First, it was the COVID-19 pandemic, and then the resulting chip shortages and supply chain disruptions, that stymied the growth of the luxury car business worldwide, and also in India. However, with supply chains on the mend, semiconductor availability improving to a great extent and revenge buying still on the agenda for the well-heeled, 2023 has turned out to be a year to celebrate for luxury carmakers in India. Sales of luxury cars and SUVs in the country neared the 20,000 units mark in the first six months of the year, with the top four players cumulatively selling close to 19,000 vehicles between January and June.
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Unsurprisingly, it is Mercedes-Benz that continues to lead India’s luxury car market. Till the end of June, the Stuttgart-based firm sold 8,528 vehicles – its highest half-yearly sales in India till date. This was enabled by a record second quarter, which saw Mercedes sell 3,831 cars and SUVs between April and June. One of the most compelling stats from Mercedes’ sales performance this year is that in the first half, it sold over 2,000 vehicles it classifies as ‘top-end vehicles’ (TEVs). These include the S-Class sedan, GLS SUV, Maybach S-Class and GLS and the evergreen AMG G63. This means that nearly a quarter of Mercedes’ total India sales came from vehicles with on-road prices in excess of Rs 1.50 crore.
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Cumulative sales of luxury cars in India breached the 20,000 units mark in the first half of 2023.
The long-wheelbase E-Class remained Mercedes’ highest-selling model, while the GLE temporarily took over as the best-selling SUV in the Mercedes lineup, as the GLC is due for a generation change and stocks of the outgoing model were exhausted a while ago. Mercedes also reported a tenfold increase in sales of its battery electric vehicles, propelled by the launch of the EQB SUV and EQS sedan, but didn’t specify the exact EV sales volume. Over 210 Mercedes EVs have been registered across India this year, as per the latest registration data on the VAHAN portal.
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One in every four Mercedes vehicles sold in the first half cost over Rs 1.50 crore.
Another German luxury brand that had a first half to remember is BMW. The Group reported sales of 5,867 units in the first six months of 2023, of which 5,476 units were BMW cars and SUVs, while the remaining 391 units were from the Mini brand. This is the highest half-yearly sales figure BMW has registered in India till date, and the company also had its best quarterly and single-month (June) sales in H1 2023. BMW’s SUVs made up more than half of the brand’s entire volume, with the new X1 alone accounting for 20 per cent of sales. Yet another star seller was the BMW 3 Series Gran Limousine, which turned out to be the best-selling sedan in the lineup, contributing 20 per cent to the total sales.
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BMW's top-of-the-line ‘Luxury Class’ vehicles now make up almost a quarter of the brand's total India sales.
Just like Mercedes’ TEVs, BMW’s ‘Luxury Class’ lineup – comprising the 7 Series, X7, i7 and XM – made up almost a quarter of the company’s total sales. The iX became the highest-selling EV from BMW, while the all-electric Mini Cooper SE made a vital contribution to Mini’s total sales, with over 50 units sold. A total of 527 BMW Group EVs have been registered in 2023, as per VAHAN registration data.
Also Read: Volvo Cars India Records 33% Growth In First Half Of 2023
Audi registered a near-100 per cent increase in sales over 2022, reporting sales of 3,474 vehicles in the first half of 2023. Volvo Cars revealed it, too, witnessed a year-on-year increase in H1 sales to 1,089 vehicles. While the XC60 SUV remained its chief volume driver (376 units sold), the battery-powered XC40 Recharge accounted for more than a fourth of Volvo’s total sales, with 289 units sold.
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The XC40 Recharge EV accounted for 27 per cent of Volvo India's total first half sales.
The only prominent luxury car brand to not disclose half-yearly sales is JLR India (formerly Jaguar Land Rover India). In the midst of a complete organisational transformation, JLR has had to scale back its Jaguar portfolio (which currently comprises just one volume model, the F-Pace SUV) and rely heavily on the Land Rover family of SUVs to keep the wheels of the business turning.
Also Read: BMW 7 Series, X7, i7, XM Make Up Nearly A Quarter Of The Brand's India Sales
carandbike has learned from industry sources that JLR India sold approximately 1,500 vehicles in the first six months, and when clubbed with the cumulative sales of all the other brands operating in the luxury segment, the total figure is close to 2,100 units.
JLR, which is in the midst of an organisational transformation, has not revealed India sales figures for H1 2023.
The signs are encouraging for 2023 to be a record year for luxury car sales in India, with the current rate of sales suggesting most, if not all, players may have their best year yet in the Indian market. Mercedes-Benz had over 3,500 orders yet to be fulfilled at the end of June, and it may well end up exceeding the 16,000-units mark for the very first time by the end of 2023. Set to bolster Mercedes’ market prospects are the new-gen GLC, new EVs, such as the EQE sedan and SUV, as well as the EQS SUV, all of which are expected to arrive in India in the time to come.
BMW is also on track to cross the 12,000-units mark at its current rate of sales, and has yet to deliver over 2,500 vehicles. Just like Mercedes, BMW, too, has promising new models such as the all-electric BMW iX1 SUV, new 5 Series and the i5 electric sedan in the pipeline, and has a few more launches lined up for the second half of 2023. Audi, too, will soon upgrade the ageing e-tron, giving it the ‘Q8’ prefix, a larger battery and enhanced range. Volvo, meanwhile, is readying the C40 Recharge coupe-SUV for launch in August, to build on the momentum generated by the XC40 Recharge.
