Industry experts are of a view that cheaper luxury cars, which are mainly offered between a price bracket of Rs. 20 lakh and Rs. 30 lakh, will soon garner 25 per cent market share of the luxury car space of the Indian auto market. This statement has been issued in lieu of the fact that a number of overseas auto giants are planning to introduce their new entry level luxury models to lure the attention of domestic buyers. As a result, the entry segment of luxury cars is anticipated to grow significantly, as per the main players of the segment.
Expressing his views on this, Michael Perschke, Head Audi India, was quoted as saying, “The entry segment currently contributes about 15-17% of the overall luxury car sales. We expect it to go to at least 25 per cent or may be more by next year. Today, we start at Rs. 27.70 lakh for the Q3. But if we could bring the Q3 around to the Rs. 25 lakh price bracket, I can get a buyer who is otherwise intending to buy a Rs 20-22 lakh hatch or sedan. Cars like the Captivas, CRVs, Koloes, Outlanders... are the ones that may suffer.”
He further said, “Well, even the Accords and Camrys are under pressure. Today, that market is completely gone to Mercedes, BMW, Audi as people have shifted from Japanese brands to German brands.”
The German trios, Mercedes-Benz, Audi and BMW play a major role in the luxury car segment of the Indian car market. The recent launches of Mercedes-Benz include the likes of of B-Class Diesel, which has been offered with a price tag of Rs. 22.6 lakh. Following this successful launch, the auto maker is now planning for the ceremony of E 63 AMG, which is scheduled for July 25. On the same lines, BMW is also expected to launch its 1 Series hatchback before the end of 2013 and Audi will introduce its A3 sedan in the first half of 2014
It must be noted that all the above mentioned models will be placed in the entry level premium car segment. This trend was started with the launch of BMW X1, the first premium compact Sports Utility Vehicle (SUV), which was offered with a price tag of sub-Rs. 30 lakh. It was then followed by the Audi Q3 within almost same price range.
The Managing Director and President of Mercedes Benz India, Eberhard Kern said, “We are quite convinced that this segment will make a significant contribution to the overall luxury car sales going ahead. With the launch of volume products this year, we expect a double-digit growth in our sales.”