Luxury Cars in India: Insights on Ownership, Cost & More

In this blog post based on the discussion with an influencer, we delve into the realm of luxury cars in India. Sometimes, it's not just about the money when it comes to owning, maintaining, and even possessing supercars.

Key Takeaways

1. Smart investing in the right models can make luxury cars a depreciating asset.
2. India's luxury car market is growing, with Mercedes as the number one luxury car brand in the country.
3. India's supercar segment is smaller, with Lamborghini leading the pack.

The Reality of Owning a Luxury Car in India

• To buy a Ferrari in India, one needs to own three Ferraris already. Ferrari invites its customers to buy its cars, not the other way around.
• On average, the yearly maintenance amount for a Lamborghini can be around seven lakhs.
• Many owners are not completely aware of the tech and specs of the car they buy; they purchase purely to show off their wealth.
• However, a significant section of people are actual car enthusiasts who understand what they're buying.

India's Luxury Car Market

• In 2023, around 50,000 luxury cars are expected to be sold in India.
• Mercedes leads the pack as the number one luxury car brand in India.
• While India is a smaller market right now as compared to China, it's growing. Mercedes sells about 16,000 cars in India while in China, the numbers soar to 700,000.

Brands and Prices: The Tale of Audi and Lamborghini

• An Audi RSQ8 and Lamborghini Urus, built on the same platform, differ drastically in price because of the brand value.
• A Lamborghini Urus costs twice as much in India as it does in Dubai due to customs and taxes.
• The price of some luxury cars appreciates over time. For example, the price of Lamborghini Urus increased by a crore within a year.

Average Costs & Maintenance

• Avg yearly maintenance for a Lamborghini Urus: around 7 lakhs.
• Avg first service cost for a Lamborghini Urus: around 1.75 lakhs.
• At high speeds, fuel efficiency drops drastically, averaging to around 2-3km/liter.
• A depreciating asset like a car can be written off as an expense in businesses, saving you the tax money.

The Value of Branding in Luxury Cars

• Brand value and the associated lifestyle it represents contributes to the higher price tags on luxury cars.
• Ownership of luxury cars is often more about status and being a part of an exclusive club than the actual features and power of the car.

Please note, luxury cars should not just be driven fast, they are meant for enthusiast driving. Therefore, safety and respecting speed limits should always come first.