Steffen Winkelmann, CEO and chairman of famous luxury car company Lamborghini, has said that high taxation in India will slow down the growth of the luxury car market.
Lamborghini, a famous Italian luxury car manufacturer, sells luxury cars in India. The company’s luxury car prices start from Rs.3.16 crores. It has sold an unprecedented 69 luxury cars in 2021, surpassing its previous record. Prior to this, it sold 52 cars in 2019, which was its highest ever.
Currently, luxury cars in India are subject to 28 percent GST and an additional cess ranging from 1 to 22 percent depending on the vehicle model. As a completely built unit, imported cars are subject to customs duty ranging from 60 percent to 100 percent depending on engine size and cost, insurance and freight charges of less or more than $40,000.
Speaking via video, Lamborghini President Stefan Winkelmann said,
“India is a market for us. It is on the growth path like most markets around the world. In particular, if you take the Indian market, it is clear that there is a high level of taxation in the Indian market like other markets. This slows down the pace of growth.
Something we need to understand is what is happening in India. As always, we are only satisfied with performance. Don’t run with a number target. We want to maintain the same momentum in the future as well.
Commenting on the impact of the global recession, ‘Despite India being the largest market in terms of population, Lamborghini sells less than 100 cars a year. So even though the economy in India is sluggish, it is not really a big change. Let’s wait and see what happens. But as of now, we don’t see any negative impact on our brand
Global Lamborghini sales in the January-September period grew 8 percent year-on-year to 7,430 cars. We are working with peace of mind as we have orders in the first quarter of 2024. To meet the challenges of the future, we are going to take the first step in the eco-friendly hybrid car market from 2023.
This is what he said.
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