European car brands may missed Auto Expo 2023, but bet big on Indian car market

Major European automobile manufacturers like Mercedes-Benz, Audi, BMW, MINI, Volkswagen, Skoda, Jaguar and Land Rover may have given the ongoing Auto Expo 2023 a miss, but they have been increasingly focusing on the Indian market and betting big on it for their global sales growth. As the last few years' track record shows, premium and luxury car brands like Volkswagen, Skoda, Mercedes-Benz, BMW and Audi are strengthening their India business in terms of product portfolio and manufacturing operations.

By: HT Auto Desk
| Updated on: 16 Jan 2023, 16:33 PM
Follow us on:
Follow us on:
Mercedes-Benz is increasingly focusing on bringing new products to India and assembling several models locally. (Bloomberg)
Mercedes-Benz is increasingly focusing on bringing new products to India and assembling several models locally. (Bloomberg)
Mercedes-Benz is increasingly focusing on bringing new products to India and assembling several models locally. (Bloomberg)
Mercedes-Benz is increasingly focusing on bringing new products to India and assembling several models locally.

This is a key reason why India has steadily climbed up the global automotive market charts in the last two years to become the third largest in the world by sales volume in 2022, overtaking Japan. Interestingly, even two years ago, India was the world's fifth-largest passenger car market. But, despite the sales numbers increasing fast and the Indian market adding revenue to the global automakers' coffers, it still lags behind global peers in terms of the value of vehicles sold here. This is one of the key reasons the major European automakers have given the Auto Expo a miss.

Also Read : Deliveries of the most-awesome Mercedes start. Check out the very first AMG One

This comes at a time when they are witnessing choppy waters in other global markets like Europe, the UK, the US and China. The demands for premium and luxury cars in these markets are being impacted continuously due to recessionary fears, resurging Covid-19 cases and dampened consumer sentiment. However, India’s relatively resilient growth story is giving these carmakers hope and pushing them to prioritize allocations to the country.

Similar Cars

Find more Cars
Mercedes-benz Eqc (HT Auto photo)
Electric | Automatic
₹1.07 Cr**Ex-showroom price
Add to compare
Check latest offers
Audi Q7 (HT Auto photo)
2967 cc | Petrol | Automatic
₹80 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Bmw X7 (HT Auto photo)
2993 cc | Mild Hybrid(Electric + Petrol) | Mild Hybrid (Electric + Diesel) | Automatic
₹1.22 - 1.25 Cr**Ex-showroom price
Add to compare
Check latest offers
Skoda Superb (HT Auto photo)
1984 cc | Petrol | Automatic (Dual Clutch) | 15.1 kmpl
₹31.99 - 35.85 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Porsche 718 (HT Auto photo)
1988 cc | Petrol | Automatic (Dual Clutch) | 13.51 kmpl
₹85.46 Lakhs - 1.64 Cr* Ex-showroom price
Add to compare
Check latest offers
Mercedes-benz Cls (HT Auto photo)
DISCONTINUED
1950 cc | Diesel | Automatic (Torque Converter) | 16.13 kmpl
₹86.39 Lakhs**Last recorded price
Add to compare
View Details

Czech car brand under the Volkswagen Group's umbrella has more than doubled its sales in India to nearly 54,000 units in 2022. As part of its India 2.0 strategy, the automaker has not only focused on bringing new models with a revised design and a wide range of advanced features to the country but also emphasised on expanding the retail network. Also, it focused on bringing down the cost of ownership as well. As part of these efforts, India is currently Skoda's largest market outside Europe and the third largest globally.

In the luxury car segment as well, India has been steadily grabbing a larger business share of the brands like Mercedes-Benz, Audi and BMW. However, their overall sales volumes in India are really low to make it one of the top 10 markets for these brands. But, beyond the absolute sales numbers, several other factors push these automakers to prioritize the Indian market over and above many other global markets.

While the luxury car segment in India accounts for just one per cent of the domestic passenger vehicle market, the upbeat consumer sentiment and a growing number of the affluent customer base willing to purchase luxury cars is a silver lining for the luxury car OEMs in India. The increasing number of young and affluent buyers in India makes the country an outperformer among the global emerging markets.

For example, BMW Group increased its sales by 37 per cent in India in 2022 on a year-on-year basis. On the other hand, BMW's global sales were down 4.5 per cent last year compared to 2021, owing to the crisis in China, which is a major market for the brand. The story is similar for Mercedes-Benz and Audi as well.

This has been prompting European carmakers to increase allocations to India. They have been bringing models to India which were not so favoured for the country even a few years ago. This shows how the weight of India in total international sales for the automakers is growing.

For instance, BMW recently launched the i7 in India, which is its flagship electric sedan challenging the Mercedes-Benz EQS. Its archrival Mercedes-Benz makes the EQS locally in India, which is the only market outside Europe where this EV is assembled. This underscores India's strategic relevance as a destination for the localized products from Merceds-Benz.

First Published Date: 16 Jan 2023, 16:30 PM IST
Recommended for you
View all
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
56% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing
Rs. 263 Rs. 604
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
20% OFF
Involve Your Senses One Musk Organic Car Perfume Bar, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g Car Accessories interior car perfumes and fresheners
Rs. 319 Rs. 399
65% OFF
ELV Car Mount Adjustable Car Phone Holder Universal Long Arm, Windshield for Smartphones - Black
Rs. 348 Rs. 999
13% OFF
Jopasu Car Duster
Rs. 755 Rs. 869
9% OFF
ShineXPro Microfiber Car Cleaning Cloth - OG Soft 500 GSM Extra Large (35x75 CM) Microfiber Cloth for Car and Bike - Suede Edging for Scratchless Drying and Detailing (Pack of 2)
Rs. 499 Rs. 549
11% OFF
Pidilite WD-40, Multipurpose Car care Spray, 420ml Rust Remover, Lubricant, Stain Remover, Powerful Chimney Cleaner, Degreaser, and Bike Chain Cleaner & Chain Lube (341g)
Rs. 335 Rs. 375
68% OFF
ORJILO Super Soft Microfiber Car Duster Exterior with Extendable Handle, Car Brush Duster for Car Cleaning Dusting - Grey
Rs. 319 Rs. 999
65% OFF
Portronics AUTO 12 in-Car Bluetooth Receiver for Handsfree Calling, Music System, Supports All Smartphones (Black)
Rs. 525 Rs. 1,499
61% OFF
HSR Car Accessories in 10PCS/1Set Car Wiper Detergent Effervescent Tablets Washer Auto Windshield Cleaner Glass Wash Cleaning Tablets
Rs. 197 Rs. 499

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city