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The Indian car market, which also tends to be at the forefront of the most populous country in the world, saw another decline in sales last year, with a cumulative drop of 12.4% compared with the same period last year. Under the influence of the global economic market, every car market seems to be affected, but in the past 2019, a number of car companies have suffered a sharp decline in the Indian market, including the luxury brand BBA.

The Indian market, which is supported by a large number of consumers, has not bucked the trend like domestic luxury brands in the past year. According to the Indian Automotive website, the Indian auto market sold a total of 2962052 vehicles in 2019, down 12.4% from the same period last year. Among them, Mercedes-Benz, BMW, Audi, Jaguar Land Rover and Volvo five luxury brands accumulated sales of 40340 vehicles.

Among the announced Mercedes-Benz, BMW and Audi brands, all three car companies are on a double-digit decline in the Indian market, with Audi being the most serious. The best seller in 2019 was the Mercedes-Benz brand, which sold 13786 vehicles for the whole year, down 11.28% from the previous year's 15538, while the BMW brand sold 9641 vehicles, down 13.8% from the previous year's 11105. Audi sold only 4594 vehicles for the whole year, down 28.92 from the previous year's 6463, and only Mercedes-Benz performed slightly better than the market.

As luxury brands in the Indian market are imported models, they will be affected by tax rates and import duties. In response, Balbir Singh Dhillon, head of Audi India, said: "luxury car sales are affected by high consumption tax rates, import taxes and registration taxes, and unlike many other markets around the world, India accounts for only 1.2 per cent of the entire car market."

It is understood that the Indian market levies a goods and services tax rate of 28% on luxury cars, while electric models charge a goods and services tax rate of 12%. For this reason, many multinational car companies think that the various tax rates charged in India will affect the share of sales. leading to a gradual decline in the Indian car market.

As a very promising emerging market in the world, as well as a very large single market, India has been actively invested by many large international automobile manufacturers in recent years, but under the influence of the economic recession in 2019, the first decline in the Indian market has also made many car companies choose to withdraw, including General Motors in the United States.

At the same time, however, some Chinese automakers have chosen to operate in this emerging market, and in January, Great Wall said it would buy GM's plant in Taligon, India.

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