Mercedes-Benz E-Class Convertible, SLR Roadster and the BMW 6-Series convertible which are all priced above Rs.1 crore have also not set the market on fire.
If luxury car sales continue to follow current trends, carmakers might decide to reduce prices by bringing down the number of standard equipment. BMW which is India's highest selling luxury carmaker will have to re-invent itself to maintain it top spot. With Tata Motors aggressively pushing for Jaguar and Land Rover in India, The German luxury carmakers can be rest assured that competition will increase further.
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