The Indian luxury car market continues to thrive, with brands like Mercedes-Benz, BMW, Jaguar Land Rover, Audi, and Volvo dominating sales. In FY2025, a total of 48,849 luxury cars were sold, marking a modest 0.55% year-on-year growth compared to FY2024. Let’s break down the sales performance of the top five luxury carmakers in India.
1. Mercedes-Benz: The Undisputed Leader
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FY2025 Sales: 18,928 units
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Growth: +4% YoY
Mercedes-Benz retains its crown as India’s top luxury car seller, thanks to strong demand for models like the C-Class, E-Class, and GLC SUV. The brand’s local manufacturing strategy and aggressive financing options have kept it ahead of rivals.
2. BMW: Strong Second Place
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FY2025 Sales: 15,995 units
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Growth: +4% YoY
BMW closely follows Mercedes, with popular models like the 3 Series, X1, and X5 driving sales. The brand’s performance-oriented M variants and electric offerings (iX, i4) have also contributed to steady growth.
3. Jaguar Land Rover: Fastest Growth
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FY2025 Sales: 6,183 units
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Growth: +40% YoY
JLR saw the highest growth among luxury brands, fueled by the new Range Rover Velar and Defender’s rising popularity. The brand’s rugged luxury appeal is resonating well with Indian buyers.
4. Audi: Facing a Decline
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FY2025 Sales: 5,993 units
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Growth: -15% YoY
Audi struggled this year, possibly due to limited new launches and stronger competition. However, models like the Q3 and A4 remain popular among executives and young professionals.
5. Volvo: Niche but Premium
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FY2025 Sales: 1,750 units
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Growth: -18.6% YoY
Volvo, known for its safety and Scandinavian luxury, saw a dip in sales. However, its electric XC40 Recharge and hybrid models could help rebound in the coming year.
Key Market Insights
✅ Mercedes & BMW control ~70% of India’s luxury car market
✅ JLR’s 40% growth is the highest in the segment
✅ Audi & Volvo need fresh models to regain momentum
✅ EVs & hybrids are becoming key growth drivers
Final Verdict
While Mercedes and BMW continue to dominate, Jaguar Land Rover’s explosive growth shows shifting buyer preferences. Audi and Volvo must reinvigorate their lineups to stay competitive.