May 12, 2021

Luxurious automobile gross sales witness sharp fall in 2020, worst decline as lockdowns take toll on demand

NEW DELHI: Luxurious automobile gross sales in India fell by about 40% in 2020, their steepest decline, because the nationwide lockdown to curb the unfold of Covid-19 slowed financial exercise and lowered demand.

By the top of 2020, the business estimates 20,000-21,000 luxurious vehicles can be bought in contrast with 34,000-35,000 models bought in 2019.

In line with Santosh Iyer, vice-president (gross sales and advertising) at Mercedes-Benz India, whereas demand has improved since September, the tempo of restoration caught the carmaker unawares and impacted retail gross sales on the finish of the yr.

“Six months in the past, we had not anticipated such a fast restoration. We function on an extended lead and we are actually not in a position to produce as a lot to promote after robust restoration in October and November,” Iyer stated.

The corporate has a ready interval of as much as three months for its SUV GLE, GLS and GLC (petrol variant) fashions. And although macro-economic uncertainties persist and there are challenges stemming from hostile foreign exchange actions, Iyer stated Mercedes-Benz is “cautiously optimistic” of development prospects within the new yr.

Audi, too, is optimistic in regards to the development potential in India and can drive in new fashions for younger, first-time automobile consumers to enhance gross sales in 2021.

“We’re optimistic in regards to the yr 2021…We are going to kickstart 2021 with the launch of one among our bestselling fashions in January, adopted by different new merchandise throughout classes, physique kinds and new applied sciences,” stated Balbir Singh Dhillon, head of Audi India, with out disclosing particulars. BMW, India’s second-largest luxurious automobile maker, recorded a gradual restoration in gross sales after the lockdown and stated whereas volumes will decline this yr, the luxurious automobile market in India ought to rebound in 2021.

“Since July, we now have seen a gradual enhance in enquiries, showroom visitors, buyer interactions… We count on This fall to be good however volumes this yr can be decrease than 2019. The market ought to get well in 2021,” BMW Group India president Vikram Pawah advised ET not too long ago. He stated if the federal government had been to rationalise the tax construction on luxurious vehicles, it might allow the business to develop quicker, add worth and contribute to the nationwide financial system.

At Swedish luxurious carmaker Volvo’s India unit, month-to-month gross sales are actually fairly near 2019 ranges. “We had an excellent festive interval and our month-to-month gross sales are actually fairly near 2019 ranges. We have now seen a robust demand for our high-end luxurious SUVs, XC60 and XC90, other than the entry-level XC40 and likewise S90,” an organization spokesperson stated.