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Market down for super luxury cars

Market down for super luxury cars
Parichay Malvankar
Written by Parichay Malvankar

While the passenger car segment is showing some signs of growth after a slowdown, the super luxury car segment still seems to be shrinking in 2014-15.

Car priced between Rs. 2 crore to Rs. 6 crore are expected to decline by 10-15% this year and may be even halve the industry size to almost 110-115 units in 2014. The primary reason for this downfall in sales is because of the increase in custom duties. It increase from 60% in FY12 to 75% in FY13 and shot up to 100% in FY14. Due to this, a Rolls Royce car which could be had for Rs. 2.7 crore two years back now costs over Rs. 5 crore.

Rolls Royce is expected to sell only ~40 units this year as opposed to 90 cars in 2011. Even Bentley expects a drop to only 35 units this year. Lamborghini however with the launch of new models is looking at maintaining last years numbers.

Dealers of such high end luxury cars are openly expecting that they are not making any money and expenses are on a constant incline. However, next year is expected to drive in some relief with increase in sales, hopefully.

Source – ET Auto