Volvo Estimates a Three Fold Growth for India’s Luxury Car Market by 2015
India has one of the fastest growing car industries in the world and everybody knows that India is a price-sensitive market where low-priced compact cars are very popular. However, according to Volvo Car Corp., India’s luxury-car market will be tripled by and would account for 1.5 percent of the whole car market by 2015.
This seems to be a surprising statement by Volvo India’s managing director Paul de Voijs, but he has his logic behind it. He thinks that there are lots of rooms for growth for the luxury cars in India. Moreover, Capgemini SA and Merrill Lynch Wealth Management, the number of millionaires in India could be tripled by 2018 thanks to India’s surging economy.
India has the second-fastest growing economy in the world after China and naturally the number of rich people in the country would continue to grow. This is where lies the possibility of growth for the luxury cars in India. Companies like Volvo, Bayerische Motoren Werke AG and Daimler AG are planning to launch luxury cars in the country very soon. In fact, Volvo has plans to introduce two luxury cars in India by 2011 and one of the models would be available in Indian market in the first half of the current year. So, it seems that the price-sensitive tag of India’s car market would not restrict the big companies to enter into the Indian market with luxury car models.