Luxe drive: Cars with price tag of over Rs 10 lakh corner record 41% of market

NEW DELHI: ‘Cheap and best’ is no more time the favorite mantra of Indian car or truck buyers. Panoramic sunroof, driver assist techniques, 360-degree digicam, big infotainment screens, cruise management, 6 airbags – these are just some of the ‘must-haves’ that an Indian motor vehicle customer is demanding right now.
The Indian purchaser is likely top quality, and how. Product sales of autos costing upwards of Rs 10 lakh climbed to a document 41% of full volumes that had been sold in 2022. This a significant bounce from 2018 when the 5.4 lakh cars bought in this price tag bracket accounted for 16% of the pie. Now, the quantity of high quality cars is believed at 15.5 lakh models when business sales are pegged at around 38 lakh models.
All this when the base conclude of the marketplace, comprising entry-degree models these kinds of as the Maruti Alto and the Renault Kwid, shrank as inflation and rising desire costs held very first-time customers absent. In truth, several customers have opted for an aspirational buy, preferring a extra feature-loaded next-hand motor vehicle as an alternative of a new entry-amount brand.
The share of entry-degree tiny automobiles has shrunk from 11.7% (3.9 lakh units) of business income in 2018 to 6.8% in 2022 (1.4 lakh automobiles).

So, which are the premium cars that are currently being lapped up by the market? A the 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), aside from the luxury types from businesses this sort of as Audi and Mercedes-Benz.
No demand exhaustion in high quality-car or truck industry
The desire in the quality stop of the sector is not exhibiting any symptoms of fatigue, as customers queue up for new launches, ensuing in a prolonged wait around and the cars staying marketed around the industry expense by some sellers to make illegal gains.
Even luxury electrics are getting an similarly robust traction, as can be seen from the very good demand for cars these kinds of as Kia EV6 and Mercedes EQS.
Corporations this kind of as Maruti, recognized as the ‘people’s carmaker’ thanks to the value-for-income auto line-up, are recognising the pattern and are searching to enter the high quality club, says Shashank Srivastava, director of profits and promoting at the enterprise.
With not significantly traction in its bread-and-butter ‘practical cars’ portfolio, the enterprise is now gunning for high quality prospects with merchandise these kinds of as the Grand Vitara (created in partnership with Toyota) and the quickly-to-be-introduced Jimny (competitor to Mahindra Thar).
Tarun Garg, director (sales and internet marketing) at Hyundai India, stated that “aspirational has changed practical” as a somewhat young automobile getting inhabitants hits the market place. “The new clients are on the lookout at the higher trim. People right now want layout, connectivity, security and a large amount of frills,” he mentioned.
For Hyundai, the share of vehicles priced upwards of Rs 10 lakh now stands at 45%, increased than the field normal.