Spurt in demand for luxury cars despite Covid-19 blues
This surge in demand comes at a time when a shortage in semiconductors and shipping containers have impacted the production schedules of automakers ac
There is a sudden, swift surge in demand for luxury cars. Even as the economy is still recovering from the devastating second wave of the Covid-19, the demand is rising and orders are piling up. Mercedes-Benz India, India’s largest luxury car-maker, saw a much-faster recovery after the second wave compared to the first one in the previous year. Some of the most extravagant models of Mercedes Benz, such as S-Class, GLS and AMG, are almost sold out for the current year and the company will be able to resume deliveries either by December or later.
Industry view
Santosh Iyer, Mercedes Benz’s VP, marketing and sales, said the demand for cars in the Rs 1-cr plus segment like AMGs, Maybachs, GLS-es, has not only returned but is one of the highest that the company has ever seen. Iyer added that their customers run big businesses and work in large corporate firms which have made good earnings despite the pandemic.
The same sentiment is also reflected in the stock market. Buyers have more confidence now to purchase luxury products. In addition to this, corporate India has slashed its debt leading to an increased risk appetite and a big growth in the luxury car segment.
Festival season hopes
Another luxury car maker Audi has also witnessed consecutive growth in sales and bookings across its product portfolio after restrictions were eased and dealerships resumed business. The Volkswagen-owned company has plans of achieving its pre-second wave sales by the end of the ongoing quarter.
Balbir Singh Dhillon, Head, Audi India, said the company has seen a steady growth in the last six months and it is expected to continue during the upcoming festival season. The major drivers for this demand surge are the reopening of their touchpoints, coupled with higher engagement and sales leads from their digitisation strategy. The highest demand was observed in Audi models A4, A6, Q2 and Q8, which continue to be the best-selling models. In the first quarter of 2021, Audi India reported better sales as compared to the same period in 2020.
This surge in demand comes at a time when a shortage in semiconductors and shipping containers have impacted the production schedules of automakers across different segments. This is expected to cause delays in deliveries and postponement of purchase plans. Most luxury car-makers are optimistic and expect to see a substantial growth during the upcoming festive season, given there is no resurgence of Covid-19 and disruption in business.