Luxury market in India is gradually gaining attention. Though the 'buzz', this sector is generating is disproportionately high in comparison to the size of the market, but it shows that the global luxury brands do recognize the high potential of the Indian luxury markets.
Till a decade back, luxury retail was only meant for the with just a few luxury brands available and that too in five star consumption of elites hotels. Over the years, India’s increasing urbanization rate has monetarily empowered the consumer which has further helped luxury market to set a firm foot for itself.
The luxury market is growing at a rapid pace in India with a compounded annual growth of 25%. At US$4.76 billion, the luxury market in India is set to touch three times its current size at US$14.72 billion by 2015. The country has become the prime destination for top-notch global brands, while many high-end luxury brands have quickly set up their shops here.
Out of the all luxury segments in India, the Luxury Car segment acquires the major share.
Trends in the Industry
• Global companies are eyeing India as a manufacturing base
• Players diversifying offerings
• Increase in number of dealerships across India
India has proven to be a frugal hub for Automobile OEMs due to its location and skill advantage. India is a now a part of the global strategy for all major automobile companies; every company is planning to set up their manufacturing base in the country and are also exploiting its option as an export hub.
The luxury car market in India has registered a fair amount of growth in the last few years and is growing at the rate of 27% per year, and a CAGR of 7% annually.
Find More: Luxury Car Market In India (2011-15)