Despite a challenging year for India’s mass-market automotive sector, the luxury car segment in FY2025 saw robust growth. With evolving buyer preferences, increasing interest in premium SUVs, and expanding EV portfolios, top-tier manufacturers posted strong numbers. Mercedes-Benz retained its leadership position, while Jaguar Land Rover (JLR) recorded its best-ever performance in the country. Lexus, BMW, and Audi also showed notable growth, with rising demand for long-wheelbase sedans and high-end SUVs.
Mercedes-Benz Retains Top Spot with Highest-Ever Annual Sales
Mercedes-Benz India maintained its lead in FY2025 with total retail sales of 18,928 units, marking a 4 percent year-on-year growth. This figure represents the brand’s highest-ever annual sales in India.
The E-Class Long Wheelbase (LWB) continued to dominate the lineup, holding its position as both Mercedes’ top-selling model and the bestselling luxury car in India. SUVs played a significant role in the brand’s success, contributing 60 percent of total sales.
Mercedes also reported impressive growth in its Top-End Vehicle (TEV) segment—vehicles priced above ₹1.5 crore—with a 34 percent increase. Key performers included the AMG G63, the Maybach Night Series, and the newly launched electric G-Class. In the EV space, the EQS SUV led the charge as the brand’s bestselling electric vehicle, contributing to a 51 percent YoY growth in EV sales.
However, in Q4 FY2025 (January–March), Mercedes-Benz saw an 11.8 percent drop in retail sales, delivering 4,775 units. The company attributed this decline to reduced demand in the entry-level luxury segment, while the TEV category continued to expand with a 6 percent growth in the same period.
Jaguar Land Rover Achieves Record Sales with 40 Percent Growth
Jaguar Land Rover India delivered a standout performance in FY2025, retailing 6,183 units, reflecting a massive 40 percent YoY increase—the highest ever in its 17-year presence in India.
The Defender SUV emerged as JLR’s top performer, achieving a 90 percent growth over the previous year. The brand also saw impressive numbers from the locally assembled Range Rover and Range Rover Sport, with 72 percent and 42 percent YoY growth, respectively.
In Q4 FY2025, JLR’s momentum accelerated, with 1,793 units sold, up 110 percent YoY, while dispatches rose 118 percent to 1,710 units—marking the brand’s highest-ever quarterly sales in the country.
Lexus India Reports 19 Percent Growth; NX SUV in Demand
Lexus India maintained steady growth throughout the financial year, reporting a 19 percent YoY increase in FY2025. Though the brand didn’t release specific volume figures, its performance was driven primarily by demand for the NX SUV, which remained the bestseller in its portfolio.
The luxury division of Toyota also saw strong traction for the RX SUV and the LM MPV, especially in March 2025, when it achieved its highest-ever monthly sales in India. Q4 FY2025 witnessed a 17 percent YoY growth, confirming Lexus’s increasing relevance in the premium SUV and MPV segments.
BMW Group Grows 7 Percent in Q4; EV Sales Up Over 200 Percent
While BMW Group India has not disclosed full-year FY2025 sales data, it reported strong numbers in Q4, retailing 3,914 cars, including 3,764 BMWs and 150 Minis, reflecting a 7 percent YoY increase for the quarter.
The brand’s electric lineup saw exponential growth, with 646 EV units sold, marking a 206 percent jump. Key contributors included the BMW iX1 and other electrified models. The BMW 5 Series LWB led sedan sales in Q4, followed by rising demand for the 3 Series, 7 Series, and other long-wheelbase variants.
BMW’s SUV range accounted for 55 percent of total Q4 sales, with 2,079 units sold, signaling the consistent popularity of luxury SUVs in India’s evolving auto landscape.
Audi India Sees 17 Percent Growth in Q4; RS Q8 Sold Out Until Q3 2025
Audi India, similar to BMW, reported its Q4 FY2025 performance, recording 1,223 units sold, up 17 percent YoY. The Audi Approved Plus pre-owned car program also showed strong traction, with a 23 percent increase during the quarter.
Popular models driving Audi’s Q4 sales included the Q7 and Q8 SUVs, while the newly launched RS Q8 was sold out until Q3 FY2026, highlighting the rising appeal of high-performance luxury vehicles in India.
Key Trends in India’s FY2025 Luxury Car Market
- SUV Dominance: Across all brands, SUVs accounted for more than 50 percent of sales, highlighting continued consumer preference for premium utility vehicles.
- Long Wheelbase Sedans Rising: LWB variants like the E-Class, 5 Series, and 7 Series remained strong contributors to their respective brands.
- EV Segment Gaining Ground: EV sales across brands such as Mercedes, BMW, and Audi saw significant YoY growth, indicating a growing shift toward luxury electric mobility.
- TEVs in High Demand: Ultra-premium vehicles priced above ₹1.5 crore, especially from Mercedes-Benz and Audi, are witnessing growing traction among affluent Indian buyers.
- Pre-Owned Luxury Vehicles: Audi’s success in the certified used car space shows increasing interest in luxury at a more accessible price point.
Conclusion
FY2025 marked a significant year for India’s luxury car industry. Mercedes-Benz remains the undisputed leader, with consistent growth across its TEV and EV portfolios. Jaguar Land Rover’s record-breaking performance, paired with BMW and Lexus’s steady rise, shows that the premium car segment is thriving in India, defying broader market trends.
As consumer preferences shift toward SUVs, electrification, and long-wheelbase comfort, manufacturers are evolving their lineups accordingly. FY2026 is poised to witness even more innovation, model launches, and competition in this dynamic and growing sector.