India has great potential to significantly expand its luxury car market with the help of a stable tax policy regime, said Balbir Singh Dhillon, Head of Audi India.

“There is great potential for India to significantly expand its luxury car market. A stable tax policy regime is required to let the luxury segment generate greater volumes,’‘ Mr. Dhillon told The Hindu on the sidelines of the opening of the German car manufacturer’s pre-owned luxury car outlet, Audi Approved: Plus in Bengaluru.

On sales outlook for luxury cars during the upcoming festive season, he said, the second half of the calendar traditionally outperformed the first half and the forthcoming festive season was set to mark the best-ever sales season for India’s luxury car market.

“Robust sales performance on the back of strong demand, growth in the luxury car segment, evolving demographics and favourable economic conditions are leading to growth in the industry. For the upcoming festive season, we are confident that this growth will continue, leading Audi to end the year with high double-digit growth,’‘ he stated.

Narrating emerging customer trends in the segment, Mr. Dhillon said the luxury car segment has witnessed a structural shift, with a younger demographic entering the segment. Factors such as favourable economic conditions and rising income levels have led to the growth of the luxury segment.
 

“First-generation entrepreneurs, young professionals and entertainment and sports celebrities and an increasing number of high and ultra-high-net-worth individuals have emerged as new-age customers are the new segment, and we see growth in the market through them,’‘ he added.

Responding to a query on whether the line between luxury and utility was blurring especially among certain customer segments, he elaborated, although luxury would always continue to differentiate itself from utility, it was a fact that access to luxury has expanded from being limited to old money, and young and dynamic achievers have emerged, creating a new demographic that is significantly younger, falling between the ages of 30-45.

“First-time luxury car buyers have also penetrated the pre-owned luxury car segment, leading to rising demand across the country, including Tier-2 and Tier-3 cities,’‘ Mr. Dhillon observed.

According to him, Audi India’s varied product portfolio, human-centric approach, focus on the EV ecosystem, its pre-owned car business and retail expansion and network reach are factors contributing to its consistent growth.

“This year, we have diversified our portfolio with new launches – the Audi Q3 Sportback, Audi  Q8 e-tron SUV and Audi Q8 Sportback e-tron. In addition, we have introduced the Audi Q8 Limited Edition for the festive season,’‘ he said.

In the first half of 2023, Audi India retailed 3,474 units of cars witnessing a 97% growth compared with the year-earlier period.