The new edition examines India's luxury car paradox, exploring why affluent buyers remain hesitant despite growing wealth.
03 Oct 2025 | 2106 Views | By Autocar Professional Bureau
Autocar Professional examines India's luxury car paradox in its latest edition. Despite high-net-worth households nearly doubling in recent years, luxury vehicles comprise merely 1.2% of the passenger vehicle market. While the recent GST cut has reduced prices by lakhs and is expected to boost festive-season sales, the publication argues that ...
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Autocar Professional examines India's luxury car paradox in its latest edition. Despite high-net-worth households nearly doubling in recent years, luxury vehicles comprise merely 1.2% of the passenger vehicle market. While the recent GST cut has reduced prices by lakhs and is expected to boost festive-season sales, the publication argues that tax adjustments alone cannot resolve deeper structural challenges.
High import duties, steep ownership costs, cultural caution, weak infrastructure, and a value-conscious mindset continue to limit adoption—even among buyers willing to spend on big-ticket lifestyle purchases.
Industry leaders such as Mercedes-Benz India’s Santosh Iyer and BMW Group India’s Vikram Pawah acknowledge taxation as a barrier, but they also point to deeper behavioural and ecosystem challenges. Growth is emerging through entry-level luxury, pre-owned markets, and faster EV uptake, especially among younger buyers. Still, meaningful expansion will need consistent policy, mindset shifts, and a broader definition of value.
Beyond luxury, the edition reflects the diversity of the auto sector—from the continued importance of two-wheelers in mass mobility to the transformation of the construction equipment industry. A special roundtable on CE spotlights how technology, financing, and sustainability are redrawing the roadmap for the sector.
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