According to a top official of German auto major Audi, the coronavirus (Covid-19) epidemic has hit hard the luxury car segment in India, by pushing it back by five to seven years. It will, however, take around two-three years to reach the levels observed in the year 2014-2015.
Moreover, in the year 2015, the luxury car sales in India stood at around 31,000 units, while it was at around 30,000 units in 2014.
Audi India Head Balbir Singh Dhillon told PTI, while we all are saying that sales are growing and there are positive segments and we will also grow next year, the base has become lower. It is not going to reach those levels promptly next year and the coronavirus pandemic has literally taken us back by 5-7 years. Dhillon also said that the entire automotive sector has taken a big hit this year and also even the last year was a degrowth year for the luxury car segment. So, from next year it is going to start, in terms of volume growth.
The Indian luxury car market which consists of the top 5 competitors- Mercedes, Audi, BMW, JLR, and Volvo is approximated to have sold nearly 35,500 units in 2019 down from 40, 340 units in 2018.
Besides, the economy for sure is going down but every impression shows that there will be a V-shaped improvement in 2021 on the base of a lower economic activity this year, which will therefore definitely boost the market.
In a statement Dhillon said, the demographics of India with 65 per cent of the population under the age of 35 are those individuals who are ready to experiment and who do not believe in only saving but also in spending. So for them, exposure and learnings matter more than possession of goods. Lastly, these are, however, all positive things that we think will continue to give positive energy to the automotive/automobile energy.