China has developed rapidly over the past two decades, and as a result, foreign luxury carmakers have sold well in China. There was a time when Chinese automakers lagged behind luxury car companies like BMW, Porsche, Audi, and Mercedes-Benz. But things are changing now.

Luxury car sales decline in China

The last two quarters of luxury car sales data in China show that sales of companies like BMW, Porsche, Audi and Mercedes-Benz have declined. In contrast, the demand for luxury cars in India has increased rapidly. This situation raises the question whether this is a game of luxury car sales, or whether the Chinese are getting disillusioned with luxury cars, or whether India is moving towards becoming a strong economy.

Reasons for decline in luxury car sales in China

China's economy grew rapidly in the last 20 years, but now it has stagnated. Due to the rise in inflation, Chinese people are now preferring to buy cheap electric or hybrid cars instead of luxury cars.

According to a report by the Wall Street Journal, sales of luxury cars like Porsche and Ferrari have declined in China in the first quarter. Porsche sales have declined by 24% and Ferrari sales by 25%. Similarly, sales of BMW and Mercedes-Benz have also declined.

Increasing demand for electric vehicles (EV) in China

Despite the impact of inflation, sales of electric vehicles (EVs) in China have exceeded sales of luxury cars. According to government data, 1.03 million electric vehicles were sold in China in the first quarter, up 14.7% from a year earlier. At the same time, sales of plug-in hybrid cars stood at 1.71 million, up 5.7% from the first quarter of last year.

Increasing demand for luxury cars in India

The demand for luxury cars has increased rapidly in India in the last few years. Especially the demand for luxury cars up to Rs 1 crore has increased.

Increase in income

India is currently the fifth largest economy in the world. Industry and trade are growing rapidly here, which has also increased the income of the people. Due to higher income, people are now showing interest in buying luxury cars.

Comfort and luxury feel

In luxury cars, special attention is paid to the comfort of the users. These cars also have safety features, which give people an experience of luxury and comfort. This is the reason why the demand for luxury cars is increasing rapidly in India.

Brand Value

People in India now buy luxury cars for their brand value. Luxury cars are considered a status symbol. People also like to buy luxury cars to show their success and identity.

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