Luxury Car Market 2021 Expecting Huge Demand in Upcoming Years

luxury car market growth
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A four-wheeler is a necessity in today’s life, be it day-to-day commute or long-distance haul. Pre-owned exotic cars are gaining popularity rapidly, and the luxury car market expects huge demand in upcoming years. Reliability and comfort are two key factors while opting for luxury cars in India, and generation Z is always on the lookout for exciting options while buying a car. The luxury segment has become affordable due to the availability of new dealerships and an ever-increasing network of service centers. Be it BMW, Audi, Mercedes, and the like, car manufacturers have shifted their focus on affordability and accessibility to premium features.

The luxury car market is on the rise

Indian roads and highway infrastructure has improved manifold over the years, leading to smoother connectivity to remote, suburban areas and unexplored destinations. This has boosted the morale of luxury car manufacturers. According to a study conducted in the year 2020, the Indian luxury car market was valued at over $1 Billion and is expected to cross the $2 Billion mark by 2026. Pre-owned luxury SUVs are gaining more popularity in particular because of more space and high performance in tough conditions.

Why are people choosing luxury car brands?

The easy availability of pre-owned premium cars made it possible for people to try out these maintained cars first before going for the real deal. People choose luxury car brands because of better financing options, lower prices, and better facilities at dedicated dealerships. Dealerships like Mahindra First Choice offer rigorous testing on used luxury cars for sale, and paperwork is done seamlessly, which attracts consumers more than before. Key points highlighting the increasing demand are:

  1. Affordability of used luxury cars
  2. Smooth after-sales service by dedicated dealerships
  3. Easy availability of loans and finance
  4. Hassle-free paperwork
  5. No extra import tax or duty as compared to brand new luxury cars

Also read: How to buy your dream luxury car?

Future demand for luxury car brands

Used Mercedes Benz cars or pre-owned Audi cars are two of the most popular and affordable cars currently ruling the Indian market overall. The demand for other cars such as used Lexus or Porsche is more concentrated in big metropolitan cities where big businesses thrive well. The current Covid situation has proved to be a setback for luxury carmakers. Still, industry specialists are positive that the demand will rise owing to more affinity towards the personal vehicle and a wanderlust that will take over the youth after being locked into their houses for prolonged periods. According to an estimated projection, luxury car brands will see a rise in demand in the coming years which is attributed to the following factors:

  1. Top manufacturers introducing new features
  2. Relaxation on automobiles sale/purchase by the Indian government
  3. Better financing through different channels
  4. Attractive design and improved comfort
  5. Lower resale time of new vehicles, which means more pre-owned cars available than new ones

entry level luxury car

Entry-Level Luxury Cars in India

In this segment, entry-level luxury cars are covered. Let’s take a look at some of the popular cars to watch out for:

BMW 3 series:

The BMW 3 series is known for its sheer driving pleasure and powerful performance. The powertrain delivery ranges from 400Nm torque @188-255bhp to 500Nm @ 380bhp. The BMW 3 series sits between the price ranges of INR 44 lac to INR 63 lac. The updated design and exclusive added feature of the 8.8-inch touchscreen infotainment panel make it a go-to car for young enthusiasts. The mileage ranges between 12kmpl to 21kmpl shared between the petrol and diesel variants, making it all the more desirable for Indian conditions.

Audi A4:

The Audi A4 does not look very catchy to the eye, but this feature-packed ride is a must for people who prioritize comfort and power overlooks. Priced at INR 43 lac, it is quite affordable for business class individuals and does not fail to deliver what it promises. Its drive train is capable of dishing out a torque 320Nm @ 188bhp, with claimed mileage range of 12.3kmpl (for petrol variant) to 16.6kmpl (for diesel variant). The unique feature of this car is a 12.3-inch virtual cockpit which makes driving as exciting as ever.

Mercedes-Benz A-class:

Owning a Mercedes is a dream for most Indians as it is always known for its royal, high-status stature. The Mercedes-Benz A-class is priced lower than its counterparts but lives up to a reputation of comfort and luxury, which Mercedes is known for. Starting from INR 39.9 lac, this luxury sedan with its 2000cc engine dishes out a maximum torque of 250Nm @161bhp. This means that you get the right balance of power and mileage. The mileage is astonishing 21.35kmpl for the 2litre diesel engine, which is higher than most of its rivals. The MBUX infotainment system onboard is the key highlight which makes it a class apart.

Jaguar XE:

Complimenting style with aggression, the Jaguar XE is the go-to mean machine after BMW. It still remains a true driver’s car, and upgraded body styling adds icing to the cake. With a starting price of INR 46.7 lac, it is fairly competitive to its rivals, given the heavy built and safety features onboard this beast. This sedan generates a maximum torque of 365Nm and 430Nm for the petrol and diesel variants, respectively. The key highlight is the upgraded suspension system which enables seamless ride comfort.

Also read: 12 points about a used luxury car that no one tells you

Mid-Level Luxury Cars in India

In this segment, we will talk about some of the mid-level luxury cars in India, which are gradually gaining popularity as the market is expanding:

Volvo S90:

Volvo took almost a decade to replace the S80 model, one of the premium luxury sedans available in the market. Priced at INR 61 lac, this Swedish saloon offers a spacious cabin, unmatched ride comfort, and best-in-class luxury features such as 4 zone climate control and adaptive cruise control.

The S90 delivers a power of 187bhp and 400Nm torque through its 2-liter engine. This feature-packed car poses a tough competition to its rivals like BMW 5 series or Mercedes-Benz E-class.

Mercedes-Benz E-class:

The E-class is offered in three variants- Expression, Exclusive, and AMG Line. It is one of the few premium luxury cars which don a sporty look and refreshing style. The top variant is powered by a 6 cylinder 3000 cc diesel engine which delivers a whopping 282bhp power and a maximum torque of 600Nm. The 9G-TRONIC automatic transmission is a marvel in itself and delivers a power-packed driving experience like never before. The AMG Line has priced at INR 80 lac, while the range starts from INR 65 lac.

BMW 5 series:

This list is incomplete without the mention of the BMW 5 Series. It is another power-packed but more practical saloon that gives its competitors a run for their money. It is highly dependable and robust in all conditions whatsoever. The design remains unchanged based on the Cluster Architecture platform developed by the German manufacturer, and the 3-liter diesel engine with 8-speed automatic transmission makes it even better to drive. A dual-screen setup distinguishes the infotainment system, and additional rear display screens make it even more enjoyable for the passengers. The infotainment touchscreen and the instrument cluster both are 12.3 inches which makes the dashboard look even broader and robust. The top variant churns out 262bhp power and a maximum torque of 620Nm and is priced at INR 69 lac.

Land Rover Range Rover Velar:

Sleek, stylish, and sober- these three adjectives best define this premium SUV from Land Rover. It was introduced in the international market in 2017 and still remains a favorite among compact SUV lovers. It is still considered one of the safest SUVs in the market and doesn’t fail to impress at first glance. The minimalistic design and feature-laden interiors give it a sophisticated feel. The maximum power generated through the Diesel D300 engine is 296bhp and maximum torque of 700Nm, driving this car a unique experience. Interestingly, the Range Rover Velar derives its name from an old prototype conceptualized in 1969. This car is priced at a maximum price of INR 75.3 lac.

high end luxury car

High-End Luxury Cars in India

Coming to the last segment, we will take a look at some of the high-end luxury cars available for customers in India:

Mercedes-Benz G Class:

This SUV gained popularity in recent years, majorly because of its off-roading capabilities. The G-class is the longest-running version from Mercedes-Benz and is a perfect example of toughness combined with luxury. The exterior is rugged and aggressive like ever before, while the interiors are plush with a futuristic dashboard, luxury leather, and burl walnut trim. The heavy-duty G63 SUV comes fitted with a 4000cc V8 engine (twin-turbo) and propels at 577bhp power with a maximum torque of 850Nm through 9-speed automatic transmission. Priced between INR 1.6 Crore to INR 2.4 Crore, this luxury wagon is one of the most beloved SUVs for Indians.

Audi A8:

Audi A8 gained popularity only after 2018 when the company started offering full interior customization to its buyers. Elegance is the best adjective to describe this gadget-packed saloon, the key highlight being massage functions for the seats. The new improved 3 litre V6 engine sitting underneath the hood is silent, refined, and matched with the 8-speed automatic gearbox which makes driving thrilling and stress-free at the same time. Priced at INR 1.6 Crore, this sleek machine is a must-try for those looking for the unmatched thrill of the ride.

Volvo XC90:

The Volvo XC90, although priced lower in the premium luxury segment, has gained popularity because of its functionality. This ultra-modern SUV boasts a unique Thor’s hammer LED headlamp design, making it even more exciting in recent times. The interior is highly functional, sleek, and robust with a soothing ambiance. The key highlight is the 4 zone climate control with air purifier technology to make commuting even more comfortable and relaxing for the passengers. The 4 cylinders turbocharged 2000cc diesel engine is surprisingly silent and dishes out a max torque of 470Nm, and generates 225bhp power with a claimed mileage of 17kmpl. The XC90 has priced at INR 89 lac and is quite affordable in the premium luxury segment.

Land Rover Range Rover Vogue:

The Range Rover Vogue is the most luxurious SUV on offer by Land Rover. The new improved seats are wider and installed with more functional features which makes it a stand-out candidate in the premium luxury segment. The reclining rear seats are icing on the cake, complemented by ultra-luxury leather upholstery and wooden veneer finish. The best thing about the SUV is the engine options viz. a viz. a 3000cc V6 petrol engine, a 4400cc V8 diesel engine, and a top-of-the-line 5000cc supercharged V8 engine. All models are fitted with 8-speed automatic transmission which works smoothly even in the tough off-roading driving experience. This exotic SUV is priced between INR 2 Crore to INR 4.5 Crore.  

BMW 7 Series:

The flagship 7 series from BMW is fast garnering attention after the introduction of 745Le xDrive plug-in hybrid variant. Traditionally, both the petrol and diesel variants are already an eye candy, given the wider, low hung grille which makes a bold statement on the roads. The delectable leather upholstery, ambient lighting, air purifier and better sound insulation makes it a real luxurious ride which you wouldn’t want to leave without experiencing once in your lifetime. The 3000cc 6 cylinder petrol engine produces raw power of 286bhp, while the hybrid system delivers a whopping 384bhp and an unimaginable claimed mileage of up to 39.5kmpl. The BMW 7 Series is priced between INR 1.38 Crore to INR 2.5 Crore.

Read this: How to maintain your high-end used luxury cars and save your wallet a lot

Conclusion:

The Indian luxury car market will definitely witness a boom in the coming years as more and more people are looking for long-term reliability in these unprecedented times. Major car companies are optimistic about the scope of sales and the diversity of customer needs. All in all, we can say that the luxury and premium luxury car market will surely attract a lot of customers who wish to upgrade their ride without compromising on features and comfort. Stay tuned with us for more exciting news and market analysis in the upcoming days.

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