While overall sales of automobiles sales are down in India, the luxury car market is growing annually in double-digits, Automotive World reports.
Sales of luxury cars, which are classified as automobiles priced at more than $32,000, are expected to reach 325,000 cars sold by 2020, according to industry insiders. By 2020, the number of high-net-worth individuals is expected to increase to 1.5 million from 205,000 in 2012. That is an increase of more than 700 percent. China and the U.S. will be the top markets for premium automobiles.
The makers of luxury vehicles increasingly keep an eye on another characteristic of this market: the growing demand from Tier Two and Tier Three cities, which house 33% of the country’s HNI population. OEMs have started holding road shows in these cities, in an attempt to reach the target consumers here, typically wealthy landowners.