Why Have Luxury Car Sales in India Skyrocketed in 2023?

Luxury Car Sales Skyrocket in 2023

Notwithstanding high costs and downturn trends, over 9,500 luxury cars sold in 2023 in India.

In the March quarter of 2023, the first of the calendar year, sales of luxury automobiles in India continued to increase, reflecting unabated demand in a market segment largely unaffected by inflationary and recessionary concerns abroad.

According to industry estimates, more than 9,500 luxury vehicles were sold in India during the first three months of 2023, a nearly 10% increase compared to the same period in 2022.

Consistent domestic economic expansion accompanied by signs of moderating inflation and robust corporate earnings are fueling demand at the upper end of the market and bolstering sales of luxury vehicles.

A senior industry executive reported that demand for high-end vehicles priced above 1 crore was also increasing in the luxury segment. In fact, Mercedes Benz's sales of high-end models more than doubled in the first quarter, accounting for nearly one-third of all vehicles sold by the German automaker in Q1.

Mercedes-Benz India's sales increased by 17% to 4,697 units through March. It has a 4,000-wnit excess order backlog. BMW and Audi have not yet reported Ql sales in India. According to data on the Vahan portal of the ministry of road, transport, and highways, BMW's Q1 sales decreased 11% to 2,418 units, while Audi India's sales increased 63% to 476 units.