Luxury Car Market in India (2011-15)
Luxury market in India is gradually gaining attention. Though the 'buzz', this sector is generating is disproportionately high in comparison to the size of the market, but it shows that the global luxury brands do recognize the high potential of the Indian luxury markets.
Till a decade back, luxury retail was only meant for the with just a few luxury brands available and that too in five star consumption of elites hotels. Over the years, India’s increasing urbanization rate has monetarily empowered the consumer which has further helped luxury market to set a firm foot for itself.
The luxury market is growing at a rapid pace in India with a compounded annual growth of 25%. At US$4.76 billion, the luxury market in India is set to touch three times its current size at US$14.72 billion by 2015. The country has become the prime destination for top-notch global brands, while many high-end luxury brands have quickly set up their shops here.
Out of the all luxury segments in India, the Luxury Car segment acquires the major share.
Trends in the Industry
India has proven to be a frugal hub for Automobile OEMs due to its location and skill advantage. India is a now a part of the global strategy for all major automobile companies; every company is planning to set up their manufacturing base in the country and are also exploiting its option as an export hub.
The luxury car market in India has registered a fair amount of growth in the last few years and is growing at the rate of 27% per year, and a CAGR of 7% annually.
SCOPE OF THE REPORT
REASONS TO BUY
Till a decade back, luxury retail was only meant for the with just a few luxury brands available and that too in five star consumption of elites hotels. Over the years, India’s increasing urbanization rate has monetarily empowered the consumer which has further helped luxury market to set a firm foot for itself.
The luxury market is growing at a rapid pace in India with a compounded annual growth of 25%. At US$4.76 billion, the luxury market in India is set to touch three times its current size at US$14.72 billion by 2015. The country has become the prime destination for top-notch global brands, while many high-end luxury brands have quickly set up their shops here.
Out of the all luxury segments in India, the Luxury Car segment acquires the major share.
Trends in the Industry
- Global companies are eyeing India as a manufacturing base
- Players diversifying offerings
- Increase in number of dealerships across India
India has proven to be a frugal hub for Automobile OEMs due to its location and skill advantage. India is a now a part of the global strategy for all major automobile companies; every company is planning to set up their manufacturing base in the country and are also exploiting its option as an export hub.
The luxury car market in India has registered a fair amount of growth in the last few years and is growing at the rate of 27% per year, and a CAGR of 7% annually.
SCOPE OF THE REPORT
- Luxury Car Market in India at a glance
- Emerging trends in the industry like players diversifying their offering, companies eyeing India as a manufacturing base and Increasing number of dealerships
- Factors driving growth, Issues & Challenges
- Government Regulations & Initiatives in Indian market
- Major players
- Forecasts
REASONS TO BUY
- To understand the various factors which are fuelling the growth and those which are/will be critical for the industry performance in the near term
- Comprehensive report covering all the aspects required to understand the industry performance and future prospects.
- The report elucidates the current market scenario of the industry and forecasts key parameters which helps to anticipate the industry performance
1. OVERVIEW
1.1 Structure of the Industry
1.1.1 Premium compact segment
1.1.2 Entry-level luxury/compact executive cars
1.1.3 Mid-luxury/executive cars
1.1.4 High-end luxury/full-size luxury cars
1.1.5 Ultra-luxury cars
1.1.6. Luxury SUV/Crossover
1.2 Consumers
1.2.1 Consumer Classification
1.2.2 Spending Pattern
2. DEMAND SUPPLY SCENARIO
3. INDUSTRY GROWTH DRIVERS
3.1 Growth in high income households
3.2 Preferred choice of the young and affluent
3.3 Luxury car manufacturers entering used car market
4. EMERGING TRENDS IN THE INDUSTRY
4.1 Global companies are eyeing India as a manufacturing base
4.2 Players diversifying offerings
4.3 Increase in number of dealerships across India
5. GOVERNMENT REGULATIONS & INITIATIVES
6. SWOT ANALYSIS
6.1 Strengths
6.1.1 Feel good factor
6.1.2 Increased investments in automotive sector
6.1.3 Margins
6.2 Weaknesses
6.2.1 Affordability
6.2.2 Environment concerns
6.3 Opportunities
6.3.1 Luxury car manufacturers entering used car market
6.3.3 Increasing income levels
6.4 Threats
6.4.1 Excise Duty
6.4.2 Rising oil price
6.4.3 Infrastructure
6.4.4 Rising Competition
7. PORTERS 5 FORCES
7.1 Bargaining power of buyers
7.2 Bargaining power of suppliers
7.3 Threat of substitutes
7.4 Rivalry among existing players
7.5 Threat of new entrants
8. KEY PLAYERS
8.1 BMW
8.2 Mercedes Benz
8.3 Audi
9. THE HERFINDAHL-HIRSCHMAN INDEX
10. INDUSTRY PERFORMANCE
11. FORECAST
12. ANNEXURE
1.1 Structure of the Industry
1.1.1 Premium compact segment
1.1.2 Entry-level luxury/compact executive cars
1.1.3 Mid-luxury/executive cars
1.1.4 High-end luxury/full-size luxury cars
1.1.5 Ultra-luxury cars
1.1.6. Luxury SUV/Crossover
1.2 Consumers
1.2.1 Consumer Classification
1.2.2 Spending Pattern
2. DEMAND SUPPLY SCENARIO
3. INDUSTRY GROWTH DRIVERS
3.1 Growth in high income households
3.2 Preferred choice of the young and affluent
3.3 Luxury car manufacturers entering used car market
4. EMERGING TRENDS IN THE INDUSTRY
4.1 Global companies are eyeing India as a manufacturing base
4.2 Players diversifying offerings
4.3 Increase in number of dealerships across India
5. GOVERNMENT REGULATIONS & INITIATIVES
6. SWOT ANALYSIS
6.1 Strengths
6.1.1 Feel good factor
6.1.2 Increased investments in automotive sector
6.1.3 Margins
6.2 Weaknesses
6.2.1 Affordability
6.2.2 Environment concerns
6.3 Opportunities
6.3.1 Luxury car manufacturers entering used car market
6.3.3 Increasing income levels
6.4 Threats
6.4.1 Excise Duty
6.4.2 Rising oil price
6.4.3 Infrastructure
6.4.4 Rising Competition
7. PORTERS 5 FORCES
7.1 Bargaining power of buyers
7.2 Bargaining power of suppliers
7.3 Threat of substitutes
7.4 Rivalry among existing players
7.5 Threat of new entrants
8. KEY PLAYERS
8.1 BMW
8.2 Mercedes Benz
8.3 Audi
9. THE HERFINDAHL-HIRSCHMAN INDEX
10. INDUSTRY PERFORMANCE
11. FORECAST
12. ANNEXURE
LIST OF TABLES AND FIGURES
Figure 1 Market Growth (no. of units, 2006-2015E)
Figure 2 Attribute preferences for customers (%)
Figure 3 Structure of the industry
Figure 4 Consumer Classification
Figure 5 Consumer spending Pattern
Figure 6 Number of units sold (2010-2011)
Figure 7 Growth in high income households (2010-2015E)
Figure 8 Number of households (2005-2025E)
Figure 9 Aggregate annual disposable income (INR tn, 2005-2025E)
Figure 10 Consumer base
Figure 11 Wheels in demand
Figure 12 Pre owned cars from authorized dealers
Figure 13 Manufacturing base in India
Figure 14 Players diversifying offerings
Figure 15 Dealerships in India
Figure 16 Aspiration brand (Age group 50-65 years)
Figure 17 Aspiration brand (Age group 22-28 years)
Figure 18 Contribution of Automotive sector in total GDP
Figure 19 Players entering used car market
Figure 20 Wealth of individuals (INR trillion, FY11-FY16E)
Figure 21 Impact of excise duty on operating profit margins (FY2007-FY2011)
Figure 22 BMW Market share in India (%, 2006-2009)
Figure 23 Mercedes Benz Market Share in India (%, 2006-2009)
Figure 24 Audi Market Share in India (%, 2006-2009)
Figure 25 Market Concentration
Figure 26 Trend in luxury car sales (monthly,July’10-Nov’11)
Figure 27 Change in working population (aged 20-64) over 2005-2025
Figure 28 Per cent age share of car market (Country wise)
Figure 29 Growth of individual wealth (2009-2010:2012-2013E)
Figure 30 HNWIs in India (2012E)
Figure 31 Per Capita GDP Growth (2005-2025E)
Figure 32 Luxury Retail in India (2007-2013E)
Figure 33 Dealership expansion plans (2012-2015E)
Figure 34 Luxury Goods: Sales Growth (2008-2010)
Figure 35 Luxury Goods forecast growth (US$, 2010-2015)
Table 1 Price range (INR mn, Segment wise)
Table 2 Price range (INR mn, Major Players)
Table 3 Negotiating Leverage of Buyers
Table 4 Negotiating Leverage of Suppliers
Table 5 Threat of Substitutes
Table 6 Degree of Rivalry
Table 7 Threat of New Entry
Table 8 Trend in luxury car market share (FY10-YTD FY12)
Figure 1 Market Growth (no. of units, 2006-2015E)
Figure 2 Attribute preferences for customers (%)
Figure 3 Structure of the industry
Figure 4 Consumer Classification
Figure 5 Consumer spending Pattern
Figure 6 Number of units sold (2010-2011)
Figure 7 Growth in high income households (2010-2015E)
Figure 8 Number of households (2005-2025E)
Figure 9 Aggregate annual disposable income (INR tn, 2005-2025E)
Figure 10 Consumer base
Figure 11 Wheels in demand
Figure 12 Pre owned cars from authorized dealers
Figure 13 Manufacturing base in India
Figure 14 Players diversifying offerings
Figure 15 Dealerships in India
Figure 16 Aspiration brand (Age group 50-65 years)
Figure 17 Aspiration brand (Age group 22-28 years)
Figure 18 Contribution of Automotive sector in total GDP
Figure 19 Players entering used car market
Figure 20 Wealth of individuals (INR trillion, FY11-FY16E)
Figure 21 Impact of excise duty on operating profit margins (FY2007-FY2011)
Figure 22 BMW Market share in India (%, 2006-2009)
Figure 23 Mercedes Benz Market Share in India (%, 2006-2009)
Figure 24 Audi Market Share in India (%, 2006-2009)
Figure 25 Market Concentration
Figure 26 Trend in luxury car sales (monthly,July’10-Nov’11)
Figure 27 Change in working population (aged 20-64) over 2005-2025
Figure 28 Per cent age share of car market (Country wise)
Figure 29 Growth of individual wealth (2009-2010:2012-2013E)
Figure 30 HNWIs in India (2012E)
Figure 31 Per Capita GDP Growth (2005-2025E)
Figure 32 Luxury Retail in India (2007-2013E)
Figure 33 Dealership expansion plans (2012-2015E)
Figure 34 Luxury Goods: Sales Growth (2008-2010)
Figure 35 Luxury Goods forecast growth (US$, 2010-2015)
Table 1 Price range (INR mn, Segment wise)
Table 2 Price range (INR mn, Major Players)
Table 3 Negotiating Leverage of Buyers
Table 4 Negotiating Leverage of Suppliers
Table 5 Threat of Substitutes
Table 6 Degree of Rivalry
Table 7 Threat of New Entry
Table 8 Trend in luxury car market share (FY10-YTD FY12)
