Luxe drive: Cars with price tag of over Rs 1 0 lakh corner record 4 1 % of market

NEW DELHI: ‘Cheap and best’ is no longer the favorite mantra of Indian car customers. Panoramic sunroof, driver support units, 360-degree digicam, large infotainment screens, cruise management, 6 airbags – these are just some of the ‘must-haves’ that an Indian auto customer is demanding now.
The Indian customer is heading premium, and how. Income of vehicles costing upwards of Rs 10 lakh climbed to a record 41% of overall volumes that had been offered in 2022. This a significant soar from 2018 when the 5.4 lakh autos marketed in this cost bracket accounted for 16% of the pie. Now, the quantity of top quality cars is estimated at 15.5 lakh models when business sales are pegged at about 38 lakh units.
All this when the bottom conclusion of the market, comprising entry-degree versions such as the Maruti Alto and the Renault Kwid, shrank as inflation and mounting desire costs kept to start with-time purchasers absent. In simple fact, a lot of customers have opted for an aspirational buy, preferring a extra element-loaded next-hand auto alternatively of a new entry-stage model.
The share of entry-stage small automobiles has shrunk from 11.7% (3.9 lakh models) of marketplace income in 2018 to 6.8% in 2022 (1.4 lakh motor vehicles).
So, which are the premium cars and trucks that are staying lapped up by the industry? A greater part of these are SUVs this sort of as the Mahindra Scorpio-N and XUV700, Tata Harrier, Hyundai Creta and Tucson, Kia Seltos, MG Hector, Toyota Fortuner and Innova, Skoda Octavia (sedan), apart from the luxury ones from providers these kinds of as Audi and Mercedes-Benz.
No demand fatigue in top quality-vehicle market
The need in the premium conclusion of the industry is not exhibiting any symptoms of exhaustion, as shoppers queue up for new launches, ensuing in a very long wait and the automobiles becoming offered over the sector expense by some dealers to make illegal gains.
Even luxury electrics are finding an equally strong traction, as can be found from the very good need for automobiles such as Kia EV6 and Mercedes EQS.
Firms these types of as Maruti, recognised as the ‘people’s carmaker’ thanks to the benefit-for-dollars motor vehicle line-up, are recognising the pattern and are seeking to enter the high quality club, states Shashank Srivastava, director of income and marketing and advertising at the enterprise.
With not much traction in its bread-and-butter ‘practical cars’ portfolio, the company is now gunning for top quality shoppers with solutions this sort of as the Grand Vitara (developed in partnership with Toyota) and the quickly-to-be-launched Jimny (competitor to Mahindra Thar).
Tarun Garg, director (profits and advertising and marketing) at Hyundai India, claimed that “aspirational has replaced purposeful” as a relatively more youthful automobile obtaining population hits the industry. “The new customers are wanting at the bigger trim. Men and women now want layout, connectivity, basic safety and a large amount of frills,” he claimed.
For Hyundai, the share of autos priced upwards of Rs 10 lakh now stands at 45%, bigger than the sector common.