The demand for expensive models of luxury car companies like Mercedes Benz, Audi and BMW is increasing in India. Due to this, the ‘waiting period’ for such models has increased due to supply constraints. Top officials of these companies gave this information. Balbir Singh Dhillon, Head, Audi India, said, “In the last few months or so I would say from last year the demand for C and D segment vehicles i.e. 70 to 75 lakh rupees has increased. The growth in this has been more than the volume segment.
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He said that those who are able to buy such cars like industrialists, sportspersons and Bollywood celebrities, they are coming forward and buying luxury products. Giving the example of Audi electric e-tron, Dhillon said that we are selling this car for more than Rs 1 crore. “These cars are completely sold out even before they come to India.” He added that the waiting period for these cars has increased due to supply constraints. Earlier the waiting period for them used to be one to two months, which has now increased to four to six months.
Echoing similar views, Martin Schwenk, Managing Director and Chief Executive Officer (CEO), Mercedes-Benz India, said, “Unfortunately, we are able to supply some of the cars to our customers after months. Especially the GLS and GLE (SUVs) come into this. Not only is there a supply-side issue with these cars, but the demand for them is also very high globally. So we have to prioritize.” In the first quarter of 2022, the company had orders for over 4,000 units. Mercedes Benz India sold over 2,000 units worth over Rs 1 crore in India in 2021. These include the S-Class Maybach, GLS Maybach and the top-end AMG. The S-Class and GLS SUVs account for 30 percent of the company’s total annual sales.
Another luxury vehicle company BMW is also seeing a similar trend. The demand for its expensive models has increased. Vikram Pawah, President, BMW Group India said, “We have a very strong position in the SAV (Sports Activity Vehicle) segment. Its X3, X4 and X7 models are in high demand. Our growth in this segment is 40 per cent. They account for more than 50 per cent of our overall portfolio.” BMW India’s SAV segment of vehicles costs more than Rs 61 lakh. The segment’s sales in Q1 stood at 1,345 units, a growth of nearly 40 per cent.