India’s Luxury Car Market Accelerates Electric Vehicle Adoption
India’s luxury vehicle market is experiencing a significant shift towards electric vehicles (EVs). According to Vahan data, luxury e-vehicle sales increased from 1,223 units during January-May 2024 to 2,027 units in the same period this year, representing a substantial growth in EV adoption. For the calendar year 2024, e-luxe vehicle sales reached approximately 51,000 units, up from just over 48,000 units in 2023.
The penetration of EVs in the luxury car market has entered double-digit territory for the first time, rising from 7% in January-May 2024 to 11% in the same period this year. This growth is driven by major luxury car manufacturers who are focusing on the higher end of their luxury lineups. Santosh Iyer, MD & CEO of Mercedes Benz India, noted that “more luxury customers are embracing electric vehicles.” In the calendar year 2025 year-to-date, while the total luxury vehicle market grew by 5%, the electric luxury market surged by 66%, with Mercedes Benz India witnessing a 73% growth.
Mercedes Benz is growing in the top end of the EV space with models like the EQS sedan, EQS SUV, and Maybach EQS 680 SUV leading the growth. BMW Group India, another major player in the luxury EV market, has sold over 3,000 EVs till date and maintains a significant presence with 58% of the luxury EV market share. Vikram Pawah, president and CEO of BMW Group India, stated that “BMW is the leader in electric luxury mobility since the last 3 years.” The company sold 1,020 units of its BMW and Mini EVs between January and May 2025, representing a 110% increase over the same period last year.
Luxury car manufacturers are not only focusing on selling EVs but also on “enabling a strong EV ecosystem for our consumers” by understanding usage patterns, offering robust charging networks, and implementing various charging initiatives. For instance, Audi India provides customers access to over 6,500 charge points through a charging app, enhancing convenience for EV owners.
Although priced between ₹1 crore to ₹3 crore, making them premium products, luxury car makers see the EV segment as a significant growth opportunity. Currently, EVs constitute a smaller portion of their total sales – 2% for Audi India and 7% for Mercedes Benz India in 2024. However, with the growing demand for luxury EVs, manufacturers are optimistic about the future prospects of this segment.
