Reuters.- A senior official of the German company Mercedes-Benz is betting that the growing number of young millionaires will increase the demand for luxury cars in India and increase sales faster than mass market vehicles, a senior company official said.
Martin Swenk, CEO of Mercedes-Benz India, said the growing number of “dollar millionaires” in India include young entrepreneurs or high-income professionals who appreciate the luxury and technological components of cars.
“The base is expanding and slowly going beyond our traditional customers,” Shweng said Reuters In a recent interview in Pune, the western industrial city where Mercedes India is headquartered and manufacturing.
“In the future we will see higher growth rates in the luxury segment than in the mass market,” he said, adding that the average age of buyers has dropped from more than 45 to less than 40.
However, the biggest obstacle to the growth of automakers was the shortage of semiconductors and the logistical problems exacerbated by the Russian invasion of Ukraine. According to Mercedes India, this has pushed back orders for 4,000 units, Schwenk said.
According to Hurun India Wealth Report 2021, start-up hysteria and Indian stock market boom are creating a new race of rich people who are frolicking on luxury brands like Rolex, Louis Vuitton and Gucci.
The number of Indian households with a net worth of at least $ 1 million is projected to increase by 11% to 458,000 by 2021 and is expected to grow by 30% over the next five years, the report said.
India is largely a market for small, low-cost cars, with luxury models accounting for only 1% of the total annual sales of about 3 million.
According to car market data provider JATO Dynamics, Mercedes is the best-selling luxury brand with over 40% market share and competes with Tata Motors’ Audi, BMW and Jaguar Land Rover.
Its sales in India increased by more than 40% from 11,242 units in 2021 to 7,893 in 2020, which was affected by the epidemic.
However, high-end models like the GLS, S-Class and GLS Maybach saw 80% growth, all of which were priced at Rs. Priced at over $ 10 million ($ 131,337).
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