Britain’s historical decision to exit the EU resulted in the pound sterling taking a massive plunge (pound dropped about 20% against Indian rupee in less than a year). While the debate around the ups and downs of Brexit and its impact on the world is still on, it seems India’s elite petrolheads have something to be happy about.
According to an ET report, high-end auto marques that bill their global sales in British currency including Ferrari, Aston Martin, Rolls Royce, Bentley, Range Rover, etc., have passed on the economic benefits due to change in the currency dynamics to their Indian customers with the hope of making the lifestyle products more attractive. After all, India ranks third when it comes to population of billionaires.
In 2016, over 200 units of automobiles that cost upwards of INR 2 crores found their homes in India (best ever performance by this segment). Roughly half of them are of British make, thereby clearly signalling that the post-Brexit price cut is a hit among Indian luxury car buyers. This has put some pressure on brands which bill their Indian imports in dollars or euros (INR gained against these currencies too but not in the same magnitude as it did with the pound sterling).
While Aston Martin has been cutting prices at regular intervals, rest of the brands passed on the benefit only recently. The overall price cuts range from 5-15% which in terms of INR ranges from about 20 lakhs to over a crore. Though Ferrari is an Italian brand, the company bills India in the UK currency, and not in Euro. This is why Ferrari prices too have declined.
According to the supercar dealers in India, the trend has increased the number of inquiries which would eventually lead to increase in demand. The outlook for the Indian supermarket in 2017 is even brighter than previous year as introduction of GST could make the scenario even more conducive.