Luxury Car market

1. Aug,20XX
Luxury Car Market

2. - 1 -
Table of Contents
1
2
Overview - India’s Demographics
Why luxury car segment is growing
4
Revenue generation
6
3 Analysis
5
3

3. - 2 -Source Economist, Google,:
Demographics Macroeconomic trends – (1/4)
Indian economy has grown at a very fast pace in the last couple of decades resulting in enhanced
individual spending and savings
Present
GDP per
capita
income :
$310
6X increase in
GDP per capita
income since 1991
1.2% growth at
constant price
7.5% growth at
constant price
Gross national
savings 22.5%
Gross national
Savings increased
by 8% since 1991
20011991
4.1% growth
at constant
price
Gross national
savings 25%
Per capita
expenditure $233
Per capita
expenditure $305
3X increase in per
capita expenditure
since 1991
10X increase in
FDI inflow from
2000 to 2007
Going
forward?
GDP growth expected to continue in the long term
Increase in per capita income will increase the
discretionary spending; improved domestic demand
Rich:1%
Upper middle class 2%
Middle class:76%
Low income group: 21%
Rich: 3%
Upper middle class 4%
Middle class:84%
Low income group: 9%
Rich:0%
Upper middle class 1%
Middle class:54%
Low income group: 46%
Shift of population
from low income to
middle class group
Per capita
disposable
income
INR
11.5K
INR
20K
Per capita
disposable
income
INR
45K
Per capita
disposable
income

4. - 3 -
Demographics (2/4)
16.8
16
4.78
3.1
8.4
23
22
8.2
6.3
11.55
0
5
10
15
20
25
Delhi Mumbai Chennai Pune Bangalore
2011 2016
Indian Cities population in (Mn)
56
29
13
1
43
34
20
3
0
20
40
60
80
100
120
Deprived Aspirers Middle Rich
2016
2011
India is about young people
With, the growing Indian population and Increase in the number of Middle class which has regularly being shifted from
aspirers to middle or either rich has led to increase in sales of Luxury segment
33
39
56 57
Rural urban
2011
2016
Large Middle class and growing affluent class Middle and affluent class households
50
44
34
32
30
23
8 9
18
15
21
31
0
10
20
30
40
50
60
India Indonesia Europe China USA Japan
Aged 24 and under
Aged 60+
Deprived = <112000, Aspirers = 112000-250000,Middle = 250000-
1250000,Rich = >1250000
Because of higher density of Middle and Affluent class in Urban
India, most of the MNCs focus more on the Urban Centers

5. - 4 -
Source
:Data.gov.uk,Economist
Consumption basket – (3/4)
The boom in Indian economy has resulted in increased per capita income which in turn has
resulted in changing consumer habits. Spending on food has decreased while that on leisure &
entertainment has increased over the years
Others
Per capita
income (USD)
24,530 16,770 1,180
Food
Housing*
Clothing
Transport
Health
Entertainment
15% 12%
60%
6%
6%
6%
31%
18%
7%
17%
15%
5%
1%
5%
10%
201120011991
21% 37% 27%
14%
10%
51%
5%
6%
8%
32%
18%
10%
20%
14%
4%
5%
1%
6%5%
12%
1%
13% 9%
50%
3%
6%
7%
35%
24%
10%18%
14%
5%
8%
2%
6%
5%
11%
5%
37,460 28,960 2,150
19% 39% 19%
50,600 37,050 4,840
18% 35% 17%
Going
forward?
Food to continue as a major spending segment considering the
expected income levels
Spending on transportation and housing expected to accelerate in the
future
2018
48,261 40,074 5997
17% 12% 18%
11% 15%
30%4%
6%
5%
17%
30%
14%16%
20% 21%27%
2% 6%
8% 15% 6%

6. - 5 -
The Emergence of super rich… (4/4)
Source : Statista
158
242
0
50
100
150
200
250
300
2012 2017
Millionaires in India in (000’s) Presence of Luxury brands
“Luxury market is ~ USD 15 Bn Today and spreading beyond the Metro into the traditionally conservative cities like surat,
Chennai ,Kolkata
9371
7430
1805
5511
6812
13502
11500 11192
BMW Mercedes JLR Audi
2011
2016
Luxury Car Market sales is Growing Market Share of luxury cars in India
25000 33000
200000
2011 2016 2021

7. - 6 -
2. Why luxury segment is Growing in India
Source :
In India, the average investment in 2010 was $4.2m, it should reach more than $50m by 2018.
Rise in the No of Startups Demography of founders
With the rise in the no of start-ups and entrepreneurs there is a surge of demand, which could rise immediately and could
increase the demand for luxury cars segment in India and would be expected to grow by 10-20% till 2018-20 in terms
of luxury car market is concerned

8. - 7 -
3. Analysis and the reason of the evolution luxury car segment
Source :
The Indian luxury landscape is experiencing an evolution which is redefining the consumer profile & how luxury players will
need to operate in this domain during the year 2016
Rising Middle class
Trends in luxury in India
New Technology
Other factors
Hybrid electric
vehicles
Electric Vehicles
Price points
Dealer network
Better Finance schemes
Localization of parts
Rising young entrepreneurs
Increase in No of
Startups
Younger people have
large disposable
income
1. Step outside The metro cities
2. Increase in HNI’s
3. Pre-owned Luxury
Attractive and
Luxurious features

9. - 8 -
4. Revenue generation
With the Rise in Luxury car sales, Consulting companies like EY,PWC and other Big 4 are churning a lot of Money as
they made them aware about the potential sales in the market. Hence win- win situation for all
Phase I
• Identification of potential
customers in India like
HNI’s ,Middle class and
rich
• Trends, population of
varied cities ,buying
trends, market share
Phase II
• Building strategy to reach
customer like increase in
dealer ship, marketing
strategy, setting up in tier
2,3 cities, finance
schemes
• Change in technology
,assessment of
competitors ,analysis of
Industry experts
Phase III
• Building strategy to
reduce cost via
competitive
benchmarking, launching
new products, applying
best practices
• Which will at the enhance
the Market share via
improved margins
,remaining in a very cost
effective manner
Generally consulting firms charges as per the phase ,once the phase has been finalised and the client gets satisfied ,them
remit the % sum of money as shown above ,as per the industry standards several Big 3 and 4 firms charge at around $
350,000to 5 00,000 per month
25% 40% 35%
Cost % per
phase