India’s growing number of millionaires is driving luxury and super luxury car sales. In the territory, luxury and super-luxury cars are showing stable growth, while the small and midsize passenger car segments are stagnating.
Passenger car sales increased 9.1 percent in May to 96,922 units from 88,863 in the same month a year earlier. By contrast, premium and super-luxury brands such as Nissan, Skoda, Mercedes Benz and Rolls Royce have seen steady growth. Skoda’s flagship sedan, according to a company statement. However, Skoda’s total car sales, including the economy and premium segments, fell from 1,000 to 810 in the same period.
To emphasize, only 0.01 percent of India’s population is in the super-rich group, compared to 1.29 percent in Japan and 1.48 percent in Singapore. But the millionaires are significantly helping the luxury segments of the territory.
Daimler-Chrysler India, makers of Mercedes Benz product lines, previously shifted from importing fully built units (CBUs) to making cars locally from fully knocked down units (CKDs). According to sources, Mercedes Benz sales have increased by more than 100 percent in the last three months since it started launching CKD units.
This year, Mercedes launched two new models, including the new Rs 1.7 million CL-Class and the new diesel S-Class. There was a high demand for these cars in the central and eastern parts of Maharashtra, the sources said. But Daimler-Chrysler does not release sales figures as a matter of policy.
The Mercedes-Benz CL-Class, a grand tourer, is currently available in two models: the CL500 / CL550 and the CL600. The S-Class, on the other hand, is the world’s best-selling luxury flagship sedan. The car has advanced transmission technologies, safety systems, and interior features. Surprisingly, the car introduced the first anti-lock brakes, seat belt pretensioners, supplemental airbag restraint systems, and electronic stability control. The latest generation, the W221, debuted in 2005 with a completely new design. The latest S-Class is sold in standard and long wheelbase versions and offers V6, V8, V12 and diesel powertrains.
“Increasing interest rates has less of an impact on luxury car sales compared to economy cars. The reason for this is that luxury car buyers take finance for considerations like tax planning, not because they need the money, while the economy car buyers take financing because they really need the money, “said Ashwin Sanghi, director of Sanghi Motorcar Co, Mercedes Benz dealerships.
Nissan Motor Co., another automaker that sells only premium cars in India, has seen a significant increase in orders for the new Teana. “Since its launch in April, the Teana has crossed three figures in orders,” said a source familiar with the Japanese automaker’s operations. However, the official confirmation of the orders was not available.
The Nissan Teana is a front-wheel drive midsize car introduced in 2003. It is exported as Nissan Maxima and Nissan Cefiro to some markets. This is done so as not to be confused with the Nissan Maxima sold in North America. It shares the same platform with the North Americans Maxima and Altima, as well as with the Presage.
The Teana is equipped with Nissan’s sleek mirror and body parts. It is powered by a 2.3 or 3.5 liter engine that matches the automatic transmission. The trim levels are 230JK, 230JM, 230JS, and 350JS. The car is also sold in Russia and Ukraine.
Separately, the Japanese automaker will introduce a new audio feature that can play music stored on an iPod through its CARWINGS-compatible HDD navigation system via Bluetooth wireless technology. It will first be available on the new Presage and will become a standard feature for all upcoming new models in Japan.