Lamborghini, Ferrari, Maserati, and Aston Martin have all recently announced that they will open new showrooms in two of India’s wealthiest and most populated cities. Unfortunately, at least for the rich people that reside there, the cost of luxury is much higher in India. Federal taxes on imported cars are more than 100 percent of the car’s retail price. Despite some sticker shock that could nauseate some wealthy Americans, India’s growing wealth equals a great opportunity for these luxury marques.
Lamborghini has held a stake in India since 2006, when Exclusive Motors started importing cars into the country, specifically into the city of Delhi. The dealership in Delhi will now compete against a new dealership in Mumbai from AutoHangar, which owns the principle Mercedes-Benz dealer in the same city. The two dealerships will contend for the 8–10 Aventadors that Lamborghini has reserved for the country. The new Lambo flagship will fetch approximately 40,000,000 Indian rupees, or a face-slapping $900,000.
Unlike Lamborghini, this is Aston Martin’s first push into the country’s luxury marketplace. Aston Martin held a ceremony just days ago to celebrate plans for two new dealerships to be run by Infinity Group. The entire Aston Martin range except the Cygnet will be up for grabs through dealers in Mumbai and Delhi. Like the cars from Lamborghini, prices may shock some Americans. For example, the Aston Martin Vantage will fetch 13,500,000 Indian rupees, or approximately $305,000; the new four-door Rapide’s price will equate to nearly $500,000; and the rare One-77 will cost 200,000,000 Indian rupees, or approximately $4,520,000.
Like its competitors, Ferrari hopes to be selling news cars out of Delhi and Mumbai in the very near future. Unfortunately, its range will cost just as much: a California will cost 22,270,000 Indian rupees, or approximately $500,000; a 458 Italia will run 25,660,000 Indian rupees, or approximately $580,000, and the 599 GTB will require 33,710,000 Indian rupees, or nearly $760,000. The cars will be offered through the Shreyans group, which will also be working with Ferrari’s sister brand, Maserati, to bring the GranTurismo, Quattroporte, and GranCabrio to India this year.
India, like China, experienced massive GDP growth in 2008 and 2009 when other parts of the world went into decline. As a result, the number of high-net-wealth individuals—individuals with investable assets of $1 million or more, excluding primary residence, collectibles, consumables, and consumer durables—grew by nearly 51 percent.
[via Wall Street Journal, AutoCar India, Indian Cars Bikes, and World Wealth Report 2010]
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