India's Luxury Car Market Set to Break Records in 2025

India’s luxury car market is poised for a milestone year in 2025, with sales projected to cross the 50,000-unit mark for the first time. This represents a sharp rebound in demand at the upper end of the automobile market, driven by strong macroeconomic conditions, a favorable business climate, and the rise of India’s affluent class.

Luxury Cars on a Growth Trajectory

The numbers tell the story: in 2023, six luxury cars priced above ?50 lakh were sold every hour—triple the rate of five years ago. Luxury car sales grew across segments, with leading brands preparing to launch over two dozen new models in 2025. The market is expected to grow at 8–10% next year, solidifying the upward trend seen post-pandemic.

Market Leaders Gear Up for Expansion

Facts and Figures:

Mercedes-Benz India is likely to close 2024 with approximately 20,000 units sold, up from 14,379 in the first nine months—a 13% growth.

BMW India achieved a record 10,556 units sold during the January-September 2024 period, with a growth rate of 5%.

Audi India is projected to experience a 16% drop in sales in 2024 due to supply chain issues but is planning an aggressive revival in 2025.

Luxury carmakers are focused on product launches and enhanced customer experiences.

Mercedes-Benz aims to consolidate its market leadership with new products and expanded outreach, while Audi plans to introduce a refreshed lineup to regain momentum.

India’s Billionaire Boom Fuels Demand

Luxury cars occupy a mere 1% of India’s total automobile market, making it the smallest luxury market among major economies.

However, the country’s burgeoning affluent population offers immense growth potential.

By 2028, India is expected to witness a 50% rise in ultra-high-net-worth individuals (UHNWIs) with net assets exceeding $30 million, increasing from 13,263 in 2023 to 19,908, according to Knight Frank’s Wealth Report 2024.

This exponential rise will position India as a global hotspot for luxury consumption, outpacing markets like China and Türkiye.

A Promising Road Ahead

With steady consumer sentiment, robust earnings, and an influx of new billionaires, luxury carmakers are set to ride the growth wave in 2025. India’s evolving elite class, paired with an increasing appetite for premium experiences, is driving the country’s transformation into a key player in the global luxury automobile market.