Carmakers such as Mercedes, BMW, Audi and Toyota rolled out eight new models with eight-figure price tags in 2023, taking the number of such models in the country to 31, according to data collated by Jato Dynamics.
The data does not include models from super-luxury carmakers such as Rolls-Royce, Bentley, Lamborghini, and Aston Martin.
Carmakers said increased wealth creation, particularly among younger people, is driving the increasing demand for top-end vehicles, or TEVs.
It is a global trend that is becoming more visible in India currently, they said.
“Our customers are increasingly preferring higher spec and topend vehicles which are priced Rs 1.5 crore and above,” said Santosh Iyer, managing director and chief executive of Mercedes Benz India, which has 10 models priced above Rs 1 crore, up by two models over 2022.According to Jato Dynamics, sales of cars priced Rs 1 crore or more grew 21% on year to 186 last calendar, primarily driven by sales of Jaguar Land Rover.
Amongst the highest selling super-premium cars in 2023 were the Land Rover Range Rover priced at Rs 4.17 crore, with a sale of 43 units, and the Land Rover Defender priced at Rs 2.34 crore with a sale of 40 units, data collated by the automotive market research firm showed.
Superior Tech, Personalisation Options
Carmakers said such highly desirable models with timeless design and superior technology come with attention to details and numerous personalisation options. It is one of the most profitable segments for luxury automakers and they are strengthening the segment amid an overwhelming response from customers.
“Our performance and lifestyle cars, along with the entire e-tron range fall into this segment, which has collectively experienced growth of 40% last year,” said Balbir Singh Dhillon, head of Audi India, which currently has eight models priced above Rs 1 crore, two more than in 2022.
Audi’s top-of-the-line cars such as the Q8, A8 L, RS5 sportback, RS Q8, e-tron GT, and the RS e-tron GT are witnessing strong demand, Dhillon said.
Compared to earlier times when the traditionally rich or older customers went for flagship models, young leaders are increasingly defining success and rewarding themselves with such absolute luxury cars, carmakers said. “If we look at the age, today 66% luxury class customers are less than 45 years old,” said Vikram Pawah, president at BMW Group India, which doubled the number of Rs 1 crore-plus cars to six in 2023.
Within the luxury circle, there are those who want to be further differentiated and “we see an unprecedented desire leading to a trailblazing growth of 88% y-o-y in 2023”, Pawah said.
BMW’s super-luxury models include the XM, i7, the new 7 Series, X7, M2 and X5.