The automaker is optimistic of growth prospects given the demand momentum it has witnessed in the Indian market in the first half of the year.
Industry estimates that around 17,000 luxury vehicles were sold in the country during January-June this year, which is an increase of 55% over the 11,000 units sold in the year-earlier period. Upwardly mobile consumers continue to purchase top-end vehicles, despite inflationary pressures and long waiting periods.
The luxury vehicle industry is poised to make the leap into the next stage of expansion over the next few years, Audi India head Balbir Singh Dhillon told ET. “In the luxury vehicle segment, we expect the momentum to continue in the second half of the year. Sales have not only been good, (but) there are also decent customer orders. Pent-up demand, as well as new product launches have helped shore up volumes. There is a lot of positivity in the market.”
While globally there are several major challenges, the Indian economy seems resilient, Dhillon said. “Even as FPIs (foreign portfolio investors) are moving out, Indian investors are investing in the market. We feel India will grow and grow strongly. This year, we (luxury vehicle makers) should be coming very close to the previous peak and thereafter take a leap and get a little larger share of the overall passenger vehicle market,” he said.
Luxury vehicles now account for just a 1.0-1.5% share in India’s total car sales, which is among the lowest in the world.
Dhillon was speaking on the sidelines of the launch of the new A8 L on Tuesday. The car is priced at Rs 1.29 crore for the celebration edition and Rs 1.57 crore for the technology edition. This is the second launch for the company this year, after the Q7 SUV.
Dhillon said supply challenges were expected to continue for some more time. “While we definitely expect to grow in strong double-digits in the second half, it is difficult to predict numbers in the current environment given supply constraints,” he said.
Audi’s India sales grew 49% to 1,765 units in the first six months of 2022.
The company has plans to launch a few more models this year to maintain the growth momentum. Dhillon declined to share the number or the specifics of the remaining products scheduled for launch.
