Boom in sales of luxury cars in India

Business: Super luxury car sales in India are set to surpass previous records for the third consecutive year. Currently, Lamborghini has sold all the units allocated for India from its Italian headquarters, meaning any new orders will only be fulfilled in 2026 or later. Lamborghini’s lineup in India includes the Huracan, Urus and Revuelto, priced between Rs 5 crore and Rs 10 crore on-road. Similarly, Ferrari, McLaren and Aston Martin are experiencing strong demand in the Indian market. Mercedes-Benz and Audi’s high-end models, such as the AMG G 63 and RS Q8, have waiting periods of up to a year, priced between Rs 2.5 crore and Rs 4.55 crore on-road. In the super luxury segment, sales more than doubled to 1,000 units in 2023, and industry experts predict this year’s figures will reach between 1,200 and 1,300 units. An Economic Times report quoted Lamborghini chief executive officer (CEO) Stephan Winkelmann as saying that this surge in demand in India is attributed to a “generational mindset”, which he believes is fuelling a rise in consumption of luxury goods. “It’s a market that’s growing,” Winkelmann said. According to Knight Frank’s latest wealth report, India is emerging as one of the fastest-growing markets for ultra-wealthy individuals with a net worth of over $30 million, with the number expected to grow to 19,908 by 2028, up from 13,263 in 2023, the ET report said.

Winkelmann added that

the luxury sector in India has not yet reached the levels seen in other major markets, indicating significant potential for expansion. The report said Lamborghini sold 103 vehicles in India in 2023, marking a 12 per cent growth over the previous year. They expect this performance to be surpassed in the current year, as India is one of Lamborghini’s fastest-growing markets. Meanwhile, sales in the mainstream automotive market slowed by about 7 per cent in the first half of this year, totalling 2.16 million units. A sharp decline was seen in July, with sales falling 2.5 per cent, although this decline has not affected the high-end market segment, the report said. Yadur Kapoor, founder of Select Cars, which deals in Lamborghini and Ferrari, was quoted as saying in the report, “There is no pressure. The economy is doing well; stock markets are booming. India is on its way to becoming a $4 trillion economy. Indians are getting richer and they want to enjoy life.” Winkelmann said the government’s focus on expanding infrastructure and strong economic growth will boost consumption in the luxury sector. He said Lamborghini is constantly monitoring the market for changes in trends and potential developments in the luxury industry. We are not only analysing the automotive sector but also exploring other luxury goods, the Lamborghini CEO said.