Motown, slowtown: Luxury car sales slow in line with broader slowdown in Indian auto market
car sales slowed in the first half of the year with combined sales at Mercedes-Benz, BMW and Audi growing 5.5% from a year earlier to 18,843 units, according to data from companies. This compares with a 23% on-year increase in the first half of 2023 at 17,869 units.
Carmakers attributed the sluggish performance to a broader slowdown in the Indian car market, besides intense heat waves this summer, and an extended general election. Some experts also cited a shift in spending by the wealthy to experiences such as bespoke holiday itineraries.
Luxury automakers are hoping to post a recovery in the second half, which will feature the festive season starting in September with Ganesh Chaturthi and Onam, and peaking with Dussehra and Diwali in October-November. This period is the most crucial for consumer durables like cars, accounting for 30-35% of annual sales.
«The luxury car industry saw a single digit YoY growth in H1 2024, with Q2 getting impacted by factors like seasonality, summers, polls,» Santosh Iyer, MD & CEO, Mercedes-Benz India, told ET.
Down Every Month in 2024
«We expect luxury industry growth in H2 2024 on a higher side, given the upcoming festivities and new launches,» he said.
He forecast that introduction of half a dozen new models over the next few months will help the German automaker close the year with a double-digit sales growth, in line with the domestic luxury car market.
ET has learnt that a luxury carmaker faced issues obtaining certification from the Bureau of Indian Standards (BIS),
