Luxury cars see boom in industries across India despite the pandemic blues
Covid said as the 19-pandemic hit every industry, luxury car makers were seeing an improvement in sales in India.The ongoing Covid-19 pandemic hit every industry with declining sales and businesses suffering huge losses. However, luxury car makers say they are seeing green shoots of improvement in sales in India despite the epidemic.
Luxury Car maker “Lamborghini” achieves 100% sales growth
Lamborghini’s Italian luxury car maker, says its sales are up 100 percent compared to last year. The company sold 26 units in India during the last financial year (FY2021), a growth of 100 per cent over the 13 units sold in FY2020.
Urus has been the driving force behind sales for the luxury brand. The company has also added new models to the Huracan range.
Lamborghini India head Sharad Agarwal said, “We are definitely surpassing all other players in the super-luxury segment. We are surpassing them.”
Between October 2020 and March 2021, Lamborghini India customer orders grew by 20 per cent year-on-year.
“Demand buoyancy is high. We are monitoring the new order bank in the coming months. This could have an impact on business and volumes next year,” Agarwal said.
Other Luxury Car makers following up the trend
Not only Lamborghini, but also other luxury car manufacturers like Mercedes have seen nationwide sales increase amid the uncertainty of the epidemic.
For example, the German luxury carmaker has stated its hopes for new launches and this is evident from the fact that it will add 15 new products to its sustainability in 2021. Eight new products have already been launched in January-June 2021. Period.
New launches include – A-Class Limousine, GLA SUV, E-Class Sedan, GLS Maybach SUV, New S-Class Limousine, AMG A35 Sedan, AMG GLA 35 SUV and GLC SUV.
Customers lined up to buy these cars. The GLS Maybach SUV for 2020 has already been sold and 50 units have already been booked during pre-launch.
Speaking to India Today, Martin Schwenk, MD & CEO, Mercedes-Benz India, said, “There is good demand for most of our portfolio, especially the top-end ones from the luxury segment. Both GLS Maybach and S-Class orders are very satisfying. -We are also seeing strong demand for class sedans and GLA SUVs. “
“With the resumption of economic activity after the easing of restrictions, we have seen a positive momentum in the market and a return to customer sentiment,” he added.
Consumer sentiment rebounded as the states launched in stages, with Mercedes registering 50 percent growth in January-June 2021 sales. The company is confident that the positive momentum will continue in the coming quarters and that it expects good business in the second half of the year.
Audi set to launch E-vehicles this year
While some auto companies are recovering, others are preparing to launch new vehicles into the market. Audi is set to launch the much-anticipated electric SUV in the first half of 2021. The company has been working to introduce the e-tron electric SUV in the Indian market for some time now.
Auto Retailers Witness 71% Drop Year-On-Year
While luxury cars are selling like hotcakes, sales in the passenger vehicle segment are down.
According to the latest data released by the Federation of Automobile Dealers Associations (FADA), 5,35,855 vehicles were sold in the country in May 2021, 71 percent lower than in May 2019.
FADA President Vinkesh Gulati said, ‘This time rural markets have been severely affected. May saw a lockdown in most states in May and that month saw auto retail ‘bloodbath’ as sales fell 55 per cent on a monthly basis.
According to the FADA, private vehicle sales are down 59 percent.
Best Investment Options to opt in 2021
Mutual Funds
Investors are often confused when it comes to mutual funds. Of course, they are risky but high returns cannot be ignored as they are tied to the market. If you want to invest in markets, without the necessary experience and skills, you can choose to invest in mutual funds and get higher returns than many other investment options. These are market-related investments in which money is invested in various financial instruments such as debt, equity, stocks, money market funds, etc., which yield returns based on the fund market performance.
There are three broad categories of mutual funds – equity funds, debt funds and hybrid funds, each of which invests in different asset classes.
What is Equity Mutual Funds?
Equity funds provide high returns by investing 65% of their assets in equities with market-linked securities and investing in stocks of companies with various market capitalizations. As the returns offered are higher, the risk is also higher in equity funds.
These funds are classified according to market capitalization (large cap, small cap, mid cap and multi cap), tax saving mutual funds (ELSS) and sectoral or thematic funds.
Who should invest in equity funds:
- High risk investors
- People looking for long-term investment options
- Investors looking for tax-saving investments can invest in Equity Linked Savings Schemes (ELSS).
What are Debt Mutual Funds?
Debt mutual funds include instruments such as government securities, corporate bonds, trade securities, treasury bills and other money market instruments that are invested under fixed-interest securities. These funds provide a stable ROI so are ideal for low risk appetite investors.
Who should invest in debt funds:
- Risk-free investors
- Individuals with 3 to 4 years investment horizon
- Investors are looking for higher liquid investments
What are Hybrid Mutual Funds?
Hybrid funds are mutual funds that invest in more than one type of investment securities, such as stocks and bonds. This makes these funds ideal for beginners or coreholders for diversification in the portfolio. The asset allocation of hybrid funds may be fixed or change over time.
Who should invest in hybrid funds:
- Conservative investors are looking for low-risk investment avenues
- Early investors who want to expose significant equity to their entire portfolio without taking too much risk
- Investors with a long-term investment horizon
- Public Provident Fund
The Public Provident Fund (PPF) is a government-backed investment scheme that enables its clients to enjoy long-term risk-free investments. The interest rate on the PPF account is revised and paid by the government every quarter. The current interest rate is 7.9%. The maturity period is 15 years under PPF. However, the money in your PPF account can only be partially withdrawn after a period of 6 years. However, a loan can be taken on a PPF account balance.
Since the scheme is under the control of the government, the interest that comes with the original is completely safe. Also, PPF falls under the EEE category (Exemption-Exemption-Exemption), in which the principal amount, earned interest and maturity amount are exempt from tax. Donations to the PPF account (up to Rs 1.5 lakh per annum) are eligible for exemption under Section 80C of the Income Tax Act.
Who should invest in Public Provident Fund:
- Investments made in favor of a PPF account are locked for a period of 15 years, which is favorable for investors looking for long-term investment options.
- Investors who want to get a tax deduction
Bank Fixed Deposits
Following the traditional methods of investment, fixed deposits are one of the most popular options available. These deposits are made with banks with the guarantee of providing a steady return over a specified period. According to the bank guidelines, the FD term chosen by the investor is 7 days to 10 years. However, individuals can also opt from the available tax-saving fixed deposits for a fixed term of 5 to 10 years.
When investing in fixed deposits, the investor has the option of choosing a cumulative deposit or a non-cumulative deposit. In the cumulative option, the interest is reinvested in the original amount and paid at maturity, while in the non-cumulative option the interest is paid to the investor as per the underwriting.
Who should invest in fixed deposits:
- Investors are looking for guaranteed returns
- Conservative investors with low risk appetite
- Investors who want investment options with a comfortable tenure
National Pension System
Are you planning your investments for a good retirement fund, but giving higher returns than other schemes? Here is a good selection. The National Pension Scheme (NPS) is a government-backed scheme that allows investors to invest in various market-linked instruments such as equities and debt; The final pension amount depends on the return on these investments. The National Pension Scheme has a 75% to 50% equity exposure, which stabilizes the risk-return ratio for investors.
NPS is regulated by the Pension Fund Regulatory and Development Authority of India (PFRDA), which is accessible to all persons aged 18 to 60 years; However, the maximum age can be increased to 70. Individuals can withdraw a partial amount (up to 25%) from NPS after 3 years of account opening.
Who should invest in NPS:
- Under NPS Section 80CCD (1B) Rs. It also offers an additional tax benefit of up to Rs 50,000. Investors who want the tax saving option can choose to invest in NPS
Investors with a long-term financial need
Recurring Deposits
Recurring Deposit (RD) is a fixed deposit offered by Indian banks in which customers are allowed to make regular deposits and earn good returns. This tool provides investment flexibility by allowing investors to choose their own term. RD tenure usually ranges from 1 year to 10 years. Individuals can open an RD account with their respective banks and continue to deposit a fixed amount each month. Interest earned is also paid along with the amount invested at maturity.
Who should invest in recurring deposits:
- Investors looking to make regular monthly deposits and earn interest income
- Investors looking for an investment option with a liquidity factor
- Low income people can invest in RD, make small deposits every month and get good interest on maturity
Senior Citizens Saving Scheme (SCSS)
A 5 year savings plan is available here for Indian senior citizens. Under this scheme, persons above 60 years of age can make deposits up to 5 years from the date of opening the account and get good interest on the amount. The current interest rate for this scheme is 8.6%. The tenure of this investment tool can be extended up to 3 years.
SCSS offers the highest interest rate compared to other savings schemes available in India. You can open your accounts through Public / Private Sector Banks or Indian Post Offices. In addition, since investment made under this scheme is tax deductible under Section 80C of the Income Tax Act, 1961, it is also considered in the list of best tax saving schemes, Rs. 1.5 lakhs per annum.
Who should invest in SCSS:
- Senior citizens looking for investment options that offer regular income, tax benefits and higher security
- People who are willing to invest for long term wealth creation with government backed schemes
Gold ETF
Gold ETFs or Gold Exchange Traded Funds are tools that work as a mix of stocks and gold investments. These funds are traded on the National Stock Exchange (NSE) and can be bought and sold like any other company stock. Gold ETFs are passive instruments based on gold prices, making them completely transparent in terms of prices.
Although market-linked instruments are volatile in terms of risk, they also provide high returns. Therefore, choosing a financial instrument for investment purpose should be done only after getting complete information about the product and market.
Who should invest in Gold ETFs:
- Investors who are ready to invest in the gold market
- Conservative investors with low risk appetite
- People who want to invest in gold, people who do not want to spend on making, storage and extra charges can invest in Gold ETFs.
Real Estate
One of the fastest growing sectors in the country, the real estate sector has huge potential in sectors such as hospitality, commerce, housing, manufacturing and retail. Retail investment is undoubtedly the safest investment with the highest returns in India. The risk is very low, but the likelihood of property prices rising is very high. It should be noted, however, that it can be difficult to sell a property quickly in case of immediate monetary needs.
Real estate assets can be liquidated when the investor or property owner wants to do so. Investors have the opportunity to invest in commercial or residential properties or invest in real estate mutual funds to get higher returns. Investing in commercial areas such as offices or shops not only yields higher returns but also helps to diversify the assets in the investment.
Who should invest in real estate:
- Investors looking for value-added alternatives to inflation can invest in real estate
- Investors who are willing to earn regular rental income
- Individuals are looking to diversify their investment assets
Post-Office Monthly Income Scheme (POMIS)
The monthly savings scheme regulated by the Post Offices in India is one of the best schemes for monthly income. It is a government-sponsored savings scheme that allows investors to save a certain amount each month. The maturity period of the scheme is 5 years from the date of opening the account. Anyone residing in India (not NRI) is eligible to open a Post Office MIS Account with a minimum of Rs. 1,500.
Investors can open a POMIS account individually or collectively. However, since the Post Office Monthly Income Scheme does not provide any tax deduction on investment or maturity amount, investors looking for a scheme that offers a tax saving option may not opt ??for this device.
Who should invest in Pomis:
- Investors who want a steady monthly income are not willing to take any risk on their investments
- It is more suitable for retirees or senior citizens who have fallen in the No More-Pachek Zone.
- Investors are willing to invest in bulk to reach the goal of getting a normal return
- Investors with long-term financial goals
