Share of luxury cars to the total passenger car market is likely to increase to four per cent from the current levels of two per cent by 2020.
The total number of passenger cars in the country is likely to touch around 8 million (80 lakh) units by 2020, said Boris Fitz, Director, Sales and Network Development of Mercedes-Benz India.
Passenger car sales stood at 1.89 million (around 19 lakh) units in 2012-13. Sale of new luxury cars stood at 29,000 units in 2012.
“At present, luxury cars account for just about 2 per cent of the total passenger car market which is far lower than that in China (5 per cent) and Hong Kong (15 per cent). The next 3-4 years will be decisive for India,” Fitz said at the launch of new A-Class in the city on Monday. Mercedes-Benz plans to invest Rs 250 crore on its manufacturing facility at Chakan in Pune to double its annual production capacity to 20,000 units by the end of this year.
The luxury car maker, which sold 7,138 units in 2012, expects a double-digit growth in sales in 2013.
While the growth in passenger car segment had been southwards, the growth in the luxury car segment has been just the opposite. During the January-March 2013 period, the company’s sales grew by about 5.3 per cent to nearly 2,900 units.