Luxury car market on course for all out performance and a record 2023

Despite macro-economic headwinds, India's luxury car segment is likely to hit a new peak of 43,000 to 45,000 cars on the back of a record orderbook and improved component supplies,

- Ketan Thakkar.

It is encouraging to note that the demand for luxury and super-luxury cars in India continues to remain unabated, despite a slowing economy and various macroeconomic challenges. Industry players in this category are bracing for yet another year of strong double-digit growth from the top end of the market.

According to several industry executives that Autocar Professional spoke with, the market is set to register a robust growth in 2023 with the total industry volumes likely to grow by 13-18 percent to about 43,000 to 45,000 units in the current calendar year, provided the semiconductor chip supply improves.

Mercedes-Benz India, the country’s largest luxury car maker posted its best ever January to March Q1 sales numbers at 4,697 cars, posting a 17 percent growth.

Santosh Iyer, MD and CEO, Mercedes-Benz India declined to give a specific number guidance for 2023, but told Autocar Professional, “The biggest silver lining is that demand is sustaining well. The enquiry levels are at a record high, if not for the shortage of chips, we could sell or deliver more (at least 10-20 percent). Also, there is a strong order book for 4,000 cars. The income levels of our core customer group have only gone up, be it corporates, salaried individuals or businessmen.”