Rising meals inflation and falling wages have prompted city shoppers to carry again their automobile buy plans in FY25, as evidenced by muted gross sales within the mass-market phase. Nonetheless, the rich class continued their luxurious purchasing spree, with demand for premium automobiles remaining robust all through the fiscal yr.
Luxurious carmakers bought 51,406 items in FY25, marking a 3% year-on-year (YoY) enhance in comparison with 49,862 items in FY24, and setting a document for the best gross sales in any fiscal yr. This rise got here even because the Indian financial system struggled, with development anticipated to hit a four-year low.
Mercedes-Benz India led the market with 18,928 items bought, marking its best-ever fiscal efficiency. The corporate’s top-end luxurious phase—together with fashions just like the S-Class, Maybach, and AMG—noticed a 34% development. Moreover, electrical automobile (EV) gross sales surged by 51%, with EVs comprising 7% of complete gross sales.
Notably, the AMG G 63, Mercedes-Maybach Night time Sequence, and the brand new G 580 with EQ Expertise generated overwhelming demand, with the ready interval in some instances extending as much as 1 yr. The EV model of the Maybach has additionally seen robust demand.
BMW India secured the second place with 15,810 items bought, a 5% rise from 14,562 items in FY24. Jaguar Land Rover (JLR) skilled a 40% YoY development, promoting 6,183 items and surpassing Audi to turn out to be the third-largest luxurious automobile vendor in India. Beforehand, in calendar yr 2019, JLR had briefly overtaken Audi with gross sales of 5,000 items in comparison with Audi’s 4,594, however Audi regained its third spot in 2020.
The Land Rover Defender was the top-selling mannequin, with a 90% enhance in gross sales. In the meantime, the domestically assembled Vary Rover and Vary Rover Sport SUVs additionally noticed robust development of 72% and 42%, respectively.
Localization efforts and improved product availability offered vital momentum. In Could 2024, JLR started assembling 4 fashions at its Pune facility.
Lexus, the luxurious automobile division of Japanese automaker Toyota Motor Company, reported a sturdy 19% YoY development in FY25. In March 2025, Lexus India recorded its highest-ever month-to-month gross sales, pushed primarily by the NX and RX SUVs.
Audi and Volvo hit the brakes in FY25
In the meantime, Audi, the German luxurious automobile producer, noticed gross sales skid 15% to five,990 items in India throughout FY25, impacted by provide chain constraints.
Volvo confronted an analogous problem, with gross sales dropping 51% YoY to 1,750 items in FY25. The Swedish luxurious carmaker, finest identified for its emphasis on security, is struggling to take care of market share amid robust competitors from different international manufacturers.
Globally, the corporate reported 70,737 automobiles bought in March 2025, down 10% in comparison with the identical interval final yr.
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