The landscape of luxury auto marketing in India is experiencing a major shift. Major manufacturers like BMW, Mercedes-Benz, Audi, and Lexus are recognizing the potential of Tier II and Tier III cities, resulting in an unprecedented surge in luxury car dealership stores and pre-owned car markets. This change signifies a crucial growth phase as carmakers strive to capture the untapped markets and meet the escalating demand for luxury vehicles in these rapidly developing cities.
Audi India has been a noteworthy participant in this transition. In a startling revelation, it recently reported a massive quarterly growth of 50% in its pre-owned car business, suggesting the swelling demand in smaller cities. Balbir Singh Dhillon, head of Audi India, asserted that the number of cars available on their pre-owned car portal, Audi Approved: plus, has surged over the last few years, consequently pushing the company to enhance its facilities from 7 in 2021 to 23 in present times.
Another automaker, BMW, through its BMW Premium Selection, has established a foothold in the pre-owned car market in India. The company’s innovative approach to customer service, sales, and aftersales process has provided a potent stimulus to BMW operations in India, primarily in the non-metros. According to Vikram Pawah, president and CEO, BMW Group India, the BMW Premium Selection has served as a gateway into the luxury market for many customers, encouraging them to transition to luxury car ownership.
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Mercedes-Benz has a similar success story in India. Its pre-owned cars online store, Mercedes-Benz Certified, and Mercedes-Benz Marketplace have allowed customers to choose their preferred luxury vehicle from a range of pre-owned cars. The flexibility and trust instilled by these programs have spurred significant growth in sales in smaller cities.
Lexus India is another luxury carmaker contributing to this upward trend. Almost 40% of its sales in the pre-owned luxury car sector come from Tier II and Tier III cities, stated Naveen Soni, president, Lexus India.
Besides these strategies, luxury carmakers are adopting international standards in their dealership stores. With over 80 touchpoints across 35 cities, BMW Group India, along with Mercedes-Benz with over 123 touchpoints in 45-plus cities, are leading this change. Lexus India too has been expanding its presence with 23 touchpoints in 16 vibrant cities.
This strategic shift towards smaller cities underlines the confidence of luxury carmakers in the increasing purchasing power and the rising aspirations of customers in these regions. The growth of luxury car dealerships and the surging demand for pre-owned luxury cars are a testament to the immense potential of these emerging markets. These developments are truly paving the way for a new era in India’s luxury car market.
This news is based on information from the entrepreneur website.
