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As the demand remains robust for high-end models, the leading luxury carmakers expect 2022 to turn out to be the best year in terms of sales, as compared to the volumes of 2019, according to news agency PTI. The companies also expect this festive season to be best in terms of dispatches, despite the chip shortage woes continue.

The agency reported that the domestic luxury car volumes stood at around 40,000 units in 2019, the best ever sales recorded by the industry in a year so far.

In an interaction with PTI, Lexus India President Naveen Soni said that the luxury car making industry has become more resilient and even there has been a steady revival after the 'not-so severe' third wave of Covid-19 pandemic.

He said that the luxury car market is on V-shaped recovery path with strong demand from the luxury consumers mainly attributed to change in consumer behavior, more successful start-ups, younger affluent consumers and local production.

The current year has started well for both, the industry and Lexus India, Soni said, adding that they are hoping for increase in demand in comparison with pre-pandemic level of 2019.

"This time, we are looking at three-fold demand for Lexus cars as compared to previous years and since the branch launch in 2017. Being hybrid, Lexus cars are high on technology with higher dependence on semiconductor availability, however, the company is trying its best to meet customers' demands," he added.

Meanwhile, Mercedes-Benz India also expects strong sales momentum from the second quarter to continue in the coming festive period, said company's CEO and MD Martin Schwenk, adding that the challenges continue to be on the supply side due to semiconductor shortage during the festive period.

He further notes that the company's product launches remain unchanged, which will bring in the much awaited EQS luxury sedan this festive period.

In addition to these similar sentiments, Audi India also said that the demand has grown steadily in the last few months and expects further demand in the period ahead, as per PTI reports.

Audi India head Balbir Singh Dhillon said, "The company is working relentlessly to get additional allocations for India, to fulfil this growing demand. Also, one cannot disregard the fact that waiting period for company cars have gone up owing to demand and supply mismatch."

The company expects good growth on the back of sustained demand models like A4, A6, Q5, Q5, Q7 and Q8, besides this, we also expect the newly-launched A8 L and new Q3 to witness strong demand during this year," he added.

Presently, the luxury car volumes account for less than 2% of the overall passenger vehicle sales annually and the sector has been more or less at the same level for the past decade. The luxury cars in India attract the top GST slab of 28% with an additional cess of 20% on sedans and 22% on SUVs, taking the total tax revenue to up to 50%.

 

(With PTI inputs)

 

 

 

 

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