Luxury car market back on track, Mercedes-Benz, BMW sales grow up to 11%

After a flat performance in calendar year 2016, the domestic luxury car market is back on the growth track. India’s largest luxury car maker Mercedes-Benz saw its volume surge close to nine per cent during the January-June period, when it sold a record 7,171 vehicles. BMW clocked a growth of 11.5 per cent in the same period to sell 4,589 vehicles.

Luxury car makers such as Mercedes, BMW and Audi had passed on the benefits of GST within days of the announcement of the rates in May even though they came into effect from July. This was done to ensure customers do not postpone purchases in anticipation of price cuts. That strategy seems to have worked and prices of luxury cars are down five to ten per cent. Companies are anticipating a push in demand going forward. 

Mercedes said it saw 40 per cent jump in June sales. During the quarter ended June 30, it sold 3,521 units, its best quarterly performance in India. It clocked a year-on-year growth of 18 per cent in the quarter. “Having set the sales momentum in Q1 of 2017, we are glad to better ourselves with an impressive Q2 sales performance,” said Roland Folger, MD and CEO, Mercedes-Benz India.