Luxury Car Brands in India Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The luxury car market in India is experiencing a surge in demand due to the introduction of diverse models and customer-friendly financing plans, particularly for high-end SUVs. Major manufacturers like Audi, BMW, and Mercedes are introducing new upscale car models, while the market also sees a growing preference for electric cars. The plush car market is further strengthened by new entrants and government investments. The market is segmented into vehicle type, drive type, and price range.

India Luxury Car Market Size

India Luxury Car Market Summary
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Study Period 2018 - 2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR 6.40 %
Market Concentration High

Major Players

India Luxury Car Market Major Players

*Disclaimer: Major Players sorted in no particular order


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India Luxury Car Market Analysis

The Indian luxury car market studied was valued at USD 1.06 billion in 2021. It is expected to reach a value of over USD 1.54 billion by 2027, registering a CAGR of more than 6.4% during the forecast period 2022-2027.

With the spread of COVID-19, the sales of luxury cars were affected due to lower footfalls in the showrooms. Various automobile manufacturers were forced to temporarily shut their production as the supply chain was disrupted by the country-wide lockdown imposed by the government, which restrained the market growth.

Over the long term, as luxury car manufacturers are launching multiple models with various price ranges and user-friendly financing schemes, the demand for luxury cars is expected to rise in the country. Moreover, the demand for luxury SUVs has been growing rapidly in the country and is expected to continue during the forecast period, as they offer extra space and comfort. Major luxury car manufacturers like Audi, BMW, and Mercedes are planning to launch new luxury models in the country at a competitive price.

Besides these factors, the growing popularity of electric cars supported by active launches and future strategies of key players in the market are expected to further support demand in the market during the forecast period. The market is also supported by new entrants into this electric luxury space in India. For example, Jaguar ventured into the Indian EV space with its first all-electric car, I-PACE. Audi made its EV debut in India with the launch of the Audi e-tron and e-tron Sportback. Both the cars are available in the 55 Quattro variant, while the standard e-tron gets a lower-spec 50 Quattro trim too.

India Luxury Car Market Trends

This section covers the major market trends shaping the India Luxury Car Market according to our research experts:

Luxury SUVs are Witnessing Rapid Growth in the Country

Shifting consumer preference from luxury sedans and luxury hatchbacks to luxury SUVs across the country is likely to witness major growth in the market. To meet the growing demand, international companies like BMW, Mercedes Benz, Volvo, and Audi, are launching new models every year. For Instance,

  • In June 2021, Mercedes-Benz launched Mercedes-Maybach GLS 600 became the first SUV ever to hold the Maybach brand name.
  • In June 2021, Range Rover launched the Range Rover Sport SVR, which is the high-performance iteration of Range Rover Sport. The SUV gets features such as heated front and rear seats, driver condition monitor aid, 360-degree parking aid, and many other features.

However, the sales of luxury cars were affected by the COVID-19 pandemic in 2019 - 2020. Automobile manufacturers across the country were forced to temporarily stop their production, as the supply chain was widely disturbed, and customers were forced to stay indoors due to the nationwide lockdown imposed by the government. However, to prevent economic collapse, various state governments have started to lift the restriction allowing various manufacturers to resume the production of vehicles.

  • Volvo had the biggest growth among the luxury car manufacturers. The company's new line-up of SUVs is more successful. In December 2019, Volvo Cars launched BS-VI compliant XC40 T4 R-Design petrol variant in India at a price of INR 39.9 lakh. According to the company, the XC40 is the only vehicle in the segment to have radar-based Active Safety features, like City Safety with Steering Assist, which activates at speeds above 50 kmpl and helps in collision avoidance.
  • Jaguar Land Rover (JLR) SUVs also witnessed significant growth in sales and accounted for over 50% of the total sales in the country. In February 2020, JLR launched a new BS-VI compliant Discovery Sport in India at a starting price of INR 57.06 lakh for the S model and INR 60.89 lakh for the R-Dynamic SE model.

The aforementioned developments and instances indicate a favorable environment in the Indian Luxury car market; hence, such advancements are likely to support market growth over the forecast period.

India Luxury Car Market, Sales Volume (in Units), by OEM, FY 2021

Electric segment Expected to Dominate the Market

The luxury electric vehicle market in India is getting popular, with the likes of Mercedes-Benz, Audi, BMW, and Volvo lining up many launches and state governments making a beeline to support Tesla's entry into the country. Mercedes-Benz, the leader in India's luxury-vehicle market, has announced plans to introduce the EQS saloon later in the year. The car is likely to be priced closer to its petrol equivalent.

Attractive incentives for manufacturing electric vehicles in India, promoting manufacturers to build electric vehicles in the country. The GST rate of just 5% for electric vehicles and as high as 50%, including cess, for premium diesel or petrol-powered passenger vehicles, is a key enticement for automakers to bring in electric vehicles.

Major luxury car makers launching their new models across the country will likely witness major market growth. For instance,

  • In January 2022, Mercedes-Benz announced that it was bringing its flagship luxury sedan, the Mercedes-Benz EQS, to India. Additionally, Mercedes-Benz has also announced that the Mercedes-Benz EQS will be locally produced in India, making it the first locally produced luxury electric vehicle in India. Interestingly, Mercedes-Benz was also the first automaker to launch a luxury electric car in the Indian market in the form of the Mercedes-Benz EQC.
  • In July 2021, Audi, the German luxury car manufacturer, is set to start its electric journey in India with the launch of the Audi e-Tron. Audi India will offer the Audi e-tron in two body styles - Audi e-tron and Audi e-tron Sportback to give customers the broadest range within the luxury EV segment. Audi e-tron buyers will further have the choice of the Audi e-tron 50 and Audi e-tron 55. The Audi e-tron Sportback will be available in the e-tron 55 variant.

With growing environmental concerns due to rising exhaust emissions, governments and environmental associations are tightening emission norms across the country. As a result, the demand for sustainable and eco-friendly transportation, such as EVs, is increasing, with governments offering higher incentives and subsidies to these vehicle owners.

  • Automakers are launching EVs even in developing markets. In January 2022, Mercedes Benz launched the first luxury electric vehicle in India, the EQC SUV. The vehicle is powered by two asynchronous motors, one on each axle, producing a combined 408hp and 765Nm of torque. A floor-mounted 85kWh lithium-ion battery pack can deliver a WLTP-certified range of 400km on a single charge.

Additionally, luxury car component manufacturers are focusing on developing next-generation intelligent mobility technologies, such as autonomous driving, personal voice assistance, and retina recognition, which are expected to boost the sales of luxury EVs over the forecast period.

India Luxury Car Market, Sales Volume (in Units), by OEM, FY 2021

India Luxury Car Industry Overview

Some of the prominent players in the market are Mercedes-Benz, BMW, Audi, Jaguar Land Rover, Lexus, and Volvo, among others. Mercedes-Benz, BMW, and Audi are the top luxury car manufacturers. These car manufacturers have collectively reported sales of around 22,500 units through 2021. Major Luxury car brands are expanding their network across the country. For instance,

  • In March 2022, Audi planned to develop the market in India by bringing in more brands and expanding the network across the country. Internationally, the electric SUV is available with two battery options - 52 kWh and 77 kWh - in multiple variants. Like the e-Tron, the Q4 e-Tron is offered in both SUV and coupe-SUV body styles.
  • In October 2021, Mercedes Benz unveiled a new business model that helped boost car sales in India. As part of the new strategy, the luxury car manufacturer intends to offer benefits of 1-2 lakh INR on the selling price to its customers.

India Luxury Car Market Leaders

  1. AB Volvo


  3. AUDI AG

  4. Mercedes-Benz AG

  5. BMW AG

*Disclaimer: Major Players sorted in no particular order

India Luxury Car Market Concentration

India Luxury Car Market News

  • In March 2022, Mercedes-Benz India launched a new S-Class sedan under its luxury brand, Maybach. The 2022 Mercedes Maybach S-Class is available in India at a starting price of INR 2.5 crore (ex-showroom). The new Maybach S-Class will be available both as locally manufactured units and completely built units (CBU).
  • In December 2021, Aston Martin's first-ever SUV was launched in India in January this year at INR 3.82 crore. The SUV comes with a Mercedes-AMG-sourced 4.0-liter twin-turbo V8 engine that puts out 542 bhp with 700 Nm in combination with a nine-speed automatic gearbox.
  • In November 2021, Audi launched its new luxury SUV for India- the new Q5 at a starting price of Rs 58.9 lakh. The Q5 is an important SUV since the earlier model formed a large chunk of its SUV sales in India.
  • In October 2021, The fifth-generation Jaguar F-Pace with MHV version made its debut on the market. Jaguar offers the F-Pace in four trim levels: F-Pace 250, 250 S, S 340, and R-Dynamic S 400. The S 340 uses a 3.0-liter six-cylinder turbocharged mild hybrid with 335 hp. Finally, the R-Dynamic S uses the same engine and boosts power slightly to 395bhp.

India Luxury Car Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Buyers/Consumers

      2. 4.3.2 Bargaining Power of Suppliers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size Value - USD billion)

    1. 5.1 By Vehicle Type

      1. 5.1.1 Hatchback

      2. 5.1.2 Sedan

      3. 5.1.3 SUV

    2. 5.2 By Drive Type

      1. 5.2.1 IC Engine

      2. 5.2.2 Electric

    3. 5.3 By Price Range

      1. 5.3.1 INR 20 Lakh - 50 Lakh

      2. 5.3.2 INR 50 Lakh - 80 Lakh

      3. 5.3.3 Above INR 80 Lakh


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Mercedes-Benz AG

      2. 6.2.2 Volvo AB

      3. 6.2.3 BMW AG

      4. 6.2.4 Audi AG


      6. 6.2.6 Rolls-Royce Holding PLC

      7. 6.2.7 Bentley Motors

      8. 6.2.8 Lexus Motors

      9. 6.2.9 Porsche India


**Subject to Availability

India Luxury Car Industry Segmentation

The term luxury is used to categorize vehicles that are equipped with better performance capabilities, lavish interiors, and all the latest safety and technology features. The Indian luxury car market covers all the latest R&D initiatives. Investments are made by the government and vehicle manufacturers across the country. India's Luxury Car market is segmented into vehicle type, drive type, and price range.

Based on the vehicle type, the market is segmented into Hatchback, Sedan, and SUV. Based on the drive type, the market is segmented into IC Engine and Electric. Based on the price range, the market is segmented into INR 20 Lakh - 50 Lakh, INR 50 Lakh - 80 Lakh, and Above INR 80 Lakh. For each segment, market sizing and forecast have been done on the basis of value (USD billion).

By Vehicle Type
By Drive Type
IC Engine
By Price Range
INR 20 Lakh - 50 Lakh
INR 50 Lakh - 80 Lakh
Above INR 80 Lakh

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India Luxury Car Market Research FAQs

The India Luxury Car Market is projected to register a CAGR of 6.4% during the forecast period (2023-2028).

AB Volvo, JAGUAR LAND ROVER LIMITED, AUDI AG, Mercedes-Benz AG and BMW AG are the major companies operating in the India Luxury Car Market.

India Luxury Car Industry Report

The Indian premium car market is witnessing an upsurge in demand due to the introduction of multiple models with diverse price brackets and customer-friendly financing plans. High-end SUVs are particularly sought-after, providing additional space and comfort. Major elite car manufacturers such as Audi, BMW, and Mercedes are strategizing to introduce new upscale car models in the country at competitive rates. The market is also observing a growing fondness for electric cars, with key players launching new models and planning future strategies. The market is further bolstered by new entrants into the electric lavish car space in India. The Indian plush car market encompasses all the latest R&D initiatives and investments made by the government and vehicle manufacturers across the nation. The market is segmented into vehicle type, drive type, and price range. For a more comprehensive analysis, a free PDF download of the report is available.

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