Posted by Luxury car sales & how much Dealers are prepared?
BMW, iPhone surge in India show something interesting happening in Indian market. While AI is shaping how businesses connect with customers, India’s luxury car market is humming—51,000 units sold in 2024, up 6% from 2023, and BMW is at the forefront with 3,764 units in Q1 2025 alone. What is Dealers’ AI edge in this market?
I happened to meet & talk to young CEOs of luxury car dealer about our AI platform. I am amazed at excitement with which these dealers have vision to capture the market shift, are all set to bring AI & tech. One CEO told me – “My dream is to bring AI to dealerships like US. I have seen them using it & India does it 5 years later. I want to do it now at par with US”
We recently onboarded a couple of Luxury car dealers for our AI platform. Their CEOs & team are both all excited.
Similarly at Pune’s EV Auto Expo in May 2025, OEMs shared bold plans to scale. India’s affluent class is soaring— 350,000 high-net-worth individuals (HNIs) in 2024, up from 326,000 in 2023, and 60 million affluent consumers, projected to hit 100 million by 2027.
Compare that to China’s 6 million HNIs or the US’s 7.5 million; India’s wealth growth is faster, fueling luxury demand [World Wealth Report].
Apple’s defiant stand against Trump shows iPhone dears Indian market close to hitting $8 billion in 2024, hint at this appetite for premium goods.
As demand surges, some BMW dealers are pulling ahead, engaging thousands of buyers while others falter. What sets them apart?
Certain Dealers’ AI Edge better than others
Luxury is about customer’s feelings & desires more than the need. So the customer engagement, being around the customer over very long time & know minute preferences of customers is necessary.
Old ways won’t suffice.
Dealers need to engage thousands— at the time customer wants, be ready at all the channels customer wishes to engage —by responding quickly, building trust after sales, and suggesting upgrades, like a BMW owner eyeing a premium X5. At the expo, OEMs emphasized scaling connections.
Some dealers are preparing to be more tech savvy, leverage AI. For after sales & used cars – there’s a need for even higher scale of customers to be engaged.
Know more about AI for Automotive & Dealers
- Handling routine questions (e.g., “What’s the 3 Series financing?”) efficiently, saving time for personal engagement.
- Using customer insights to focus on ready buyers, like young entrepreneurs, reducing effort.
- To be on toes to find what market is saying, what’s customer asking for
- Investing in digital channels, like Instagram, to reach affluent buyers affordably.
- Staying attentive to needs, offering relevant add-ons or services, like extended warranties.
Approaches using customer data thoughtfully, which I’ve come across, help dealers scale without heavy budgets. With luxury sales up 15% in 2023 and 37% of HNIs driving brands like BMW [Autocar India, The Hindu], those who connect smarter are tapping into India’s wealth surge.
Thriving in India’s Luxury Boom:
Dealers who prioritize engagement and responsiveness, adopt tech & AI can turn this demand into lasting customer ties, just like Apple’s iPhone success shows. Our Dealer & OEM partnerships for AI showcase how some dealers are using technology to stay ahead. Others might find inspiration in online resources, like those at vaayushop.com/blog, to keep pace. As India’s wealth climbs, staying connected at scale will define the leaders in this luxury car surge.
AI can do a lot more. Reach out if you are interested
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