Corporate usage salvages premium car sales

The growing appetite of corporate India to offer premium and luxury cars to its employees has resulted in significant sales of BMW, Mercedes, and Honda Accords to name a few. Premium cars are the ones which are defined with a length of 4,701 – 5,000 mm and come with a price tag which ranges between Rs 15- 30 lakh as compared to luxury cars that are 5001 mm and above in length and come as high as Rs 70-80 lakhs and Rs 1 crore. The demand for such cars for top executives is also fuelling the business of car leasing companies. Global players like Carzonrent, the licensee for Hertz in India and Leaseplan say that they are seeing an increasing proportion of demand for top-end models. According to Leaseplan over 200 cars leased this year to business houses belong to the premium segment and is expected to grow by 30 per cent over the last year.

Reports indicate that BMW India has sold 20-25 per cent of its cars to companies. During April-August, premium cars sales comprising models like BMW 5 and 6 series, Mercedes Benz E-class range of cars, Honda Accord and a Toyota Camry, recorded a 38 per cent growth at 3,978 units. Luxury cars including BMW 7 series and Mercedes S Class also rose 36 per cent at 344 units. While the sales of premium and luxury cars have grown the fastest compared to the mass and the mid-size sedan segment, its base is also much smaller. This results in the premium segment showing a higher increase than the compact car segment.

Source:wheelsunplugged.com

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