High taxes, including 40% GST, keep India's luxury car market stuck at ~50,000 units a year, says Volvo India MD

Our read

With the 40% GST unchanged, India's luxury car market will more likely than not stay near 50,000 units a year, and Volvo Car India will rely on EV launches rather than segment growth.

For operators

Luxury car volumes have stayed flat at about 50,000 units a year while passenger vehicles grew from about 3.3 million (FY19) to over 4.7 million, so luxury retailers and dealers should plan on stagnant demand and lean on launches like Volvo's EX90 at ₹1.26 crore ex-showroom rather than expecting market growth.

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Luxury sales above the ~50,000 units a year reported, in the next full-year industry data, would mean the plateau is breaking and EV launches are widening the buyer pool.