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Inflation is no bump for luxury carmakers
Published on Tue, May 06, 2008 at 00:38 in 
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SMOOTH DRIVE: Audi plans to sell 1,000 cars by the end of 2008.
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Pune: Record-breaking inflation and a worrisome US economy may be bothering a lot of companies in India but luxury carmakers are upbeat.
As many as 3,300 luxury cars were sold in the country in 2006; in 2007 sales improved by 38 per cent and companies expect a hundred per cent growth in 2008.
The economy may be slowing down but it is customers like Utkarsh Munot who are giving luxury carmakers. Munot, executive director at ZF Steering Gear, waited long to drive a BMW in his home, Pune.
BMW entered the Indian markets in 2006 but Munot waited till the company opened a showroom in Pune. "If I had bought a BMW before, there would be no service centre. I would have to send my car to Mumbai to get rid of a scratch. It would have be a big expense," says Munkot.
To meet the demands of customers like Munot, luxury car brands are hitting the Indian market with aggressive dealership. Audi, a new player in the Indian market, opened four showrooms in the last four months in Hyderabad, Gurgaon, Pune and Chandigarh.
"Our market is not just in Pune but also in cities like Nagpur, Kolhapur and Nashik. With developing cities around Pune and Pune expanding day by day, there is a lot potential," says Kapil Pashankar, Managing Director of Audi.
Luxury carmakers believe that sales are just to going to get better. Mercedes sold 2,491 units in 2007 and aims to sell 3,000 more in 2008.
BMW sold 1,387 units in 2007 and plans to sell 2000 units more in 2008. Audi sold 350 units in 2007 and aims to sell 1,000 more units by the end of 2008.
As of now, these three brands, together, have already accomplished 33% per cent of the total target, in the first financial quarter.
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