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.