Young India Checks Into High Street

A desire for higher-end, customised products among younger consumers and changing cultural paradigms are pushing the domestic luxury market.

- ARNIKA THAKUR

A FEW YEARS AGO, about a quarter of the cars Mercedes-Benz sold in India were entry-level vehicles. Now, 25% are from the top-end of its product line, with 60% priced over ₹70 lakh.

“The maturity of the luxury consumer is changing from just owning brands to owning higher-end luxury products,” says Santosh Iyer, MD and CEO, Mercedes-Benz India. Another emerging trend is customisation, with 73% of top-end cars being customised by the automaker’s personalisation label, Manufaktur..

This year, the luxury carmaker has launched five models in India, and plans to launch seven more, including the top-end ESQ Maybach SUV and the Long Wheelbase E-Class.

In FY24, the German automaker sold a record 18,123 units in India, up 15% year-on-year. Meanwhile, rival BMW sold 22,940 units (14,172 units in 2022). Audi India sales jumped 89% YoY to 7,931 units during the year.

Indian luxury consumers are not just showing a penchant for expensive cars. Luxury sales across real estate, and fashion goods, including clothing, makeup, and accessories, are booming as well.

Take real estate, for example. According to consultancy firm Anarock Property Consultants, 58 ultraluxury homes (priced over ₹40 crore) were sold across seven cities for a cumulative ₹4,063 crore in 2023 (till November 30), against 13 ultra-luxury homes sold for a total sales value of ₹1,170 crore in the previous year.