Luxury Car Sales Booming, Mercedes-Benz Continues To Reign

Premium car sales are flying in India with 3 distinct winners—Mercedes-Benz, BMW, Land Rover, and Lexus—each basking in robust demand and new model offerings. Audi and Volvo, however, appear to be falling behind, unable to match the leaders. What's behind this success? Let's have a closer look!

Mercedes-Benz 

Mercedes-Benz India remains on top of the premium car market, retaining its market leadership in FY25. Much of its success comes from high-end models over Rs 1.5 crore, which speaks volumes about the brand's popularity among high-spending buyers. Traditional nameplates such as S-Class, G-Class, and Maybach continue to be firm favorites among celebrities, corporate barons, and politicians. Meanwhile, the ever-dependable E-Class LWB led the sales chart as the top-selling model for the year.

Electric vehicles, too, contributed significantly to Mercedes' momentum, with the likes of EQS, EQS SUV, and the G-Class EV spearheading the EV portfolio. These propelled a significant 7% growth in the electric vehicle business of the brand. So hungry was demand for the EQS SUV that it's locally assembled today, and astonishingly, outperformed budget-friendlier EVs such as the EQA, EQB, and EQE SUV, a certain sign of India's growing appetite for premium electric cars. 

Overall, the brand posted a 4% year-on-year increase, with sales rising from 18,123 units during FY24 to 18,928 units during FY25, again solidifying Mercedes-Benz's leadership in India's luxury car segment.

BMW 

Mercedes-Benz's perennial arch-rival, BMW, keeps pursuing the runner-up position with a consistent 4% year-over-year increase in FY25. The company registered 15,240 units in FY24, which increased to 15,995 units in FY25, showing an emerging consumer fondness for the Bavarian brand. Just like Mercedes, BMW's long-wheelbase sedans—the 3 Series Gran Limousine and 5 Series, especially—continued to be the bestsellers, and SUV fans thronged to models such as the X1 and X4 in search of their sporty nature and pragmatism.

In the electric space, BMW played the correct note with the iX1, which caught strong attention for its aggressive sub-₹50 lakh price point—virtually unprecedented for an Indian luxury EV. Flagship EVs such as the i7 and iX SUV provided additional momentum, securing 10% of the brand's overall volume. The traditional Mini Cooper range, spearheaded by the energetic Cooper S hatchback, meanwhile, took up 4% of BMW Group's total demand—demonstrating that driver's car dynamics remain popular in the premium compact market.

JLR Group 

Jaguar Land Rover (JLR) has been one of India's largest success stories in the luxury car segment during FY25, posting a phenomenal 40% year-on-year growth. The sales went from 4,436 units in FY24 to a whopping 6,183 units in FY25, charting a clear uptrend for the British marque under the umbrella of Tata. Leading the way was the rugged Land Rover Defender, which alone accounted for close to 90% of overall sales, solidifying its cult status among SUV fans.

JLR's policy of doubling down on SUVs and local assembly is yielding dividends. Both the Range Rover and Range Rover Sport, both locally manufactured in India, recorded a sharp increase in demand, up by 72% and 42% respectively. This transition towards localisation not only enhanced affordability but also complemented the “Make in India” campaign beautifully. A salute to Tata Motors for spearheading this revolution and making JLR a serious player in India's luxury auto industry.

Lexus 

Toyota’s very own luxury arm is also seeing growing demand in the Indian market. The Lexus NX SUV has been the star child for the brand and its best-selling model. Lexus refrained from providing exact sales figures but said that they saw 19% year-on-year demand for FY25. It’s a luxury MPV; the LM has also seen strong demand, and many celebs like Anil Kapoor, Hritik Roshan, and Ranbir Kapoor own one in their car collection. Even RX has been a good seller for the brand, and March 2025 constituted the brand's highest monthly sales. 

Audi 

Despite strong sponsorship game and brand visibility, Audi has been on the losing end for FY25. It sold only 5995 units in FY25 as opposed to 7049 units in FY24, seeing a drop of almost 15%. VW’s dieselgate controversy, leading to the phasing out of diesel cars in India, is one of the key reasons behind this decline. 

Volvo 

Another Losing brand for FY 25 is the Swedish giant, Volvo. Despite enjoying a near monopoly in the commercial bus category, its year-on-year sales have declined for FY25. It sold just 1750 cars as opposed to 2150 cars in FY24, sparking concerns for the brand. It translates to an 18.60% drop in sales. 

Limited number of cars in its decreasing ICE portfolio and the company’s future of going all electric are some of the reasons for its drop in sales. However, the future is electric, and the company’s upcoming EX30 car can be a game changer, where the XC40 Recharge has been received well in India.