Luxury Car Sales in India Surge to Record High

Sales of luxury cars in India zoomed 19% to a record 39,400 units in 2017, according to company data.

The sector represents less than 1% of India’s automotive market. But demand has continued to grow in recent years in spite of market disruptions, demonetization and new taxes.

More than 80% of the segment’s volume last year was generated by German brands: Mercedes-Benz (+16% to 15,300 units), BMW (+25% to 9,800 vehicles) and Audi (+2% to 7,900). Mercedes, which launched 12 models in India last year, has led the country’s luxury car market for the past three years.

All three brands locally assemble at least some of the models they sell in India. Last October Volvo also began building XC90 crossover vehicles in the country. Volvo’s car sales in India climbed 28% to 2,000 units in 2017.

India’s most expensive luxury car is the Mercedes Maybach at 55 million rupees ($862,300). That model is followed by the Bentley Azure and Rolls-Royce Phantom, each of which retails in the country for about 35 million rupees ($548,700).