FADA retail sales for luxury car market sees volume double in June 2021 – MoM growth is 120% while YoY growth is 167%
Since the initial lockdown that was announced in late March 2020, things have been uncertain at the business front for Indian auto manufacturers. Despite difficulties, as lockdown was lifted in a phased manner since May 2020, the move forward has been hindered by multiple factors.
The current perception of luxury car buyers seems to be tentative but manufacturers have said that growth is expected as things move to normalcy. Sales of all luxury cars have contracted in recent months.
This is despite the fact that production output did improved to a great degree at the start of 2021. Note – FADA numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4. Vehicle Retail Data has been collated as on 06.07.21 in collab with MoRTH, GoI, and is gathered from 1,295 out of 1,498 RTOs.
MoM volume growth
Mercedes Benz reports 546 units in June 2021, up from 305 units in June 2020. Volume gain stood at 241 units at 79 percent growth.
Through overall market contraction, Mercedes Benz continues to lead on the retail chart. MoM volume growth is reported at 348 units, up from 198 units in May 2021. Mercedes Benz is selling at a viable price point since the beginning but recent years have seen multiple external situations impact the market.
Prior to Covid-19 pandemic related lockdown, the luxury car market had already reported decline at the end of 2019. The top end of the segment may even have started to be impacted by countrywide demonetization announced in 2016.
Market expected to grow
BMW YoY sales grew to 390, up from 155 units at volume growth of 235 units. MoM volume gain stood at 238 units, up from 152 units. VW Audi YoY sales was up at 152 units from 3 units. MoM volume growth is at 105 units, up from 47 units.
JLR volume doubled to 123 units, up from 62 units. MoM volume gain stood at 84 units, up from 39 units. Volvo reports June 2021 sales at 63 units, up from 52 in June 2020. MoM volume gain stood at 27 units, up from 36 units.
9 units of Porsche, 4 of Lamborghini, and 2 Rolls Royce units were sold last month. Bentley sales stood at a single unit compared to May 2021. Future outlook for these markets is considered challenging but sales may be impacted positively by increasing interest from Tesla. Despite limitations, luxury car sales in June 2021 have been better than in May 2021. As markets begin to open up and production increases, sales is expected to improve.