Auto companies embrace premium retail formats to tap into India’s luxury market

As Indians’ appetite for luxury products and experiences continues to rise, automobile companies are launching exclusive new retail formats to cater to this demand, reported TOI. This shift comes even as the broader car market remains cautious and sluggish, despite a surge in demand during the festive season.The push for premiumisation is being led by both mass-market and luxury car brands. Companies like Maruti and Tata Motors, as well as mid-range players like Hyundai and JSW MG Motor, are ramping up their focus on premium offerings. Even luxury brands such as Mercedes-Benz have taken this a step further, creating a curated experience for their high-end AMG line of supercars, noted TOI.

Two-wheeler makers are also tapping into this trend. Hero MotoCorp has launched a special ‘Premia’ range for its powerful bikes, including models developed in partnership with Harley-Davidson. Royal Enfield, on the other hand, is repositioning its showrooms as “lifestyle destinations,” offering a range of premium accessories and merchandise, including high-quality riding gear and apparel.

Toyota has introduced dedicated ‘Guest Experience Centres’ (GECs) for its luxury Lexus brand, with locations in cities like Delhi, Bengaluru, and Mumbai. Similarly, Hyundai is preparing to launch a luxury experience for its soon-to-debut Genesis brand.

The question arises: Why do luxury car brands require such sophisticated retail spaces? According to Santosh Iyer, MD & CEO of Mercedes-Benz India, the goal is to offer “immersive brand experiences” through highly trained staff who can provide personalised consultations and tailored experiences, TOI reported.

Maruti, a pioneer in this space, has long operated Nexa outlets for its premium vehicles. Now, other brands, including JSW MG Motors with its ‘MG Select’ format, are following suit with dedicated spaces for their ‘accessible luxury’ cars.