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Tag: Expensive cars

  • Why Luxury Car Sales Are Booming in India in 2022?

    The Indian market has always been an attractive lure for international business houses. Its deep history with the luxury and lifestyle goods industry is showcased in history through the Maharajas of yesteryears who were the ultimate consumers of luxury consumer goods. Be it fashion, accessories, beauty, health or automotive, various brands have found tremendous success within their folds.

    When the deadly virus struck in 2019, everything came to a standstill for a few months. Industries suffered and the global economic scenario was grim. As the world inched towards normalcy, the following months were uncertain and fraught with worry.

    A couple of years later, the world post the Covid-19 pandemic has returned with a vengeance. The luxury car segment has reached its pre-pandemic sales levels and is, in fact, set to grow even further. Valued at USD 1.06 billion in 2021, the Indian Luxury Car Market is set to reach USD 1.54 billion by 2027 registering a 7% CAGR growth.

    “We have entered 2022 with a very strong order book. From what we have seen in the first five months, the trend looks positive,”  says Lamborghini India Head Sharad Agarwal.

    “Post Covid we have seen a huge comeback from the market. Our demand currently is one of the best ever demands we have seen in our existence in India. During the first quarter we did close to 4,000 cars and now an order bank of around 5,000 cars we have moving forward. This kind of a strong booking, order bank, we have never seen in the past,” said Santosh Iyer, vice president, sales and marketing, Mercedes-Benz India

    Luxury Cars and the Indian Market
    Why Did Luxury Car Sales Surge in India?
    Future of the Luxury Cars in India

    Luxury Cars and the Indian Market

    India welcomed its first luxury car brand Mercedes-Benz into the market in 2004. It enjoyed a market monopoly till 2006 when BMW made its appearance in India, followed quickly by Audi in 2007.

    Over the years, these three companies have vied for that top spot in terms of sales volume and have replaced each other a few times. The primary reason for this was new product launches, particularly in the smaller and more affordable models.

    2010 was the year when these top three companies saw a high surge in sales numbers and recorded YOY growth of almost 82%. This was due to the rise in the affluent population. The Indian economy was surging and so was the disposable income. This marked an increase in consumer confidence and the willingness to splurge on a premium car.  

    The biggest setback to the automobile industry came in the year 2016. The primary reason? Demonetization. Of course, the curb on the sale of diesel vehicles in the first half of the year had also contributed to it. So, the industry saw a marked drop in sale volume for the first time in a decade.

    2017 saw the Indian government revising its GST structure that was applicable to luxury cars. Despite this and the fact that the overall sale volume growth was slow, the luxury car industry bounced back and the sales number was back on track. 2017 became the best year for all the players of luxury cars in the Indian market.

    Why Did Luxury Car Sales Surge in India?

    Over the next decade, while the industry saw ups and downs, the broader optimism persisted showcased via sales numbers. Even the average age of buyers dropped from 45 years to the mid-30s.

    A new India was emerging with a new breed of entrepreneurs. Companies had begun offering higher and healthier pay packets to individuals passing out from top colleges and institutes.

    All this added to the pool of ever-increasing high-net-worth individuals creating a bigger pool of prospective buyers. The economic growth and development in tier 2 and tier 3 cities of the country meant an increase in demand for luxury cars within these cities as well.

    There is a strong reason for this surge in demand and the confidence in continued growth and demand for luxury vehicles in India.

    • Currently, India is adding the second highest number of billionaires to the world.
    • The buyers of today are first-generation entrepreneurs as opposed to the third or fourth generations before.
    • The customer base has expanded greatly.
    • Luxury car brands have increased the localisation of production, manufacturing and assembling to avoid high import duties.
    • This has greatly reduced the total cost of these cars making them attractive to the price-sensitive Indian market.
    • Pre-owned luxury cars have also found a large niche within the market.

    The other segment within the luxury car market that is making waves with the new generation is the launch of electric vehicles. The advanced technology that supports electric vehicles makes it an attractive buy. Most luxury car brands are venturing into the electric car segment and also making plans to localise their units to make their prices attractive to their buyers

    Luxury Car Sales in India
    Luxury Car Sales in India

    Future of the Luxury Cars in India

    As a market, India is price sensitive and it is no different even in the premium luxury segment. Luxury car brands have studied, understood and addressed the concerns of the Indian market.

    There is a huge scope of growth for this segment within the Indian market as currently the penetration of these brands only stands at 1%. With the fast-paced growth of the Indian economy and the quick rise of a new generation of billionaires, the future looks bright.

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    Conclusion

    The luxury car market is expected to see new entrants with every new launch and product. The growth of this segment looks remunerative driven by network expansion, deeper penetration into other markets with new and pre-owned car dealerships and expansion into complementary functions including car financing and customisation.

    FAQs

    Which luxury car is sold the most in India?

    Mercedes-Benz E-Class is the most sold luxury car in India. The luxury carmaker sold 2,839 units in FY22.

    What has happened to the demand for luxury cars in India?

    The demand for luxury cars was impacted due to the covid 19 lockdown but the demand drastically increased in 2022.

    Is the luxury car market growing?

    The luxury car market was valued at USD 1 billion in 2021 and is expected to reach USD 1.54 billion in 2027.

  • Rolls-Royce Innovations | Why Rolls-Royce Cars are So Expensive?

    Everyone has their type and preferences when it comes to cars. Cars are something, the interest which is shared by many.

    In the modern days, there are many types of cars available. For Example- Sedan, SUVs, Coupe, Convertible, Hatchback, etc. One of the common interests of people is luxury cars. Some examples of luxury cars include Range Rover, Mercedes, BMW, Rolls-Royce, and more.

    Rolls-Royce is probably the love and dream of many. Having this car is a status symbol but buying one can create a huge hole in the pocket. As Rolls-Royce is considered one of the most expensive cars. Get insights into the reasons why Rolls-Royce cars are so expensive.

    The History of Rolls-Royce
    Rolls-Royce and Its Innovations
    What Makes Rolls-Royce So Expensive?

    The History of Rolls-Royce

    Rolls-Royce Logo
    Rolls-Royce Logo

    Rolls-Royce’s history didn’t begin with the cars. In earlier times, it was an electrical and mechanical business rooted by Henry Royce in 1884.

    In the year 1904, Royce made his first motor car. In the same year, Royce met Charles Rolls. Charles’s company used to sell quality cars in London.

    The collaboration between the two led to the formation of the Rolls-Royce company in 1906. The first launch was the six-cylinder Silver Ghost. In the very first year, it got the status of the best car in the world.

    In 1990, the company formed a joint venture with Bavarian Motor Works (BMW) of Germany the aero engines. BMW got the license of the rights of the name and logo of Rolls-Royce. Since then, BMW is the parent organization of Rolls-Royce.

    Rolls-Royce and Its Innovations

    Rolls-Royce’s innovations are traced back to the time of World War I. During the first world war, air wars were happening. This created a need for strong and sturdy aircraft. So, as a result, Royce came up with his design of the first aircraft engine- The Eagle.

    The ‘R’ Engine

    Rolls-Royce R Engine
    Rolls-Royce R Engine

    In the late 1920s, Rolls-Royce indulged in the development of the ‘R’ engine. These engines were made especially for air racing. In the year 1931, it created a world record of airspeed at 400mph.

    Merlin Engine

    Rolls-Royce Merline Engine
    Rolls-Royce Merline Engine

    Rolls-Royce has also indulged in the development of Merlin engines. Their Merlin engine motorized Hawker Hurricane and Supermarine Spitfire in the battle of Britain. The demand for Merlin engines increased during the second world war. This demand helped Rolls-Royce earn a position of a strong contender in the aero force from a small company.

    Aero gas Turbine

    Rolls-Royce Aero Gas Turbine
    Rolls-Royce Aero Gas Turbine

    The company has also developed aero gas turbines. They entered the market of civil aviation with Vickers Viscount, the then British aircraft line.

    Trent 1000

    Rolls-Royce Trent 1000
    Rolls-Royce Trent 1000

    Trent 1000 of Rolls-Royce is the only engine suitable for Boeing 787 Dreamliner. In the year 2006, it ran for the first time.

    There are many other engine innovations made by Rolls-Royce. For example Trent 7000, Trent XWB-84, Trent XWB-97, and more.

    At present, Rolls-Royce has a strong deal in five products and services. These are Defence products and services, Civil Aerospace, Power Systems, Electrical, and R2 Data Labs.

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    What Makes Rolls-Royce So Expensive?

    Rolls-Royce is an age-old company that has aged like fine wine. Right from the beginning, it has never failed to develop and deliver the best quality.

    Rolls-Royce cars with their fine and best quality are considered one of the most expensive cars in the world. There are certain reasons which make it so expensive. These are as follows:

    Why Rolls-Royce Car are so Expensive?

    Special Models and Exquisite Features

    One of the most important reasons for the expensiveness of Rolls-Royce is their special car models with exquisite features. The buyers sometimes come up with different ideas to give their Rolls-Royce an exquisite and personalized look.

    For example- Once a buyer requested a car finish that was diamond-studded. Rolls-Royce was keen to take up this challenge. The excellent team of the company crushed many real diamonds. They then mixed these with the color. In this way, with the help of this mix, they added the desired shine to the car.

    The most expensive model of the company now is the Phantom. The pricing of Phantom starts from $450,000.

    Posh Headliners

    The starlight headliner of Rolls-Royce
    The starlight headliner of Rolls-Royce

    The second feature that makes Rolls-Royce super expensive is its headliners. The Rolls-Royce cars come with star-studded headliners. This makes for an exclusive atmosphere for the cars.

    Making these headliners is a super lengthy and effort-borne process. These are created by piercing almost one thousand holes with fiber-optic threads.

    Sometimes, buyers ask for personalization in this feature as well. Since these are star-studded, few prefer to add specific effects of light.

    Exclusive Procedure for Color Coating

    Every car of Rolls-Royce undergoes a special color coating process. The coating process takes a lot of time even before the color selection begins. At last, seven coats of color are used to get the final result.

    This feature is unique and expensive because this too offers the option of customization. Buyers are not limited to selecting from the standard shades of color. They can choose a color as rare as their pet’s color. In such cases, the company makes use of DNA materials to obtain the accurate shade.

    This specific style of color coating is a long process. It requires a great amount of time and effort. Thus, another reason that makes Rolls-Royce cars expensive.

    The Soundproof System

    The best and the most important feature that makes Rolls-Royce cars stand out is its soundproof system. The cars are made with driving mechanisms that are soundproof. About 300 pounds of insulation is added around the cabin while making the cars. This enables the cars to run with no sound at all.

    This feature makes the car’s environment friendly. The soundless rides prevent noise pollution.

    The soundless system adds a luxurious and chic touch to the cars. Thus, making Rolls-Royce expensive.

    A Powerful Identity

    Over the years, the company has been able to create a huge identity for itself in the world. The brand name Rolls-Royce is considered a status symbol for the elite class.

    Rolls-Royce Car Golden Logo
    Rolls-Royce Car Golden Logo

    Almost every billionaire in the world owns a Rolls-Royce car in their luxury car collection. The biggest collection of Rolls-Royce cars is 500 cars. This collection belongs to the Sultan of Brunei. This is the most expensive collection held by a person.

    Rolls-Royce has built a powerful identity for itself in the world. Its identity makes it an associate of luxury. This makes it one of the most expensive in the world.

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    Conclusion

    Rolls-Royce is one word that is exclusive. It makes cars that are one of a kind. The company creates such unique and specific designs for the buyers that if another person wants the same, they have to take the permit from the original buyer.

    The perfect and exclusive blend of the features makes the company stand out. Most importantly it is the luxury and the personalized customization that makes Rolls-Royce expensive.

    FAQs

    Why Rolls-Royce cars are so expensive?

    The prime reason behind the Rolls-Royce cars being expensive is their quality. Another reason can be considered as they are counted among the luxury product that can be custom-made and comes with a number of luxury services. Heseveralst of Rolls-Royce is always expected to be more than the normal range.

    How many Rolls-Royce is in India?

    The exact number for Rolls-Royce in India is still a debatable topic. However, the estimated number is around 25-30 units in India.

    Does Rolls-Royce break down?

    There is one myth surrounding Rolls-Royce that it does not break down. However, in reality, Rolls-Royce can also break down irrespective of the details with which they have been made.