Young, wealthy consumers fuel luxury car boom in India
Lamborghini is exploring the possibility of opening a fourth showroom in India.
NEW DELHI, March 22: Lamborghini and Mercedes-Maybach are set to expand their presence in India as the country's rapidly growing base of young, affluent consumers increasingly splurge on super-luxury cars, helping to drive sales to record levels.
Lamborghini, coming off a year of record sales, is exploring the possibility of opening a fourth showroom in India. Meanwhile, Mercedes-Maybach sees the country as a potential top-five market by sales, executives from both companies revealed.
"India, for us, is an asset... there is huge potential for the future," said Stephan Winkelmann, Lamborghini's CEO, during a virtual roundtable with reporters. "There is the idea of having maybe a fourth dealership, but this is still something in the early stages."
This optimism is fueled by the changing demographic landscape in India, with a growing generation of younger customers driving the shift. Winkelmann noted that the average age of a Lamborghini buyer in India is under 40, making it the youngest market for the brand, following China. "You have a lot of successful startups in India, and young, high-net-worth individuals stepping into this type of car. So this is positive for us," he added.
India's rapid economic growth has led to a fundamental shift in attitudes toward luxury purchases, particularly among younger generations. These buyers differ from their older counterparts, who were traditionally more focused on saving. Today, executives from successful startups cashing out after public listings and younger members of family-run businesses spending with fewer reservations are driving demand for luxury goods – from cars and watches to homes.
However, luxury car sales still make up just over 1% of India's 4 million vehicles-a-year market, with super-luxury vehicles accounting for an even smaller share.
Lamborghini had its best year in India in 2024, selling 113 cars, a 10% increase compared to 2023. Winkelmann anticipates further growth in 2025, buoyed by a strong order book that stretches 18 months into the future. Half of its sales came from the Urus SUV, which carries a starting price of around $500,000 before taxes, while the remaining sales were driven by the Huracan and Revuelto sports cars.
Mercedes-Maybach, in contrast, achieved 145% growth in India in 2024, selling 500 of its super-luxury cars, each priced upwards of $325,000, in a market where the average car costs about $15,000. Daniel Lescow, head of Mercedes-Maybach, said that India had already reached the top 10 markets for the brand and has the potential to break into the top five, depending on the pace of growth in the luxury market.
"I'm convinced there's so much more potential... so many opportunities here," Lescow told Reuters, expressing confidence in India's future as a key market for Mercedes-Maybach.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab Times
11 hours ago
- Arab Times
Mercedes-AMG GLE and GLS now available in MANUFAKTUR Arctic Silver edition
KUWAIT CITY, June 12: By meeting a wide range of customer needs, the broad Mercedes-AMG product portfolio has earned remarkable popularity in the high-end SUV market. The extensive selection of vehicles includes the GLE, a versatile SUV or elegant coupé, and the GLS, a large SUV designed to meet the highest expectations in terms of performance, space, and prestige. The engine range includes two 3.0-litre in-line six-cylinder turbo engines as mild or plug-in hybrids and the legendary AMG 4.0-litre V8 biturbo engine. Regardless of the selection, this guarantees more than enough power for a superior driving experience. With the fully variable AMG Performance 4MATIC+ all-wheel drive provided as standard, optimal traction is ensured even on slippery surfaces or for outings in easy terrain. Now the MANUFAKTUR Arctic Silver edition opens up an even bigger range of exclusive options to these prestigious high-performance SUVs. With the new MANUFAKTUR high-tech silver magno finish, an AMG and edition-specific matte finish is available for the first time, featuring black and red accents that deliver attractive contrasts. It starts with multi-spoke forged wheels in 22-inch (GLE SUV and coupé) or 23-inch (GLS) formats, with a matte black finish and enhanced with red flanges. The wheel hub covers feature the AMG logo combined with laurel wreath elements. Red brake callipers on the front and rear axles add a touch of sporty elegance to the look. This is further accentuated by the AMG Night package, with high-gloss black exterior elements, including the front splitter and decorative strip on the AMG skirt panel, the wing mirror housings, the insert in the AMG side skirt panels, the window surrounds, and the trim strip on the AMG rear apron. Combined with the dark-chrome tailpipe trims, the matte black roof railing and heat-insulating dark-tinted windows behind the B‑pillars provide strong contrasts. Interior with numerous MANUFAKTUR features The interior of the limited special edition also incorporates the contrasting theme with black and red motifs. The AMG MANUFAKTUR features Carmine Red / Black Exclusive Nappa Leather upholstery with rhombus quilting, complementing the MANUFAKTUR interior package. It also includes MANUFAKTUR door sill panels with illuminated AMG lettering, MANUFAKTUR rear-seat headrests, and the edition logo in bright chrome on the passenger side. Further enhancing the special edition's unique look are the AMG performance steering wheel in carmine redNappa leather and the AMG carbon decorative elements with red embroidery, not offered in any other model. Also contributing to the unique ambience are the AMG crests stamped into the front headrests and the black AMG door sills with edition-specific white illumination. This is complemented by edition-specific handrests with AMG logos and deep-pile floor mats with a red-stitched AMG logo on black leather. The MANUFAKTUR Arctic Silver edition is now available for order in all Mercedes-AMG GLE and GLS versions. The market launch will take place in July 2025. The offer is limited to 450 units worldwide. To learn more about the MANUFAKTUR Arctic Silver edition and stay updated on the latest Mercedes-Benz models, visit Al Mulla Automobiles Mercedes-Benz showroom in Al Rai, the Mercedes-Benz Boutique in The Avenues, or call the customer centre at 1887888. For the latest updates, follow @MercedesBenzKuwait on Instagram or visit
Kuwait Times
2 days ago
- Kuwait Times
Global alarm as China's critical mineral export curbs take hold
Automakers warn of production halts; executives, diplomats scrambling to meet BEIJING: Alarm over China's stranglehold on critical minerals grows as global automakers joined their US counterparts to complain that restrictions by China on exports of rare earth alloys, mixtures and magnets could cause production delays and outages without a quick solution. German automakers became the latest to warn that China's export restrictions threaten to shut down production and rattle their local economies, following a similar complaint from an Indian EV maker last week. China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The move underscores China's dominance of the critical mineral industry and is seen as leverage by China in its ongoing trade war with US President Donald Trump. Trump has sought to redefine the trading relationship with the US' top economic rival China by imposing steep tariffs on billions of dollars of imported goods in hopes of narrowing a wide trade deficit and bringing back lost manufacturing. Trump imposed tariffs as high as 145 percent against China only to scale them back after stock, bond and currency markets revolted over the sweeping nature of the levies. China has responded with its own tariffs and is leveraging its dominance in key supply chains to persuade Trump to back down. Trump and Chinese President Xi Jinping are expected to talk this week, White House spokeswoman Karoline Leavitt told reporters on Tuesday, and the export curbs are expected to be high on the agenda. 'I can assure you that the administration is actively monitoring China's compliance with the Geneva trade agreement,' she said. 'Our administration officials continue to be engaged in correspondence with their Chinese counterparts.' Trump has previously signaled that China's slow pace of easing the critical mineral export controls represents a violation of the agreement reached last month in Geneva. Magnets held up at Chinese ports Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while license applications make their way through the Chinese regulatory system. The restrictions have triggered anxiety in corporate boardrooms and nations' capitals - from Tokyo to Washington - as officials scrambled to identify limited alternative options amid fears that production of new automobiles and other items could grind to a halt by summer's end. 'If the situation is not changed quickly, production delays and even production outages can no longer be ruled out,' Hildegard Mueller, head of Germany's auto lobby, told Reuters on Tuesday. Chinese state media reported last week that China was considering relaxing the curbs for European semiconductor firms while the Ministry of Foreign Affairs has said it would strengthen cooperation with other countries over its controls. However, rare-earth magnet exports from China halved in April as exporters grappled with the opaque licensing scheme. Frank Fannon, a minerals industry consultant and former US assistant secretary of state for energy resources during Trump's first term, said the global disruptions are not shocking to those paying attention. 'I don't think anyone should be surprised how this is playing out. We have a production challenge (in the US) and we need to leverage our whole of government approach to secure resources and ramp up domestic capability as soon as possible. The time horizon to do this was yesterday,' Fannon said. Diplomats, automakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources told Reuters, as shortages threatened to halt global supply chains. A business delegation from Japan will visit Beijing in early June to meet the Ministry of Commerce over the curbs, and European diplomats from countries with big auto industries have also sought 'emergency' meetings with Chinese officials in recent weeks, Reuters reported. India, where Bajaj Auto warned that any further delays in securing the supply of rare earth magnets from China could 'seriously impact' electric vehicle production, is organizing a trip for auto executives in the next two to three weeks. In May, the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major automakers raised similar concerns in a letter to the Trump administration. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras,' the Alliance for Automotive Innovation wrote in the letter. — Reuters
Kuwait Times
05-06-2025
- Kuwait Times
Modi's soaring Indian aviation ambitions face many headwinds
Challenges include plane shortages, infrastructure, regulation NEW DELHI: Prime Minister Narendra Modi's high-profile attendance at a global airlines conference this week underscores how much India is banking on a boom in aviation to support wider development goals, but headwinds to its ambitions are gathering force. Undeterred by the uncertainty gripping the aviation sector globally due to trade tensions and shaky consumer confidence, India's biggest airlines are ploughing ahead with orders for new planes, following record deals two years ago. However, the rapid pace of growth risks losing steam if plane shortages, infrastructure challenges and taxation issues are not addressed, industry officials warned at the International Air Transport Association's annual meeting. Hostilities with neighbor Pakistan are also causing Indian airlines to take large, expensive detours around Pakistani airspace, requiring more fuel and passenger care. Carriers have asked the Indian government to waive some fees and provide tax exemptions, people familiar with the matter have told Reuters, but it is not clear if it will provide any help, despite its high-flying rhetoric. New Delhi says it wants India to be a job-creating global aviation hub along the lines of Dubai, which currently handles much of India's international traffic. 'In the coming years, the aviation sector is expected to be at the center of massive transformation and innovation, and India is ready to embrace these possibilities,' Modi told global aviation leaders on Monday. But the transformation will require billions of dollars of investment in airports and industry supply chains, and a revamp of regulations, industry officials said. Punching below its weight The numbers look promising. IATA forecasts passenger traffic in India will triple over the next 20 years and the country has set a target of increasing the number of airports to as many as 400 by 2047, up from 157 in 2024. 'We are fast emerging as a strategic connector country ... India is a natural connector of the skies and aviation as well,' India's Civil Aviation minister Ram Mohan Naidu told global airline CEOs in New Delhi. Already the world's third-largest aviation market by seats after the US and China, there is significant potential for India to grow. The world's most populous nation, India accounts for around 17.8 percent of people but only 4.2 percent of global air passengers, according to IATA. A record 174 million Indian domestic and international passengers flew in 2024, compared to 730 million in China, IATA data shows. 'The outlook is potentially a very positive one for both the Indian economy and air transport industry. However, such outcomes are not guaranteed,' IATA said in a report on the Indian market. Industry executives and analysts said more work lies ahead in scaling aviation-related infrastructure, updating rules, lowering taxes and making life easier for airlines. 'Even the regulators will agree that they need to update their regulation, because there is a reason why India is not punching above its weight. In fact, it is punching very much below its weight,' Association of Asia Pacific Airlines Director General Subhas Menon said. Dubai-based Emirates, for example, says capacity restrictions on foreign airlines need to be relaxed for the industry to reach its full growth potential. 'For every seat we offer, particularly in the peaks, we've got three to 10 people trying to get it,' Emirates President Tim Clark told reporters. Among other problems, India lacks enough domestic maintenance, repair and overhaul facilities to care for its fleet, making it overly dependent on foreign shops at a time of stiff competition for repair slots, particularly for engines. Global airlines have aircraft sitting on the ground because there aren't enough facilities available for servicing them, IATA Director General Willie Walsh said. 'I think airframe maintenance is a huge opportunity for India because you require labor and you require skills. And that's something that I know India is investing in,' Walsh said, in response to a Reuters question at a press conference. Airline growth globally is being tempered by extended delays to deliveries of new, more fuel-efficient planes due to supply chain issues. India's largest airline IndiGo has been leasing aircraft to allow it to expand internationally while it waits for new planes. This week it partnered with Air France-KLM, Virgin Atlantic and Delta to extend the reach of IndiGo tickets using those airlines' networks. — Reuters
