Luxury car sales in India have witnessed an unprecedented surge, with over six vehicles priced above ₹50 lakh sold every hour in 2024. This marks a dramatic rise from just two cars per hour five years ago, highlighting the growing affluence and evolving preferences of Indian consumers in the premium automobile segment.
Driven by strong demand and an expanding base of ultra-high-net-worth individuals, the luxury car market is poised for continued growth, with automakers gearing up to introduce over two dozen new models in 2025.
A Booming Segment
Luxury car sales in India have experienced steady growth over recent years, climbing from 20,500 units in 2020 to an estimated 50,000 units in 2024. This trend is expected to continue in 2025, with projected sales surpassing 53,000–54,000 units.
According to Balbir Singh Dhillon, Head of Audi India, the industry could see an 8–10% growth in 2025. “This growth reflects a strong post-pandemic recovery and robust consumer confidence,” said Dhillon.
Mercedes-Benz India’s MD and CEO, Santosh Iyer, attributed the segment’s success to a favorable business environment, steady earnings, and positive consumer sentiment.
Market Leaders: Mercedes-Benz And BMW
Mercedes-Benz continues to dominate the luxury car segment in India. The company is expected to conclude 2024 with nearly 20,000 units sold, representing a 13% increase from the previous year. During the January–September period, Mercedes-Benz sold 14,379 cars, maintaining its market leadership.
BMW India also posted record-breaking sales, with a 5% growth to 10,556 units in the first nine months of 2024. The company’s consistent performance reflects its strong foothold in the premium segment.
Audi India, however, faced challenges due to supply chain disruptions, leading to a 16% decline in sales. Despite this, Audi has ambitious plans for 2025, focusing on new launches and a renewed customer-centric approach to regain market momentum.
Low Market Share, High Growth Potential
Luxury cars account for just over 1% of India’s automobile market—the lowest among major global economies. However, experts believe this indicates immense growth potential, especially as India is home to one of the world’s highest numbers of billionaires.
According to Knight Frank’s Wealth Report 2024, the number of ultra-high-net-worth individuals (UHNWIs) in India is expected to grow by 50%, rising from 13,263 in 2023 to 19,908 by 2028. This projected growth outpaces other countries, including China and Turkey, making India a lucrative market for luxury automobile manufacturers.
Expanding Product Lineups
Automakers are capitalizing on this burgeoning market by expanding their product offerings. More than 24 new luxury models are set to debut in 2025, catering to the diverse preferences of India’s affluent consumers.
Mercedes-Benz India plans to sustain its growth with innovative product launches and market expansion initiatives. Audi India has also outlined its roadmap, promising a strong product pipeline to meet consumer demands. “We are ready for 2025 with a lineup that resonates with Indian preferences and sets benchmarks in luxury mobility,” said Dhillon.
Affluent Class Fuels Growth
India’s expanding affluent class is a significant driver behind the rise in luxury car sales. The country’s growing pool of billionaires and ultra-high-net-worth individuals is fueling demand for premium vehicles.
Industry experts suggest that as India’s wealth grows, so will the appetite for luxury cars, paving the way for a thriving high-end automobile market.
Luxury carmakers are optimistic about sustaining this upward trajectory, supported by strong consumer sentiment and an evolving market landscape. With more Indians aspiring to own high-end vehicles, the future of luxury car sales in India looks brighter than ever.
As luxury brands deepen their local presence and innovate to cater to Indian tastes, the future of luxury car sales in India promises not only growth but also a transformative impact on the automobile sector