NEW DELHI, March 21 – The Indian luxury car market is experiencing a remarkable boom, with both Lamborghini and Mercedes-Maybach planning expansions to capitalize on the burgeoning demand from a new generation of wealthy consumers.
Lamborghini, fresh off a year of record sales globally, is currently exploring the possibility of opening a fourth showroom in India. Meanwhile, Mercedes-Maybach is viewing the country as a potential top-five market in terms of sales.
“India, for us, is an asset… there is a huge potential for the future. There is the idea of having maybe a fourth dealership, but this is still something in the early stages,” Stephan Winkelmann, Lamborghini’s CEO, told reporters at a virtual roundtable. This confidence underscores the Italian automaker’s commitment to the Indian market’s rapid growth, mirroring its increasing global footprint.
Winkelmann attributed the optimism to a “change in generation” and “momentum from younger customers,” noting that the average age of a Lamborghini buyer in India is below 40 – making it the youngest market after China. “You have a lot of startups in India which are very successful. You have very young, high net worth individuals which are stepping into this type of car. So this is positive for us.”
The luxury car surge is indicative of a broader shift in Indian consumer behavior. Rapid economic growth has brought about a fundamental change in attitudes regarding luxury purchases among younger generations. Unlike previous generations, the younger, affluent population is less concerned with saving and more inclined to embrace high-end goods.
This trend extends beyond automobiles. Executives at successful startups, along with younger members of established family businesses, are fueling the demand for luxury items, including cars, watches, designer bags, and exclusive properties.
While luxury car sales currently represent just over 1% of the 4 million vehicles sold annually in India, the potential for expansion is vast. Super-luxury cars represent an even smaller portion of the overall market, suggesting substantial growth potential.
Lamborghini had a stellar year in 2024, selling 113 cars in India, a 10% increase over the previous year. Winkelmann anticipates continued growth this year, citing a strong order book extending 18 months into the future.
Lamborghini’s Urus SUV, which has a starting price of nearly $500,000 before taxes, accounted for half of its sales, with the remainder coming from the Huracan and Revuelto sports cars.
Mercedes-Maybach experienced remarkable growth in India in 2024, achieving a 145% increase in sales and moving 500 super-luxury vehicles. These cars are priced upwards of $325,000, a reflection of the high-end nature of their clients in a market where the average car only sells for around $15,000.
Daniel Lescow, the head of Mercedes-Maybach, acknowledged that India is already a top-10 market for the brand and has the potential to break into the top five. He stated, “I’m convinced there’s so much more potential… so many opportunities here.”
The growth of the market remains reliant on factors such as how economic and cultural transformations shape the luxury car market. The shift in generation and economic expansion continue to be crucial to the sales of luxury cars.
