Fueled by a growing economy, shifting consumer mindsets, and a diversifying buyer base, India’s love affair with luxury cars, dating back to the early 20th century, has seen a resurgence post-COVID, with sales consistently breaking records each year
By Kanaad Chatterjee
The relationship between India’s royalty and luxury cars like Rolls Royce dates back to the early 20th century. India’s first tryst with Rolls Royce happened in 1907 when the 40/50hp Silver Ghost completed a 620-mile trail traversing the mountain passes of the Western Ghats. It established the brand as a reliable carmaker reputed for building reliable and sturdy vehicles. In fact, with three showrooms in Bombay, Calcutta and Delhi by the early 1920s, one in five Rolls Royces were being sold to Indian customers And while we can’t verify the popular myth of a Maharaja importing 10 Rolls Royce cars to clean the streets and pick garbage in India, the more recent incident of Mandhatasinh Jadeja buying the “Star of India” Rolls Royce, effectively bringing the multi-million dollar Rolls Royce back to the family for the first time since the Maharaja had sold it in 1968, certainly reaffirms the taste and demand for luxury cars in India.
While the taste and penchant for luxury vehicles has always existed, it wasn’t until after COVID that it registered an exponential rise in sales, consistently breaking records every consequent year. The boom in sales doesn’t really come as a surprise, given India’s economic rise post-COVID.
India’s steady economic growth has produced wealthy second-generation business owners, a class of start-up professionals as well as high-paid executives who epitomise the ‘YOLO’ (You Only Live Once) effect which refers to a trend where consumers, influenced by the realisation of life’s unpredictability—especially highlighted during the COVID-19 pandemic—decide to indulge in luxury purchases, including high-end vehicles. This mindset shift has led to an increase in luxury car sales, as individuals seek to enjoy the present and reward themselves with premium experiences and products.
The billion-dollar three-day pre-wedding extravaganza that brought the who’s who to the small Indian town of Jamnagar clearly set the tone for the appetite that Indians have for luxe experiences. It’s no surprise then that French luxury retailer Galeries Lafayette is also set to enter India in partnership with the Aditya Birla Group. Spanish luxury fashion house Balenciaga SA is planning stores with Reliance Brands. Swiss luxury multi-brand watch and jewellery boutique TimeVallee and Dutch haircare salon services brand Keune, among others, are also set to debut in the country soon. This effect underscores a broader shift in consumer behavior towards valuing experiences and quality over mere accumulation, significantly impacting the luxury car market too and potentially shaping future trends in consumer preferences and brand strategies.
Reproduced with permission from Mansworldindia.com
