Luxury vehicle sales in India: Luxury vehicle sales in India recorded strong double-digit growth in the first half of 2022
The industry estimates that around 17,000 luxury vehicles were sold in the country between January and June 2022, a 55% increase from the 11,000 units sold a year ago. Senior industry executives said given the demand, companies are working hard to ease supply constraints and ramp up production in the upcoming holiday season.
German luxury carmaker Mercedes-Benz India posted its highest second-quarter sales in the country on the back of new product launches and buoyant demand for existing vehicles. Last quarter’s record sales were achieved despite significant headwinds experienced in the form of continued challenges on the global supply side, resulting in longer wait times and continued increases in operating costs.
Overall, the company increased retail sales by 56% to a record 7,573 units in the first six months of the year. Martin Schwenk, Managing Director and CEO of Mercedes-Benz India, told ET: “The first half was among our best, with the exception of the first half of 2018. What helped overall was a strong product pipeline, uninterrupted customer demand Despite some macro concerns, we have not seen any negative impact in recent weeks.”
However, supply constraints continue to cause production delays and shortages. Mercedes-Benz ended the second quarter of 2022 with the highest ever order bank of more than 6,000 units, compared to 4,000 vehicles at the end of the first quarter of 2022.
Mercedes Benz said that although it expects the shortage of semiconductors to continue in the coming months, it will strive to increase production and deliver cars to customers and reduce the period waiting.
“We have a strong order bank of over 6,000 cars, which makes our market outlook very positive,” Schwenk informed, adding, “We are trying to increase our production to meet demand. But even with these constraints supply, we believe this could be the best year ever for Mercedes in India.” The automaker previously recorded record sales of 15,538 units in 2018.
Rival BMW also posted record sales of 5,570 cars (including 379 units from MINI) in the country in the first half of the year. “Despite the turmoil caused by various factors in the domestic and international market, we achieved the best half-year performance ever for BMW, MINI and BMW Motorrad. The majority of products are sold out and we are doing our best to meet the huge demand. The order books are full and the pipeline for the coming months is quite strong,” Vikram Pawah, president of BMW Group India, said last week.
Luxury vehicle sales rebounded from the pandemic and rose 40% to around 25,000 units in 2021. Mercedes Benz increased sales by 42.5% to 11,242 units, albeit from a low base, to maintain its leading position in the luxury car market for the seventh consecutive year. in 2021. The company aims to maintain the growth momentum by launching 10 new products this year.
At its peak, around 40,000 luxury vehicles were sold in the local market in 2018.