Luxury Brands in India Must Reinforce a Premium Image During Sales Experience

Mohit Arora

Mohit Arora

The luxury vehicle market in India has grown in recent years, with premium sales reaching 26,000 units in 2013. This number is expected to triple to 84,000 units by 2020, according to our strategic partner LMC Automotive. In addition, an increase in the number of luxury models available in India, coupled with attractive financial options that enhance affordability, has helped the luxury market to grow.

Success, however, brings with it additional challenges for premium brands. Sales growth adds pressure for luxury brands to differentiate themselves from the mass market brands. According to findings in our 2013 India Sales Satisfaction Index (SSI) Study, overall satisfaction with the sales experience in the luxury segment averages 873 points on a 1,000-point scale. Although the luxury segment average is 31 points higher than the massmarket segment average (842), this index score is not a major differentiator for these brands, based on study results.

The price of luxury vehicles is much higher than the price of mass market vehicles. We see that customers expect luxury brands to provide a truly differentiated experience to enhance the value of ownership of these vehicles. The current network of dealers does not provide the level of differentiation expected to reinforce the premium image of luxury brands among these more demanding customers. Continue reading ›