Sales volume of luxury vehicles in India 2002-2023

In 2023, the sales volume of luxury cars in India increased to 42.7 thousand units, an all-time high, surpassing the pre-pandemic peak in 2018. The decline between 2019 and 2020 was partially due to the economic impact of the coronavirus pandemic and new emission norms. German brands such as Mercedes-Benz, Audi, and BMW were the top three players in this segment.

What drives India's demand for luxury cars?

The share of luxury vehicle sales in total passenger vehicle sales across India was less than one percent in 2021. However, by 2024, demand for luxury cars significantly increased. Several factors contributed to this, including changing consumer preferences, increased wealth, and improved infrastructure. As disposable incomes rose and the number of high-net-worth individuals increased, more consumers began to invest in luxury cars. This trend also reflected a changing mindset, as owning a luxury vehicle increasingly came to be seen as a symbol of social prestige.

German brands race ahead 

In 2024, Mercedes-Benz held the largest market share in the luxury car segment. The company launched its first 'Made in India' vehicle and introduced the country's first luxury electric car. It also had the highest sales volume among the luxury car brands, followed by BMW. Total luxury car sales in India exceeded 45 thousand units that year.