Luxury cars might be 1.1% of passenger car units sold, but these contribute 10% to the market's value
On the sidelines of launching the Audi RS 5 Coupe, a sports car priced at Rs 95.28 lakh (ex-showroom Maharashtra), Michael Perschke, the India head, has made it clear that the German car manufacturer is in no way ceding ground to its two competitors.
Having pipped BMW at the start of the year to become India's largest luxury car manufacturer, Audi, which has already launched six models this year, has at least six more on its mind for the second half of the year.
At least one model will be launched by Audi priced around Rs 25 lakh this year, according to Perschke. Entry-level luxury sedans, ranging between Rs 20 lakh and 30 lakh are on its cross-hairs. Perschke explains the interest with the example of the A3 sedan, scheduled for next year. "We have the A3 sedan and we believe it has a stronger value proposition than a hatchback because on a broader scale, Indian buyers are conservative when it comes to body types and we feel the A3 sedan is a very strong answer to the Mercedes A class or the BMW 1 Series", adds Perschke.
Mercedes-Benz India launched a luxury hatchback, A Class, in early-June for Rs 21.93 lakh and within 10 days, received confirmed bookings of 400 units, making it one of the most successful models from the oldest luxury player operating in India. Former champion BMW, which has been struggling of late, will also launch its smallest and cheapest range, the 1 Series, later this year.
To aid the new launches, Audi will increase its retail locations from 23 to 32-34 by the end of the year. With 90 per cent of Audi's volumes coming from locally-made models, it plans to add more models for production in its India plants. "We are evaluating the investment we need to make in India. We are running in one-shift mode, producing between 10,000-11,500 cars per annum basis. We can double the shift so we have easy-capacity of up to 20,000 cars. Till 2015, we are safe from the investment point of view" adds Perschke.
Though sales slipped by 9 per cent in the Indian passenger car market in April-June, 2013, the volume growth for Audi and Mercedes has been significant. Audi maintained its lead with sales of 2,230 units, a growth of 29 per cent compared to last year's first quarter. Riding high on its small cars, Mercedes-Benz saw sales of 1,756 units in the same period, a growth of 32 per cent. While BMW has not issued any sales numbers for the given period, industry reports indicate that Mercedes-Benz has overtaken BMW to claim the second spot.
Eberhard Kern, managing director and CEO, Mercedes-Benz India says, "The year 2013 is the Year of Offensive for MB in India. Our fully-refreshed product line-up, with new segment introductions, has received an overwhelming response from the customers. The B-Class CDI is set for launch and we have other fascinating products to follow through the year."
With numerous launches planned by Mercedes-Benz and BMW, the entry-level luxury segment is expected to have 25 per cent of the luxury car market by early next year, up from the present 14-17 per cent. According to industry spokespersons, the luxury car market in India is around 33,000-34,000 units. That is 1.1 per cent of passenger car volumes, but contributes 10 per cent to the market's value.
Having pipped BMW at the start of the year to become India's largest luxury car manufacturer, Audi, which has already launched six models this year, has at least six more on its mind for the second half of the year.
At least one model will be launched by Audi priced around Rs 25 lakh this year, according to Perschke. Entry-level luxury sedans, ranging between Rs 20 lakh and 30 lakh are on its cross-hairs. Perschke explains the interest with the example of the A3 sedan, scheduled for next year. "We have the A3 sedan and we believe it has a stronger value proposition than a hatchback because on a broader scale, Indian buyers are conservative when it comes to body types and we feel the A3 sedan is a very strong answer to the Mercedes A class or the BMW 1 Series", adds Perschke.
Mercedes-Benz India launched a luxury hatchback, A Class, in early-June for Rs 21.93 lakh and within 10 days, received confirmed bookings of 400 units, making it one of the most successful models from the oldest luxury player operating in India. Former champion BMW, which has been struggling of late, will also launch its smallest and cheapest range, the 1 Series, later this year.
To aid the new launches, Audi will increase its retail locations from 23 to 32-34 by the end of the year. With 90 per cent of Audi's volumes coming from locally-made models, it plans to add more models for production in its India plants. "We are evaluating the investment we need to make in India. We are running in one-shift mode, producing between 10,000-11,500 cars per annum basis. We can double the shift so we have easy-capacity of up to 20,000 cars. Till 2015, we are safe from the investment point of view" adds Perschke.
Though sales slipped by 9 per cent in the Indian passenger car market in April-June, 2013, the volume growth for Audi and Mercedes has been significant. Audi maintained its lead with sales of 2,230 units, a growth of 29 per cent compared to last year's first quarter. Riding high on its small cars, Mercedes-Benz saw sales of 1,756 units in the same period, a growth of 32 per cent. While BMW has not issued any sales numbers for the given period, industry reports indicate that Mercedes-Benz has overtaken BMW to claim the second spot.
Eberhard Kern, managing director and CEO, Mercedes-Benz India says, "The year 2013 is the Year of Offensive for MB in India. Our fully-refreshed product line-up, with new segment introductions, has received an overwhelming response from the customers. The B-Class CDI is set for launch and we have other fascinating products to follow through the year."
With numerous launches planned by Mercedes-Benz and BMW, the entry-level luxury segment is expected to have 25 per cent of the luxury car market by early next year, up from the present 14-17 per cent. According to industry spokespersons, the luxury car market in India is around 33,000-34,000 units. That is 1.1 per cent of passenger car volumes, but contributes 10 per cent to the market's value.
Source: http://to.ly/mdl2
