COVID-19 pandemic has pushed back luxury car segment in India by 5-7 yrs: Audi
Team Udayavani, Oct 25, 2020, 11:00 AM IST
New Delhi: The coronavirus pandemic has hit hard the luxury car segment in India, taking it back by five to seven years, and it will take two to three years to reach the levels witnessed around 2014-2015, according to a top official of German auto major Audi.
With gradual recovery taking place post COVID-19 induced disruptions, sales will witness growth next year, albeit on a lower base.
“While we all are saying that sales are growing and there are positive sentiments and we will also grow next year…the base has become lower,” Audi India Head Balbir Singh Dhillon told PTI.
“The number of cars that were sold in 2014-2015, we are not going to reach those levels immediately next year. So pandemic has actually taken us back by five-seven years,” Dhillon added.
In 2014, luxury car sales in India stood at around 30,000 units, while it was at around 31,000 units in 2015.
When asked how soon the luxury car industry can turn around and recover the lost ground, he said, “For sure not next year, for the luxury segment (it will take) two to three years to reach those levels again.”
Indian luxury car market, comprising top five players — Mercedes, BMW, Audi, JLR and Volvo, is estimated to have sold nearly 35,500 units in 2019, down from 40,340 units in 2018.
Dhillon said the entire automotive sector has taken a big hit this year and “even last year for the luxury segment was also a degrowth year”.
So in terms of volume growth, it is going to start from next year, he said.
“We are not coming back to the best of our years, but we are happy that we are moving in a positive direction,” Dhillon said, while exuding confidence about the long-term potential of Indian automobile market.
Stating that motorisation level in India is very low, he said, “We have less than 30 cars for every 1,000 people as compared to other developing or developed countries where it is somewhere as high as 800 in China…We still have a lot of motorisation to happen.”
“What India offers at this point of time is a lot of potential for the long term. Economy for sure is going down, but every estimate shows that there will be a V-shaped recovery in 2021 on the base of a lower economic activity this year, which will definitely improve the market,” Dhillon said.
The other thing, he said, is the demographics of India with 65 per cent of population under the age of 35 years.
“These are those individuals who are ready to experiment, these are those individuals who do not believe in only saving but also in spending, these are those individuals who want to experience things other than put the money in their bank accounts.
“So for them, experience matters more than ownership of goods. These are all positive things, which we think will continue to give positive energy to the automotive energy,” Dhillon added.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Speculation rife in Karnataka as CM convenes meeting of cabinet, MPs
Farmers’ protest: Vigil stepped up in Delhi’s bordering areas, vehicles being checked
Khattar hits out at Amarinder, tells him to stop ‘inciting’ innocent farmers
Related Articles More
BMW X5 M Competition SUV launched in India
India’s two-wheeler exports to see sustained growth in H2 FY22: Ind-Ra
Toyota drives in updated Innova Crysta with price starting at Rs 16.26 lakh
Govt plans to set up charging infrastructure across 69K petrol pumps
Suzuki India expands BSVI product portfolio with V-Strom 650XT ABS launch
Madhavashankara name for Mangalore airport: Shri Sugunendra Tirtha Swamiji
Centuries-old Tuluva ritual of ‘Bhoomipuje Gaddekori’ still performed at Palthadi Village in Puttur
A bike rider dies in a lorry crash : The scene of the accident was captured on CCTV
Moodbidri: Four people drowned in Shambhavi river
1348 new vented dams in K’taka’s coastal districts: J.C. Madhu Swamy
Chinese Premier Li to Attend SCO Heads of Govt Meeting Hosted by India on November 30
Phone Call Row: RJD Chief Lalu Prasad Shifted from Hospital Director’s Bungalow to Paying Ward
India, Nepal Agree to Advance Ties as Foreign Secretary Meets Nepalese Top Leadership
Former Assam CM Tarun Gogoi Cremated With Full State Honours in Guwahati
UP govt extends ban on strikes in state departments for 6 months