Luxury cars segment sees a spurt in demand after second-wave

Luxury cars segment sees a spurt in demand after second-wave
Image: Pexel

As India begins to recover from the second wave of Covid-19, a spurt in demand for luxury cars has taken manufacturers by surprise.

Mercedes-Benz India witnessed a quicker recovery after the second wave as compared with the one witnessed in 2020. It remains the largest luxury carmaker in the country.

Other big car brands are also witnessing a similar trend. There are orders piling up even as deliveries take longer than usual owing to a global shortage of semiconductors.

For example, some of its high-end products such as the S-class, GLS and AMG series are almost sold out for the entire year. The company can only deliver the fresh orders by December or January next year.

Audi which is owned by Volkswagen has also been reporting sequential growth in sales and bookings. It now plans to achieve the pre-second Covid-19 wave level of vehicle sales by the end of the current quarter.

But this spurt in demand comes at a time when production schedules of automakers are impacted by the shortage of semiconductors and shipping containers.

Therefore, there will be delays in deliveries and some customers might also postpone their purchase plans.

Moreover, most luxury vehicle makers expect substantial growth during the festive season. That too, if the covid-19 third wave does not return to disrupt businesses again.

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