Luxury car sales enter the slow lane in H1
Remove Ads
Tired of too many ads?
Remove Ads
New Delhi: Luxury vehicle sales in India lost momentum in the first half of 2025, as stock market uncertainty and geopolitical tensions made buyers wary, industry executives said. Some 22,900 luxury cars were sold in the first six months of the year, according to industry estimates-an increase of 1.8% over the same period in 2024. In the mainstream passenger vehicle market, sales grew by about 2% till May and then declined in June.Industry body Society of Indian Automobile Manufacturers (SIAM) is yet to release data for car sales for the January to June period. Market leader Mercedes-Benz , which had posted 10% growth in sales in the last quarter to 4,238 units, recorded muted growth for the six-month period to 9,013 units."Our sales last quarter were driven by demand for top-end vehicles and electric cars, where volumes increased by 20% and 157%, respectively. We do not have many cars and are not participating in the entry luxury segment, where our sales are lower," said Mercedes-Benz India's managing director, Santosh Iyer."But that said, there is a lot of uncertainty in the broader market on account of the geopolitical situation, tariff decisions, price increases... For the (luxury vehicle) industry, for the entire year, we expect volumes to grow modestly in 2025."The German automaker's India unit has pending orders of about 1,500 cars, with a waiting period on some high-end models stretching to January 2026. But given the high base of more than 50,000 units in 2024, the company expects the industry to grow in single-digits in 2025.Audi India's head, Balbir Singh Dhillon, said, "As an industry, we are facing headwinds as slowing demand-driven by price increases from a weakening exchange rate and heightened market uncertainty amid evolving geopolitical tensions-continues to impact performance."The company's sales in the first six months of the year fell by 14% to 2,128 units. Singh, however, is confident of growth in the forthcoming months, which he said would be "driven by growing customer aspirations, exciting product launches and focus on delivering exceptional customer experiences".German rival BMW managed to buck the trend to report a 10% increase in sales at 7,774 units between January and June 2025.Vikram Pawah, president and CEO of BMW Group India, said, "Consumer sentiment was impacted to a certain extent in the second quarter due to the geo-political situation and increasing exchange rates. But with our strategic planning, fresh product portfolio and smart financial solutions, we carried forward the performance momentum."The company expects "to close 2025 on a high note with double-digit growth".In 2024, luxury car sales grew by about 8% to more than 50,000 units. This category has a little over 1% market share in India-the lowest among major economies. India, however, offers ample growth potential in the medium to long-term, given that it is home to one of the highest number of billionaires worldwide, industry experts said.Between 2023 and 2028, India will see the highest increase for any country in the number of ultra-high-net-worth individuals (UHNWIs), with a net worth of $30 million or more, as per Knight Frank's flagship study, 'The Wealth Report 2024'. The number of ultra-rich Indians is expected to surge by 50% to 19,908 in 2028 from 13,263 in 2023. India will be followed by China (47%), Turkiye (42.9%), and Malaysia (35%), according to the report.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
5 hours ago
- The Hindu
Senior German politician expects more talks in EU tariff dispute with Trump
A senior German politician said on Sunday (July 13, 2025) that the European Union and Washington could negotiate further and postpone higher import duties after U.S. President Donald Trump ramped up the trade war by threatening a hike in tariffs on the bloc. "The negotiating poker game between the EU and the U.S. is entering its decisive phase," Juergen Hardt, deputy leader of Chancellor Friedrich Merz's conservative CDU/CSU parliamentary group in the Bundestag, told Reuters. Also Read | India revises proposed retaliatory duties against U.S. over steel, aluminium tariffs: WTO "I'm betting that at least a partial agreement and a further postponement will be reached before August 1. After all, high tariffs have to be paid by American citizens and companies and lead to higher prices and inflation in the U.S.," he said. Mr. Trump on Saturday (July 12) threatened to impose a 30% tariff on imports from Mexico and the EU from August 1, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal. He originally imposed a duty of 20% on EU goods in April, but this later was suspended for 90 days and replaced with a baseline tariff of 10%. Last week he pushed back the deadline for negotiations to August 1. This was separate from sector tariffs covering steel, aluminium and car imports from the EU to the U.S. Europe has to dissuade Trump from his "mistaken belief" that the U.S. trade deficit is caused by protectionist measures by the EU, Hardt said. The U.S. has a surplus in services due to the dominance of its IT sector, he said, which helped offset the trade deficit to large extent. "Americans are so much wealthier than other nations that they can afford to make the rest of the world work for them in an economic sense," Hardt said. "Fewer imports mean that the USA would have to work more and harder to maintain its prosperity. Whether this is the fervent wish of the American people remains questionable."
Indian Express
5 hours ago
- Indian Express
Birkenstock lawsuit: craft and commerce of India's knockoff market
At Agra's bustling Sardar Bazaar or Delhi's Palika Bazaar, it's not unusual to find a pair of open-toe leather sandals selling for Rs 1,000. They look strikingly similar to the signature sandals made by Birkenstock, the German footwear brand, whose retail price in India is in the Rs 5,000-Rs20,000 range. This everyday sight recently became central to a high-profile intellectual property dispute when Birkenstock took legal action against some Indian manufacturers for allegedly producing and selling counterfeit versions of their signature sandals. What happened? In May, Birkenstock filed a civil lawsuit in Delhi High Court against four traders, four factories, and two individuals based in Agra and Delhi, accusing them of manufacturing and distributing footwear that closely resembled Birkenstock's registered designs. Following the complaint, the court appointed local commissioners to conduct raids at the identified premises, during which large consignments of counterfeit sandals were seized. The court also issued temporary injunctions restraining the accused parties from producing or selling footwear bearing Birkenstock's trademarks or design likeness. The case is scheduled for its next hearing on October 6. Birkenstock sandals are known for their cork footbeds and minimalist design, providing comfort and durability. They gained more pop culture currency after actor Margot Robbie wore a pair in the pupular 2023 movie Barbie. The 'first copy' business in India India's role as both a manufacturing hub and consumer market for counterfeit fashion goods has long posed challenges for global brands. From luxury handbags to sportswear and footwear, 'first copies' or 'dupes' are readily available across informal markets and increasingly on online platforms. A significant portion of India's population harbours a strong desire to emulate global fashion trends and own branded goods. However, India is also a highly price-sensitive market, and when a 'first copy' offers a nearly identical aesthetic of a luxury product for a fraction of the price, there is a ready demand for it. The Organisation for Economic Co-operation and Development (OECD), in a 2022 report prepared in collaboration with the EU Intellectual Property Office (EUIPO), identified India as a key origin country for counterfeit goods traded globally, alongside China, Turkey, and the UAE. According to a 2022 study by CRISIL and the Authentication Solution Providers' Association (ASPA), as many as 31% of Indian consumers admitted to knowingly purchasing counterfeit products, with apparel and footwear being the most common categories. The same report has also estimated that counterfeit goods make up about 25-30 per cent of India's retail market. The country's informal retail sector, characterised by busy street markets and small shops, provides a highly effective and widespread distribution network for these goods. The digital age has added a new dimension, with e-commerce platforms and social media (especially Instagram and Whatsapp) becoming major channels for selling counterfeits. Terms like 'AAA' quality or 'first copy' are used to market these items, leveraging influencers to promote them without explicitly using copyrighted terms. The artisan and the market Seen along with another footwear controversy in India recently — Prada using Kolhapuri sandals' design, initially without credit — the trend points to a unique problem facing India's artisans. India's traditional centers, like Agra for leather goods or various textile hubs, have a long history of craftsmanship. Their infrastructure and skilled labour are often leveraged by market forces to produce lookalike products, sometimes for local consumption and sometimes for export. Also, while big brands like Birkenstock have the resources to pursue legal remedies, small artisan communities like those involved in the Kolhapuri chappal trade have historically struggled to protect their work on international platforms. The law, and the limits of protection Under Indian law, brands can protect their products through the Trademarks Act, 1999, and the Designs Act, 2000. These allow the right for legal action, court injunctions, and the seizure of counterfeit stock.
India.com
6 hours ago
- India.com
iPhone, Smart TV, Microwave...: India beating China in every sector, it is happening because...
iPhone, Smart TV, Microwave...: India beating China in every sector, it is happening because… Mumbai: After dominating China in iPhone manufacturing, India is gearing up to dominate China in electronic household items, mainly in Smart TVs and microwave ovens. Along with this, some special electronic items are also being made in India. Earlier, electronic items such as robot vacuum cleaners, coffee makers, built-in refrigerators, and air fryers were completely imported from China. People familiar with the industry stated that it is happening because the government has increased the list of electronic items. As per the government's new guidelines, factories making these items will have to get a certificate from BIS. BIS's Quality Control Order (QCO) means that the goods coming from China and other places can be controlled and production in India can be promoted. In the past eight to nine months, the Quality Control Order (QCO) has overseen a significant increase in the regulation of specialized goods. Previously, many companies claimed the domestic market for these products was too limited to justify profitable Indian manufacturing. Previously, many companies claimed the domestic market for these products was too limited to justify profitable Indian manufacturing. What Are The Changes Made In The Rules? According to Atul Lala, who is the managing director of Dixon technologies, stated that the BIS regulations have brought a big change. Premium brands are now planning to manufacture small appliances in India, irrespective of small market. Dixon has recently joined hands with Eureka Forbes to make robot vacuum cleaners. German-Swiss multinational equipment manufacturer Liebherr has established a plant in Aurangabad to manufacture built-in refrigerators. The production started in April. BIS Certification Major contract manufacturer PG Electroplast initially stopped small appliance production due to limited market opportunities. But BIS QCO certification for various appliances, with increased inquiries from brands, has motivated the company to restart the production of small home appliances. The government's recent mandate that has impacted products like ACs, refrigerators, and electrical components has created a major barrier for foreign manufacturers who lacks BIS certification. This has boosted the domestic production.
