Mumbai: Discounts on luxury passenger vehicles (PVs) have begun to decline after scaling a peak in March, but pressure on sales persists, said industry executives.
While attractive offers continue in select and slow-moving segments, the overall intensity of price cuts is easing, reflecting cautious optimism among dealers. Sales continue to face headwinds, though, with larger macroeconomic uncertainty dampening conversions despite what dealers describe as "healthy levels of enquiry".
"High levels of discounts are unsustainable. What continues is standardised discounts for pre-approved groups like doctors, lawyers and corporates, as they work as good influencers for the brands," said a Mumbai-based luxury PV dealer, who did not wish to be identified.
Purchases in the luxury segment are sentiment-driven, so any impact on the capital markets impacts buying and may lead to postponement or deferment of purchases, said several luxury PV dealers.
"Conversions are taking time. If the lead time was 10-15 days, now it's stretching to a month or two," a Jaipur-based luxury PV dealer said on condition of anonymity.
Most dealers are holding onto stocks and the industry is hoping for an uptick by June, driven by stronger consumer confidence and improved sentiment, as most manufacturers have lined up new launches with enhanced features.
Jaguar Land Rover has gained ground with its sport utility vehicle line-up, led by the rugged Defender and followed closely by the locally manufactured Range Rover and Range Rover Sport, surging ahead of Audi to claim the number three spot in luxury car sales. Mercedes-Benz and BMW remain ahead.
Northern India has seen a surge in sales of luxury PVs, with buyers in Chandigarh, Gurgaon and Delhi reordering the charts. Traditional hubs Bengaluru and Chennai have seen a dip in sales, according to data by Jato Dynamics.
At the same time, electric vehicles have seen a dramatic rise in popularity, adding another layer of change to the industry's dynamics. Petrol and electric vehicles now dominate the luxury passenger vehicle segment, while diesel continues its sharp decline. "This points to a market pivoting toward efficiency and innovation, hinting at a sustainable future," said Ravi G Bhatia, president and director, Jato Dynamics.
While attractive offers continue in select and slow-moving segments, the overall intensity of price cuts is easing, reflecting cautious optimism among dealers. Sales continue to face headwinds, though, with larger macroeconomic uncertainty dampening conversions despite what dealers describe as "healthy levels of enquiry".
"High levels of discounts are unsustainable. What continues is standardised discounts for pre-approved groups like doctors, lawyers and corporates, as they work as good influencers for the brands," said a Mumbai-based luxury PV dealer, who did not wish to be identified.
Purchases in the luxury segment are sentiment-driven, so any impact on the capital markets impacts buying and may lead to postponement or deferment of purchases, said several luxury PV dealers.
"Conversions are taking time. If the lead time was 10-15 days, now it's stretching to a month or two," a Jaipur-based luxury PV dealer said on condition of anonymity.
Most dealers are holding onto stocks and the industry is hoping for an uptick by June, driven by stronger consumer confidence and improved sentiment, as most manufacturers have lined up new launches with enhanced features.
Jaguar Land Rover has gained ground with its sport utility vehicle line-up, led by the rugged Defender and followed closely by the locally manufactured Range Rover and Range Rover Sport, surging ahead of Audi to claim the number three spot in luxury car sales. Mercedes-Benz and BMW remain ahead.
Northern India has seen a surge in sales of luxury PVs, with buyers in Chandigarh, Gurgaon and Delhi reordering the charts. Traditional hubs Bengaluru and Chennai have seen a dip in sales, according to data by Jato Dynamics.
At the same time, electric vehicles have seen a dramatic rise in popularity, adding another layer of change to the industry's dynamics. Petrol and electric vehicles now dominate the luxury passenger vehicle segment, while diesel continues its sharp decline. "This points to a market pivoting toward efficiency and innovation, hinting at a sustainable future," said Ravi G Bhatia, president and director, Jato Dynamics.
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