The conviction that India will catch up with China in the coming years continues to drive strategies of the various car manufacturers, Lalit Choudary tells WealthBriefingAsia exclusively.

Chinese appetite for
luxury cars appears almost insatiable; a report last month put China ahead of the US for the first time as the world's largest
buyer of Rolls-Royce cars in 2010. The Rolls-Royce Index is considered a
reliable gauge of a country's excess wealth, especially with the most basic
Rolls model costing at least $245,000. But India’s luxury car
market is catching up, argues Lalit Choudary, managing director of Infinity Cars Private, the dealer which brought Aston Martin to India last year. Last year he delivered close to 25 cars.

India is often cited
as the last big growth market for various product categories. The luxury
car market in India is no different. Various market participants have been
excited at the potential of the market drawing immediate parallels to the
Chinese market. India is a mere low single digit percentage of sales of China
for luxury cars; however, the conviction that India will catch up with China in
the coming years continues to drive strategies of the various car
manufacturers. 

The last few years
have witnessed the entry into India of almost all globally significant
automotive manufacturers. German brands are emerging in India, like JLR and Lexus. The
segment has recorded superior growth clocking upwards of 50 per cent year on
year driven by a slew of product launches and customer friendly product
innovations in finance, insurance and leasing. World class facilities have
been established in quick time to offer customers a buying and ownership
experience on par with the global benchmarks.    

The success of these
brands has prompted the luxury sports car manufactures to enter India
too. Last year has witnessed the entry of Aston Martin, Maserati and Ferrari alongside Lamborghini. These cars offer unique driving pleasure and are
being perceived as the next thing to own by those who can afford. 
Improving road conditions and acceptable fuel quality have helped make the
ownership of these cars more practical in India. With regards Aston Martin
particularly, the almost sedan-like driving comfort of the cars, high ground
clearance and four door variants such as Rapide have helped the brand settled
in well into our market. The cars have found a particular affinity in India given
the British legacy and association with the James Bond movies. 

With all the activity
the automotive market in India is not without its share of concerns. High
interest rates, increasing fuel prices, high import duties, high and often
times varying registration and other state level taxes, continue to plague the
industry. Various bodies have made representation to the Government
regarding several of these issues and one remains hopeful that with time they
will be mitigated. Any improvement along those lines will offer a strong fillip
to the industry and further buttress the Indian luxury consumption story. 

In
relation to Hong Kong, Hong Kong has always had a highly affluent consumer base
with a fine taste for luxury cars. Per-capita ownership of such cars is
probably among the highest in the world. In recent years, China has been quick
to acquire the same affinity for such cars and has displayed a keen willingness
to spend on the world’s finest brands in significant numbers. Despite overall
recent weakness, luxury car momentum continues unabated with strong growth
ahead. 

In contrast, India in its modern avatar is only now opening up to the
luxury market and the market is a small percentage of China's. While early
trends are encouraging it will take several years before luxury consumption
becomes widespread and acceptable as in China.