Why super luxury cars above Rs 1 crore have become popular in Tamil Nadu

The people of Tamil Nadu are traditionally seen as conservative and usually conservative when it comes to flaunting their wealth, unlike their compatriots in northern or western India. This view may not hold any longer as the country is now the fastest growing market for luxury cars, priced at more than 1 crore, for luxury car maker Mercedes-Benz India.

According to the company, doctors, lawyers, senior IT professionals and young entrepreneurs are gearing up for Mercedes-Maybach, GLS-Maybach, GT63 AMG, G63 AMG, G350 – at prices ranging from 1.7 to 3 crore. Among other luxury cars, the S-Class and GSL Maybach are bestsellers.

“If you see the super luxury car growth for us in Tamil Nadu, it’s 90 percent in the state, which is the highest interstate growth rate recorded for our brand. Tamil Nadu also recorded 35 percent higher growth compared to India’s 26 percent growth in Total luxury cars for Mercedes in the first quarter of 2022,” said Santosh Ayer, Vice President Sales and Marketing, Mercedes-Benz India. business line. However, the company did not share absolute numbers in terms of cars sold.

The strong growth of luxury cars as well as luxury cars in Tamil Nadu indicates that the luxury market in the state is maturing faster and that social and economic consumption is also higher. “This mostly feeds younger customers including a new group of people, in addition to traditional buyers,” Ayer added.

However, in terms of Mercedes-Benz super luxury car volumes, Mumbai and Delhi still rank first in the markets, followed by Bengaluru and Tamil Nadu.

“As the growth is now faster in Tamil Nadu, it will catch up with other big cities over a period of time. We now have a strong network here to take advantage of this momentum. In addition to two dealers in Chennai, we have representatives in Madurai and Coimbatore and have a service center in Salem. .

sales performance

The share of luxury cars (₹1 crore plus) in total Mercedes-Benz sales increased from 12 per cent in 2018 to 29 per cent in 2022, driven by countries such as Tamil Nadu and others. In 2021, the company’s sales of ultra-luxury cars exceeded 2,000, which carried the previous showroom price of more than Rs 1 crore, while sales of luxury cars totaled 11,242 units.

According to Knight Frank’s The Wealth Report 2022, among the major Indian cities, Bengaluru saw the highest growth in the number of UHNWIs (Ultra High Net Worth Individuals with net assets of $30 million or more) at 17.1 percent to 352 followed by Delhi with 12.4 percent to 210, and Mumbai 9 percent to 1,596 in 2021.

Chennai reported 15 per cent growth to 160. But Chennai along with Ahmedabad is expected to see 66 per cent growth in the number of unqualified people during 2021-2026, the second highest growth rate after Bengaluru (89 per cent).

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May 13, 2022

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