With the exception of Audi, all other luxury car brands have seen a decline in sales for September 2020
Luxury cars are an aspiration many live by, and it is this innate need for the best that money can buy that helps the industry. The Federation of Automobile Dealers Associations (FADA) reports a slowdown in luxury car retail sales for September 2020. Accumulated luxury car retail sales have reported a year-on-year and monthly decline.
FADA luxury car retail sales decline in September 2020
Year-on-year sales fell 26.81 percent to 1,590 units from 2,039 units. Mercedes-Benz India sales fell to 565 units from 772 units with a decrease in sales of 26.81 percent. BMW sales fell to 467 units from 600 units, down 22.17 percent. Audi India has remained green with 279 units, 22.91 percent more than the 227 units.
JLR sales fell by less than half to 135 units from 273 units down 50.55 percent. Volvo reported a marginal decrease of 120 units, compared to 130 units with a decrease of 7.69 percent. Porsche’s sales are quite cautious despite a 33.33 percent decline, as sales fell from 30 to 20 units.
Lamborghini and Rolls Royce remained firm at 2 units, and a single unit was sold, similar to September 2019. Ferrari sold 1 unit, down from 2. Bentley’s sales are nil, down from 4 units. Of course, wholesale numbers will be better reflected across the spectrum.
There is no doubt that the numbers from the retailers are revealing and the The luxury car market has been shattered.. While last month’s comparative sales were better, this can be attributed to pent-up demand sales and shipping, as the country was in the grip of the Covid-19-related pandemic lockdown at the beginning of fiscal year 21.
The holiday season could boost sales
Now that business is on the mend, mass market auto and two-wheelers units are moving green in month-on-month and year-on-year comparisons. As the industry has already shown signs of slowing down in 2019, low base sales have helped most mass market manufacturers report profits in September 2020. But the usual rules do not apply to the luxury car market, a place that is restrictive on its price points.
Long before the pandemic-related repercussions hit businesses, the luxury car space was already red at the end of 2019 with decisions that would depend in part on the implementation of the BS6 emission standards as of April 1, 2020. While the transition was being approached gradually, there was no indication of how different the world would be on April 1 2020.
While it’s back in business, luxury automakers could expect some relief from the current holiday season, a period traditionally recognized as a period of high sales. Whether that attracts buyers or not, and how slowly it will develop through Q4 2020. While Q3 sales have been better than Q2 2020, it is nowhere near recovery.
Launch of luxury cars in October 2020
Meanwhile, manufacturers have continued to launch new vehicles and October has been especially busy. Following the launch of the Mercedes-Benz EQC today, the launch of the BMW 2 Series Gran Coupe and Land Rover Defender is scheduled for October 15, and the Audi Q2 for the following day.
