Affluent Indians Are Buying More Luxury Cars Than Ever

Even Lexus has a robust 19 percent increase year on year while Audi also saw a 17 percent increase in Q4 sales

Mercedes-Benz claims that demand for its Rs 1.5 cr plus cars have gone up indicating more high-end luxury car ownership

Source : Somnath Chatterjee

While mass market manufacturers had tepid growth, luxury carmakers grew their sales in a bigger way indicating that more and more are entering luxury car ownership in India. Easier finance schemes and growing affluence have clearly made Indian buyers more open to splurging on a luxury car. The current market leader continues to be Mercedes-Benz which sold 18,928 cars during FY2025 and registered 4 percent growth while also its highest sales ever. The E-Class in LWB form is their best seller indicating that sedans are still popular in the luxury segment. Interestingly, Mercedes-Benz claims that demand for its Rs 1.5 cr plus cars have gone up indicating more high-end luxury car ownership.

BMW continues to be a strong seller too with 3914 cars being sold including the Mini brand in the last quarter. Here also their new 5 Series LWB is in demand along with the 3 Series plus the new iX1 LWB.

The other big growth story was for Land Rover which sold a record 40 percent more cars at 6183 units in FY2025 with the Defender sales growing immensely as it's best selling car. Even the much higher priced Range Rover has been highly popular.

Even Lexus has a robust 19 percent increase year on year while Audi also saw a 17 percent increase in Q4 sales.