India Luxury Car Market Size

Market Size of India Luxury Car Industry

Study Period	2018 - 2028
Base Year For Estimation	2021
Forecast Data Period	2024 - 2028
Historical Data Period	2018 - 2020
CAGR	6.40 %
Market Concentration	High
Major Players *Disclaimer: Major Players sorted in no particular order

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India Luxury Car Market Analysis

The Indian luxury car market studied was valued at USD 1.06 billion in 2021. It is expected to reach a value of over USD 1.54 billion by 2027, registering a CAGR of more than 6.4% during the forecast period 2022-2027.

With the spread of COVID-19, the sales of luxury cars were affected due to lower footfalls in the showrooms. Various automobile manufacturers were forced to temporarily shut their production as the supply chain was disrupted by the country-wide lockdown imposed by the government, which restrained the market growth.

Over the long term, as luxury car manufacturers are launching multiple models with various price ranges and user-friendly financing schemes, the demand for luxury cars is expected to rise in the country. Moreover, the demand for luxury SUVs has been growing rapidly in the country and is expected to continue during the forecast period, as they offer extra space and comfort. Major luxury car manufacturers like Audi, BMW, and Mercedes are planning to launch new luxury models in the country at a competitive price.

Besides these factors, the growing popularity of electric cars supported by active launches and future strategies of key players in the market are expected to further support demand in the market during the forecast period. The market is also supported by new entrants into this electric luxury space in India. For example, Jaguar ventured into the Indian EV space with its first all-electric car, I-PACE. Audi made its EV debut in India with the launch of the Audi e-tron and e-tron Sportback. Both the cars are available in the 55 Quattro variant, while the standard e-tron gets a lower-spec 50 Quattro trim too.

India Luxury Car Industry Segmentation

The term luxury is used to categorize vehicles that are equipped with better performance capabilities, lavish interiors, and all the latest safety and technology features. The Indian luxury car market covers all the latest R&D initiatives. Investments are made by the government and vehicle manufacturers across the country. India's Luxury Car market is segmented into vehicle type, drive type, and price range.

Based on the vehicle type, the market is segmented into Hatchback, Sedan, and SUV. Based on the drive type, the market is segmented into IC Engine and Electric. Based on the price range, the market is segmented into INR 20 Lakh – 50 Lakh, INR 50 Lakh – 80 Lakh, and Above INR 80 Lakh. For each segment, market sizing and forecast have been done on the basis of value (USD billion).

By Vehicle Type
		Hatchback
		Sedan
		SUV

By Drive Type
		IC Engine
		Electric

By Price Range
		INR 20 Lakh - 50 Lakh
		INR 50 Lakh - 80 Lakh
		Above INR 80 Lakh

India Luxury Car Market Size Summary

The Indian luxury car market has experienced significant growth, with the market value expected to increase over the next few years. This growth has been influenced by various factors, including the launch of new models by luxury car manufacturers, user-friendly financing schemes, and the rising demand for luxury SUVs. However, the COVID-19 pandemic has negatively impacted the market, causing a decrease in sales due to lockdown restrictions and supply chain disruptions. Despite this, the market is expected to recover and continue growing in the long term. Additionally, the luxury electric vehicle market in India is gaining popularity, with major luxury car manufacturers launching new models and state governments providing incentives for electric vehicle manufacturing. This shift towards electric vehicles is driven by increasing environmental concerns and tightening emission norms. The market growth is further supported by the development of next-generation intelligent mobility technologies by luxury car component manufacturers. Key players in the Indian luxury car market include Mercedes-Benz, BMW, Audi, Jaguar Land Rover, Lexus, and Volvo.

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India Luxury Car Market Size - Table of Contents

1. MARKET DYNAMICS
1. 1.1 Market Drivers
2. 1.2 Market Restraints
3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis
  1. 1.3.1 Bargaining Power of Buyers/Consumers
  2. 1.3.2 Bargaining Power of Suppliers
  3. 1.3.3 Threat of New Entrants
  4. 1.3.4 Threat of Substitute Products
  5. 1.3.5 Intensity of Competitive Rivalry
2. MARKET SEGMENTATION (Market Size Value - USD billion)
1. 2.1 By Vehicle Type
  1. 2.1.1 Hatchback
  2. 2.1.2 Sedan
  3. 2.1.3 SUV
2. 2.2 By Drive Type
  1. 2.2.1 IC Engine
  2. 2.2.2 Electric
3. 2.3 By Price Range
  1. 2.3.1 INR 20 Lakh - 50 Lakh
  2. 2.3.2 INR 50 Lakh - 80 Lakh
  3. 2.3.3 Above INR 80 Lakh

India Luxury Car Market Size FAQs

What is the current India Luxury Car Market size?

The India Luxury Car Market is projected to register a CAGR of 6.4% during the forecast period (2023-2028).

Who are the key players in India Luxury Car Market?

AB Volvo, JAGUAR LAND ROVER LIMITED, AUDI AG, Mercedes-Benz AG and BMW AG are the major companies operating in the India Luxury Car Market.

India Luxury Car Market Size (2024 - 2029)