Luxury cars currently have a little over 1% market share in India—the lowest among major economies.As many as six cars priced over INR 50 lakh were sold every hour in India this calendar year, up from only two five years back, indicating a sharp rebound in demand at the upper end of the market and an expanding affluent class.
Sales are expected to accelerate further with luxury carmakers preparing to roll out more than two dozen new vehicles in 2025.
Several senior industry executives ET spoke to said while growth is expected to ease going ahead on a high base, luxury car sales are poised to surpass the 50,000 mark for the first time in 2025.
“We expect the industry to grow around 8-10% in 2025,” said Balbir Singh Dillion, Head, Audi India. “This is on the back of very strong post-pandemic growth in luxury car sales, reaching all-time high.”
Santosh Iyer, managing director and chief executive officer, Mercedes-Benz India, concurred, “With the current macros, we expect a steady 2025, primarily owing to favourable business climate, steady earnings and positive consumer sentiments—all of these resulting in increased consumption.”
While Mercedes-Benz will announce its 2024 sales performance in January, industry executives say the luxury car market leader would be closing the year with sales of nearly 20,000 cars. The company posted a 13% rise in sales to 14,379 units in the nine months till September.
“Mercedes-Benz India is confident of continuing the growth momentum in CY2025 and focus on consolidating our gains made in 2024, with new product introductions and market expansion,” said Iyer.
Rival BMW India’s sales grew by about 5% to a record 10,556 vehicles during the January to September period. Audi India, though, is likely to end the year with an estimated 16% drop in sales due to non-availability of certain models and parts, as per S&P Global Mobility’s sales forecast.
Audi India said it is geared up to revive sales next year. “We are prepared for 2025 with a product pipeline which has long been loved and desired by Indian consumer. Our focus on customer centricity will continue to drive our efforts to deliver exceptional experiences and set benchmarks for luxury mobility in India,” said Dhillon.
Luxury cars currently have a little over 1% market share in India—the lowest among major economies. The country however offers ample growth potential given it is home to one of the highest number of billionaires worldwide, industry experts said.
Between 2023 and 2028, India will witness the highest increase for any country in the number of ultra-high-net-worth individuals (UHNWIs), with a net worth of USD 30 million or more, as per Knight Frank’s flagship study, ‘The Wealth Report 2024’.
The number of ultra-rich Indians is expected to surge by 50% to 19,908 in 2028 from 13,263 in 2023. India will be followed by China (47%), Türkiye (42.9%), and Malaysia (35%), according to the report.
Luxury car sales
Year
|
Sales
|
|
|
2020 -
|
20,500
|
2021 -
|
28,600
|
2022 -
|
38,000
|
2023 -
|
48,000
|
2024 -
|
50,000
|
2025* -
|
53,000-54,000
|
*Estimates
Source: Industry
