Mumbai: Luxury car makers such as Mercedes-Benz, BMW and Audi are set to launch several new sport-utility vehicle models over the next three months, hoping to further deepen their foothold in this growing segment fuelled by evolving lifestyle trends and changing preferences of India’s affluent buyers.
Such premium vehicles priced at more than 50 lakh currently make up as much as 60% of sales at these companies, attracting a broader set of buyers including families and adventure enthusiasts, according to data collated by Jato Dynamics. Versatility and imposing road presence of SUVs over luxury sedans is finding increasing favour among Indian buyers. Mercedes-Benz with the largest portfolio of a dozen SUVs, grew sales by 41% in Q1 2024 "buoyed primarily by record sales of GLA, GLC, GLE and GLS SUVs in the first quarter of 2024 and we expect this demand to remain strong in coming months," said Santosh Iyer, MD, Mercedes-Benz India.
Preference for Road Trips
Iyer said the company is seeing strong demand for its top-end SUV models as more customers are now preferring road trips for intercity travel--either for business or leisure. Mercedes-Benz SUVs retail from INR 52 lakh for GLA to INR 4 crore for the AMG G 63. It plans to launch a facelift of its GLB SUV soon.
Waitlists extending up to a year for popular Mercedes-Benz models like GLC underscore the robust demand, said Ravi Bhatia, president, Jato Dynamics.
“At Audi India, we have a strong SUV portfolio and have witnessed strong demand for our cars including the Q3, Q5 and Q7. Our Q range is attracting many buyers; we’re witnessing good demand from growing markets especially tier-II cities,” said Balbir Singh Dhillon, head of Audi India.
He said SUVs, including electric models, comprised more than 60% of Audi India’s sales in the March quarter.
“We will introduce special editions across our popular Q range very soon,” said Dhillon, adding the company will be soon introducing the Q8 model at about INR 1.6 crore.
Customers who travel a lot with family and friends like the space and comfort that SUVs offer. "Consumers who enjoy long driving and off-roading experiences, relish the dynamics and power delivery of a BMW all-wheel drive system. Good ground clearance and suspension help in taking on any road conditions with comfort while an elevated seating position helps with visibility and ease of navigation,” said Vikram Pawah, president, BMW Group India.
BMW’s X1 is the company’s top-selling model with about 20% share of overall sales, followed by the X7.
With growing affluence and appetite for adventure among Indians, global luxury automakers are actively broadening their SUV offerings to lure India's elite with the latest tech, electrification and ultra-luxurious features, said Bhatia.
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