India’s luxury car market is experiencing a groundbreaking surge, with over six vehicles priced above ₹50 lakh sold every hour in 2024. This incredible growth reflects the nation’s increasing affluence and evolving preference for high-end automobiles. According to industry sources, this figure marks a sharp rise from just two luxury cars sold hourly five years ago, driven by a burgeoning wealthy population and shifting consumer choices.
Unprecedented growth and future prospects
The luxury car segment in India is poised for continued expansion. Automakers are set to launch more than 20 new models in 2025, catering to the growing demand for premium vehicles. For the first time, luxury car sales are expected to surpass 50,000 units in 2024, with projections indicating a rise to 53,000–54,000 units in 2025.
Balbir Singh Dhillon, Head of Audi India, anticipates an 8–10% growth in the segment in 2025, citing post-pandemic recovery as a significant driver. Similarly, Santosh Iyer, MD and CEO of Mercedes-Benz India highlights the positive business environment, stable incomes, and strong consumer sentiment as key factors boosting demand.
Market leaders driving the momentum
Mercedes-Benz India continues to lead the luxury car market, selling 20,000 units in 2024—a remarkable 13% year-on-year growth. BMW India also showed robust performance, with sales climbing by 5% to 10,556 units between January and September 2024.
Although Audi India faced a 16% decline in sales due to supply chain disruptions, the brand remains optimistic about 2025, with plans to introduce an ambitious new product lineup.
Untapped potential in India’s luxury car market
Despite the surge in sales, luxury cars account for just over 1% of India’s automobile market—a figure well below the global average. This indicates immense untapped potential. Knight Frank’s Wealth Report 2024 forecasts a 50% growth in India’s ultra-high-net-worth individuals (UHNWIs), from 13,263 in 2023 to 19,908 by 2028, positioning the country ahead of peers like China and Malaysia.
India’s luxury market outlook
With rising disposable incomes and an expanding billionaire base, India’s luxury car market is set for sustained growth. As more consumers prioritise premium vehicles, the country is well on its way to becoming a significant player in the global luxury automotive landscape.
