Young Buyers Drive Luxury EV Sales Surge in India
Young, aspiring Indians are increasingly drawn to premium electric vehicles, driving a 61% sales surge in the luxury EV segment during the March quarter. This growth contrasts with the struggles of mainstream EV makers facing sluggish demand. BMW and Volvo are seeing first-time luxury car buyers, even from Tier-II cities, attracted by EVs, signaling a shift in the automotive market.
In the March quarter, around 1,100 EVs were sold in the luxury segment, a significant increase from the previous year. This compares to a more modest 26% growth in electric car sales in the mass market, which reached 31,400 units. German luxury brand BMW, which launched its sixth EV model in India earlier this year, reported that half of the customers for its long wheelbase E-X1 model were first-time luxury car owners. The demand is coming not just from metros but also from Tier-II cities like Jaipur.
“It is not only the metros. We are seeing strong demand for EVs, even from Tier-II cities like Jaipur,” said Vikram Pawah, president of BMW Group India. BMW leads the luxury EV segment with a 60% market share. At Volvo, first-time luxury car buyers comprise 30-40% of its EV sales in India. The average age of a BMW X1 LWB EV customer is 39 years, compared to 42 for the ICE version of the X1, indicating that younger buyers are driving the demand for luxury EVs.
Industry experts attribute this trend to an influx of startups, young entrepreneurs, and economic growth. “An influx of startups, young entrepreneurs, and a boost in the economy is making this possible,” said Balbir Singh Dhillon, Head of Audi India. The demographic shift is also accompanied by a psychographic change, with EV buyers being more digitized and valuing sustainability.
While mainstream EV makers struggle, luxury EV brands like BMW, Volvo, and Audi are witnessing growing demand from smaller cities in addition to metros. This outperformance in the luxury EV segment is a notable exception in India’s overall EV market.
