India Luxury Car Market Size, Share & Trends 2025-30

 Introduction 

The India luxury car market is valued at USD 1.32 billion in 2025 and is projected to reach USD 1.82 billion by 2030, registering a CAGR of 6.60% over the forecast period.  

The India luxury car market has been experiencing steady growth, driven by rising disposable incomes, changing consumer aspirations, and increasing urbanization. Luxury vehicles in India are no longer seen as just a status symbol but also as a reflection of lifestyle and comfort. With a growing segment of affluent buyers, automakers are investing in expanding their product offerings and localizing models to cater to India’s unique market conditions. The entry of new players, coupled with innovative financing options and rising demand for technologically advanced vehicles, is reshaping the market landscape. 

Key Market Trends 

Growing Demand in Urban Centers 

Metropolitan cities such as Delhi, Mumbai, Bengaluru, and Hyderabad remain the strongholds of luxury car demand. Rapid infrastructure development, better road connectivity, and lifestyle shifts are encouraging premium car ownership in these regions. 

Shift Toward Electric and Hybrid Models 

Environmental awareness and government policies supporting cleaner mobility are pushing luxury carmakers to launch electric and hybrid models in India. Premium brands are actively rolling out electric SUVs and sedans, signaling a long-term transition toward sustainable luxury mobility. 

Customization and Personalization 

Indian consumers are increasingly looking for cars tailored to their preferences. From bespoke interiors to high-tech infotainment systems, customization is emerging as a strong differentiator in the luxury car segment. 

Rise of Pre-Owned Luxury Cars 

The pre-owned luxury car market is growing rapidly, making high-end vehicles accessible to a larger pool of buyers. Certified dealerships and organized players are ensuring quality, boosting consumer confidence in this segment. 

Technology and Connectivity Features 

Integration of advanced driver-assistance systems, connected infotainment, and AI-driven comfort features are becoming standard in luxury models. These innovations appeal to younger, tech-savvy buyers looking for both prestige and functionality. 

Market Segmentation 

By Vehicle Type 

  • Sedans: Known for elegance, comfort, and executive appeal, sedans continue to attract buyers who value sophistication. 

  • SUVs: A dominant choice in recent years, SUVs combine luxury with practicality, making them popular in India’s diverse terrains. 

  • Sports Cars: A niche yet growing category driven by enthusiasts seeking performance and exclusivity. 

By Fuel Type 

  • Petrol 

  • Diesel 

  • Hybrid 

  • Electric 

By Price Range 

  • Entry-level luxury cars 

  • Mid-segment luxury cars 

  • Ultra-luxury cars 

By Geography 

  • North India 

  • South India 

  • West India 

  • East India 

Major Players 

The India luxury car market is shaped by global and domestic brands competing to expand their footprint. Key players include: 

  • Mercedes-Benz – Market leader with a diverse portfolio ranging from entry-level sedans to performance AMG models. 

  • BMW – Known for performance-driven vehicles, especially in the SUV and sedan categories. 

  • Audi – Strong presence in urban markets, focusing on premium SUVs and electric vehicle launches. 

  • Jaguar Land Rover – Popular for its luxury SUVs and a growing emphasis on electric models. 

  • Lexus – Strengthening presence with hybrid-focused premium offerings. 

  • Volvo – Gaining traction with safety-focused luxury SUVs and electrification strategies. 

  • Porsche, Ferrari, and Lamborghini – Catering to niche ultra-luxury and performance car buyers. 

Conclusion 

The India luxury car market is at an exciting phase of growth, blending traditional preferences for premium sedans with the rising popularity of SUVs and electric models. While demand continues to be concentrated in urban regions, increasing accessibility through financing schemes and pre-owned options is broadening the consumer base. Technology, sustainability, and personalization are expected to define the next wave of market expansion. With global luxury brands deepening their commitment to India, the segment is poised for steady growth and innovation in the coming years. 

 

For a detailed overview and more insights, you can refer to the full market research report by Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/india-luxury-car-market?utm_source=blogger 

 

About Mordor Intelligence:  

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. 

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. 

For any inquiries or to access the full report, please contact: 

media@mordorintelligence.com  
https://www.mordorintelligence.com/ 

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