Luxury has always had a distinct place in the Indian automotive market. For some, it is a symbol of success and heritage; for others, it is about unparalleled comfort, technology, and performance.
It’s intriguing that luxury cars in India while maintaining their exclusive niche, are becoming a growing segment of aspiration, demand, and desirability.
In 2024, India’s luxury car market witnessed remarkable growth, with sales passing the 50,000 mark for the first time in India—a 5-6% year-on-year increase. This expansion is not merely a reflection of economic progress but also an evolving consumer mindset.
Buyers today expect more than just a prestigious nameplate; they seek personalized experiences, cutting-edge technology, and vehicles that align with their lifestyle.
The segment, once concentrated in metro cities, is now seeing strong traction in Tier-2 and Tier-3 cities, where demand for premium automobiles is on the rise. At the same time, the industry is witnessing a shift toward electric luxury mobility, with brands investing heavily in high-performance EVs.
With global automakers increasing their commitment to the Indian market, improved financing options, and the rise of pre-owned luxury car sales, this sector is poised for further expansion.
The question is no longer whether luxury cars will grow in India but how fast and how significantly they will shape the future of the country’s premium automotive landscape.
Market Overview: A Changing Landscape for Luxury Cars in India
Traditionally, India’s luxury car market was centred around Delhi, Mumbai, Bangalore, and other metropolitan cities.
However, 2024 has seen a major shift in consumer demand, with high-end brands expanding into emerging economic hubs like Indore, Surat, Lucknow, and Coimbatore.
This expansion is a response to the growing number of high-net-worth individuals (HNWIs) and affluent business owners in these regions. With stronger infrastructure, improved road networks, and rising aspirations, luxury is no longer confined to select urban clusters—it is reaching every corner of the country.
Recognizing this opportunity, Mercedes-Benz, BMW, and Audi have been increasing their retail presence beyond metros.
Companies like Jaguar Land Rover and Volvo have also begun tapping into this demand, ensuring that buyers in these regions have access to world-class sales and service experiences.
India’s Luxury Car Market Leaders and Their Competitive Edge
The Indian luxury car market is dominated by a few key players, each bringing unique strengths and strategies to the table.
1. Mercedes-Benz
Leading the segment with a 38.8% (approx) market share in FY 2024 with 19,565 cars sold, Mercedes-Benz has solidified its position through a diverse portfolio and a focus on customer experience.
The brand’s E-Class sedan remains a favourite among Indian buyers, appreciated for its blend of performance, comfort, and advanced features. Additionally, Mercedes has been proactive in expanding its presence in smaller cities, recognizing the growing affluence beyond metropolitan areas.
2. BMW
With an outstanding sales number of 15,721 in the year 2024, BMW continues to hold a 32% (approx) market share, appealing to enthusiasts who prioritize driving dynamics. The 3 Series and X5 models have garnered significant attention, offering a balance of agility and luxury.
BMW’s emphasis on performance engineering and sporty aesthetics resonates with a younger demographic seeking both style and substance.
3. Audi
With a focus on technology and design, Audi has carved a niche in the Indian market selling a total of 5,816 cars in the year 2024. The Q5 SUV and A6 sedan are among its popular offerings, known for their Quattro all-wheel-drive systems and intuitive infotainment setups.
Audi’s commitment to innovation is evident in its push towards electrification, with models like the e-tron gaining traction among eco-conscious consumers.
4. Jaguar Land Rover (JLR)
Combining British heritage with modern luxury, Jaguar Land Rover has elevated its appeal in India through a robust local assembly strategy.
This initiative has been a resounding success—boosting sales by approx 23% in Apr 24 to Dec 2024 period, with 4,390 vehicles retailed—and ensuring that the locally assembled Range Rover series lives up to its reputation for unparalleled off-road capability and opulent interiors.
The success of local assembly has not only optimized production and delivery but also reinforced JLR’s commitment to offering tailored, high-quality luxury experiences to Indian buyers.
5. Volvo
Emphasizing safety and Scandinavian design, Volvo has attracted a segment of buyers who prioritize understated elegance and advanced safety features.
The XC90 SUV stands out for its spaciousness, minimalist interior, and a suite of driver assistance technologies.
Volvo’s commitment to sustainability is also evident in its move towards hybrid and electric powertrains.
6. Porsche
For the first time, Porsche has surpassed the 1,000-unit sales milestone in India, delivering 1,006 vehicles and achieving a 10% year-on-year growth. The Cayenne continues to be the brand’s flagship model, accounting for approximately 45% of total sales.
With its legacy of performance and exclusivity, Porsche is steadily carving out a niche in the Indian luxury market. In FY2024, the brand’s iconic 911 and versatile Cayenne models have resonated with affluent enthusiasts seeking both exhilarating performance and refined luxury.
Porsche has reported a notable uptick in demand, particularly in key metropolitan hubs, as its limited-production sports cars continue to capture the imagination of India’s elite.
The marque’s commitment to blending cutting-edge technology with timeless design further solidifies its position as a premium choice in the competitive luxury segment.
Each of these brands brings a distinct value proposition, contributing to a vibrant and competitive luxury car market in India.
What’s Fueling This Growth?
1. Evolving Ownership Models
Buyers today have multiple ways to own a luxury car, from leasing programs to luxury subscriptions and buy-back programs.
These flexible options allow consumers to upgrade their vehicles more frequently without long-term commitments.
2. Luxury Tourism & Experience-Driven Demand
The demand for chauffeur-driven luxury experiences has increased significantly.
Many high-end hotels, resorts, and premium rental services now offer luxury car rentals, making them more accessible to a wider audience.
3. Affluent Young Buyers
The Indian luxury car market is witnessing a transformative shift in its consumer base. No longer confined to established business magnates, a growing number of young, affluent individuals—including millennial entrepreneurs, tech professionals, and social media influencers—are entering the high-end automotive arena.
According to a recent Economic Times article, the average age of luxury car buyers in India has dropped by nearly a decade, now standing at around 40 years.
These emerging buyers value both the status and the unique experiences that luxury cars offer, fueling a new era of demand and innovation in the segment.
4. New Model Launches Driving Market Excitement
Innovation in the model lineup has also played a significant role in fueling growth. In 2024, all leading brands launched various new models- facelifts or complete gen change, BMW 5 Series and Mercedes-Benz E-Class being the most notable ones.
The trend is expected to cntinue in 2025 to generate interest in the market. In 2025, Mercedes-Benz India is set to unveil 8 new models by year’s end—introducing eagerly awaited variants like the AMG GLE 53 Coupe, G 580, Maybach EQS 680 Night Series SUV, CLA concept, AMG SL 55 Roadster, AMG S 63 E Performance and E 450 LWB AMG versions.
The AMG E 53 Plug-in Hybrid, along with the AMG GT R, could also be launched here.
Meanwhile, BMW India is ramping up its product offensive with plans to roll out 19 new models this year in total; notably, 13 of these are luxury car models (excluding six additional two-wheeler launches under BMW Motorrad.
These strategic introductions are not only expanding each brand’s portfolio but also intensifying consumer interest and contributing significantly to the sector’s robust growth.
The Evolution of the Used Luxury Car Market in India
The pre-owned luxury car segment in India has undergone a significant transformation, evolving from a nascent market to a thriving industry.
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Affordability and Value Proposition
A key driver of this growth is the value proposition offered by pre-owned luxury vehicles. Luxury cars typically experience rapid depreciation in their initial years, making them more accessible to a broader audience when purchased.
For instance, a four-year-old luxury sedan can be acquired at nearly half its original price, providing buyers with an opportunity to experience premium features without the hefty price tag.
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Certified Pre-Owned Programs
To instill confidence among buyers, many manufacturers have introduced Certified Pre-Owned (CPO) programs. These programs ensure that vehicles undergo rigorous inspections and are refurbished to meet specific standards.
Brands like Mercedes-Benz, BMW, and Audi offer such programs, providing warranties and services and adding a layer of assurance and transparency to the market.
The Surge of Luxury Electric Vehicles (EVs) in India
In 2024, India’s automotive sector saw a decisive pivot toward sustainable mobility, with luxury electric vehicles taking centre stage. The luxury electric vehicle (EV) market in India witnessed a steady growth of 6.7% in 2024, with BMW, Mercedes-Benz India, Volvo Cars India, Audi, and Porsche collectively selling 2,809 EVs, up from 2,633 units in 2023, according to FADA. This upward trend reflects the growing adoption of luxury EVs in the country.
Robust sales performance and a growing EV portfolio from top-tier brands underscore this trend, reflecting shifting consumer preferences and supportive government policies.
1. Mercedes‑Benz EQS 580

Mercedes‑Benz is leading the premium EV segment with its EQS 580. This flagship model features an ARAI‑certified range of up to 857 km and a dual‑motor powertrain delivering approximately 516 bhp.
The inclusion of advanced features such as the expansive MBUX Hyperscreen not only elevates the driving experience but also reinforces customer confidence in the brand.
In the first half of 2024, Mercedes‑Benz India reported that its electric models accounted for around 5% of its total sales, reflecting a steady uptake of its EV offerings in a traditionally combustion‑engine–dominated market.
(Sources: Times of India, Mercedes‑Benz India)
2. BMW i7

BMW’s i7 is making a strong statement in the luxury EV space. Boasting an estimated range of around 560 km and a power output of approximately 536 hp in select variants, the i7 offers a compelling blend of performance and refinement.
Its standout feature—the unique 31.3‑inch 8K Theatre Screen for rear passengers—sets it apart in delivering an immersive in‑cabin experience.
According to recent reports, BMW’s diverse electric lineup is contributing to a record achievement, with the company reportedly commanding a 48% share of the luxury EV market in India.
(Source: BMW India Official Website; TOI Auto)
3. Audi e‑tron GT

Audi’s e‑tron GT offers a sporty yet luxurious electric driving experience. With a claimed range of around 500 km and a boost mode that delivers approximately 522 hp, along with a 0–100 km/h acceleration time of about 4.1 seconds, the e‑tron GT caters to enthusiasts who demand both speed and style.
Audi’s focus on expanding its charging network and competitive pricing further enhances its appeal in the high‑end segment.
(Source: Audi India Official Website)
4. Porsche Taycan Turbo S

Porsche continues to push the boundaries of electric performance with the Taycan Turbo S. Delivering a formidable 750 hp and achieving 0–100 km/h in just 2.8 seconds, the Taycan Turbo S exemplifies high‑performance electric mobility.
Its engineering excellence and strong brand loyalty have solidified its status among performance enthusiasts in the luxury EV market.
(Source: Porsche Newsroom)
Bolstering this shift, government initiatives such as the FAME II scheme are accelerating EV adoption by enhancing charging infrastructure and providing financial incentives.
These measures help offset higher upfront costs and encourage a broader embrace of sustainable mobility among consumers.
Together, these verified models and market trends highlight the industry’s commitment to innovation, sustainability, and luxury.
As premium brands like Mercedes‑Benz, BMW, Audi, and Porsche continue to expand their electric offerings, Indian consumers are increasingly embracing high‑performance electric mobility as a hallmark of modern luxury.
The Road Ahead for India’s Luxury Car Market
India’s luxury car market is undergoing a dynamic transformation, with rising sales, technological advancements, and a more diverse buyer base shaping its future.
As we look ahead to 2030, luxury car sales are expected to double, with electric mobility, flexible ownership models, and emerging global brands playing a crucial role.
The market is not just growing; it is evolving. For some, luxury remains a timeless statement of prestige and status, while for others, it is an immersive experience of technology and craftsmanship.
Either way, one fact remains clear—India’s luxury automotive segment is accelerating into a future of limitless potential.