The luxury car market is witnessing a remarkable demographic shift, with the average age of Mercedes S Class buyers plummeting from the mid-40s to the mid-30s, as reported by Aryaman Thakker, Executive Director of Landmark Cars. This trend reflects a broader movement among younger, affluent consumers, often dubbed the ‘YOLO’ generation, towards luxury vehicle ownership, fueled by increased incomes, positive economic outlooks, and shifting mindsets post-Covid-19.
Booming Luxury Car Sales and Market Expansion
In 2023, luxury car brands such as Volvo, Lexus, and Porsche experienced a 20% year-on-year sales increase, significantly outpacing the growth of the overall passenger vehicle segment. Thakker attributes this surge to the burgeoning interest of younger consumers in luxury cars, a phenomenon further bolstered by a robust economic recovery post-pandemic. Amidst this growth, Landmark is strategically expanding into South India, a region Thakker considers crucial for capturing the burgeoning luxury car market.
Electrifying the Luxury Segment
The conversation around luxury cars is incomplete without discussing the electric vehicle (EV) revolution. Landmark Cars, in partnership with industry giants like BYD and Mercedes, is poised to play a pivotal role in India’s EV adoption. With Volvo’s announcement of launching the EX90 and EX30 EV SUVs by 2025 and the Economic Times reporting on Tata Group’s plans for an EV business IPO, the luxury car segment is set for an electrifying transformation. Thakker envisions a significant uptick in EV adoption, aligning with global sustainability trends and India’s ambitious EV targets.
Challenges and Opportunities Ahead
Despite the 37% growth in India’s luxury car segment amidst inflation and interest rate hikes, Thakker notes the comparatively low luxury car ownership among Indian millionaires versus global figures, suggesting a vast growth potential. Furthermore, the rise of the pre-owned luxury car segment in Tier 2-3 cities presents both challenges and opportunities. Landmark aims to leverage its brand expertise and focus on profitability to capitalize on this trend, positioning itself at the forefront of India’s luxury car market evolution.
As the luxury car market continues to evolve, with younger consumers driving sales and the electric vehicle revolution gaining momentum, companies like Landmark Cars are at the cusp of significant transformation. The shift towards luxury and sustainability reflects changing consumer preferences and the potential for substantial growth in the Indian market, signaling an exciting era for luxury car enthusiasts and environmental advocates alike.
