Lessons from India’s Luxury Car Boom

India’s strong and consistent economic growth has fueled an unprecedented rise in its wealthy population, making it a strategic growth engine for the global luxury industry, especially at a time when demand in more established markets is cooling. Nevertheless, while the country’s rising appetite for premiumization presents great opportunities, some structural challenges—such as limited suitable retail infrastructure, high import duties, and local taxes—are limiting scalability. Many foreign luxury brands in categories such as apparel, footwear, jewelry, and handbags are still struggling to scale in proportion with the rising demand. But there is one sector that has overcome these challenges to race ahead: luxury cars.