Has the slowdown hit luxury carmakers harder? The segment, which outpaced the overall car industry last year with above 40% growth, has turned into a laggard in the last four months.
When passenger vehicles —cars and utility vehicles — showed a 10% growth in April-July period at 865,603 units, luxury carmakers such as BMW, Audi,Mercedes Benz together showed a 2.5% decline.The combined sales of these German carmakers, who command 85% of the Indian luxury car segment, lowered from 7,090 for the same period last year to 6,920 units this year.
In April-July period, BMW sales dropped 14% while Mercedes Benz declined 24%. However, the 45% surge in Audi sales, mainly on account of recently launched compact SUV Q3, arrested overall double digit decline in luxury car sales.
“We and Jaguar Land Rover are the only luxury carmakers who have grown this year,” said Michael Perschke, managing director, Audi India.
Making inroads into the German-dominated luxury car market, Tata-owned Jaguar Land Rover has sold 693 units this financial year so far. The company built 273 units in its Pune plant from April.
However, all luxury carmakers including BMW, Audi, Mercedes Benz and Jaguar Land Rover find growth slowing in India as slow cash flow and low business sentiments grip the premium car market.
From 40-50% growth in the last two years, the segment seems to have entered a slow growth phase this year.