Going for higher-end models has been a trend for some time in India. The increasing affluence in society has seen small car users upgrading for higher-end models. At present around 5000 luxury cars sell per annum in the Indian market.
The much awaited cheap cars have led to a lot of speculation about an impressive growth in the small car market, but with soaring sales registered in the luxury car market industry, experts now predict the growth in the luxury segment to double the current figures in the next three years. Financial institutions involved in automobiles and companies have reason to believe that the there will be about 10,000 units being sold annually by 2010.
The cars with a price tag of over Rs 20 Lakh have been producing the best sales record in recent years. This is one reason why a company like Tata is battling to grab the Jaguar-Land Rover deal. International auto giants like Mercedes-Benz and BMW have also registered an impressive growth. BMW saw an increase of close to 18 percent in 2007 compared to 2006 and Mercedes was close behind.