[TSIched'Out]

So the cat is out of the bag (or was already for the last few years). According to the data compiled by JATO Dynamics, a global market research firm, the Weighted Average Retail Price (WARP) of luxury cars in India has risen to five-year high. Various reasons sighted are depreciation of Indian Rupee, increase in freight and other costs among others. Some interesting highlights are:

1. WARP of luxury models across Mercedes, BMW, Audi, Volvo, Jaguar, Land Rover, Mini has jumped by 38% from Rs 58 Lakhs in 2018 to Rs 80 Lakhs in 2023

2. Mercedes Benz is the biggest beneficiary among the luxury car makers. Its market share is highest at 22% of the total sales of the top-end vehicles in 2022 as compared to just 12% in 2018

3. Land Rover saw sharpest increase in WARP per vehicle, up from Rs 85 Lakhs in 2018 to Rs 1.36 Crore in 2023. Overall volumes though have decreased on y-o-y basis (1523 units in 2022 vs 1954 units in 2021)

4. Audi is the only luxury car maker which saw decrease in WARP on y-o-y basis (Rs 63 Lakhs in 2023 vs Rs 65 Lakhs in 2022)

5. Total sales are still lower than 2018 levels in which 40340 units were sold as compared to 35,588 units in 2022. However, the trend is on upward slope considering 30% plus growth over 2021 (total sales of 27,020)

Note: Data for 2023 pertains to first four months of calendar year. For more details, please visit https://economictimes.indiatimes.com...7.cms?from=mdr

[Iyencar]

Essentially they want to sell less and make more per car. The big reason they’re getting away with this is that almost all these cars are company registered (probably in a more tax friendly neighbouring state) and can be written off a few years down the line. Also for those who want the badge nothing else will do. Even if a mass market manufacturer comes with more features and better engines it doesn’t matter. It was never about getting more bang for buck. It’s about the salaam the watchman gives, the parking the valet finds or the quality coffee you’re served by a waiter in the showroom. That’s why Toyota has Lexus, Honda has Acura and Hyundai has Genesis.

[d3mon]

What a stupid title from ET. Highest prices in 5 years? These are the highest prices since the big bang!