By Balbir Singh Dhillon
The Indian automobile industry is witnessing a major transformation, particularly in luxury. Traditionally dominated by established luxury carmakers, the market is now evolving rapidly, driven by shifting consumer preferences, economic growth, and technological advancements. This evolution is reshaping the definition of premium mobility, making it more diverse, digital, and experience-driven than ever before.
Luxury car preferences in India vary significantly based on geography. Buyers in Tier-II and Tier-III cities prioritise functionality, brand prestige, and an aspiration to climb the premium ladder. In contrast, urban consumers are more inclined toward innovation, embracing electric vehicles (EVs), advanced connectivity and sustainability-driven features.
A striking trend in the premium car market is the growing influence of young buyers. Many under 40, inspired by the You Only Live Once (YOLO) philosophy, are investing in luxury vehicles earlier in life. Rising disposable incomes, evolving lifestyles, and a desire for self-expression through high-end purchases are fuelling this shift.
At the same time, women are emerging as a key demographic in luxury car ownership. Increased financial independence, career progression, and evolving societal norms have led to more women purchasing premium vehicles.
Luxury car ownership is no longer just about the vehicle — it’s about the entire experience. Automakers are enhancing ownership journeys with exclusive loyalty programs, concierge services, and Al-driven predictive maintenance. Convenience has become a major focus.
Beyond convenience, experience-driven engagement is now a key differentiator. Bespoke lifestyle events, high-performance driving experiences, and private brand clubs foster a sense of exclusivity and community among luxury car owners.
Today’s luxury car buyers seek more than just premium aesthetics — they demand cutting- edge technology and personalisation. Today’s customers seek exclusivity, viewing their cars as an extension of their personality. This desire for personalisation is reflected in the significant investments some customers make, with many spending upwards of `50-70 lakh to tailor their vehicles to their tastes and preferences.
The retail landscape is undergoing a paradigm shift, with digitalisation and sustainability playing central roles in shaping dealership experiences. Automakers are rolling out tech- driven solutions that enhance customer engagement while streamlining operations for dealer partners. Dealerships are also evolving, offering more interactive and immersive experiences.
India’s luxury car market is poised for significant growth, driven by an expanding base of high-net-worth individuals and evolving consumer preferences.
The author is head, Audi India. Views expressed are personal and not necessarily those of financialexpress.com.