India’s luxury electric vehicle (EV) market is experiencing a significant boom, with sales rising by 66% year-over-year in the first five months of 2025. A total of 2,027 luxury EVs were sold, compared to just 1,223 units during the same period in 2024, according to the VAHAN portal under the Ministry of Road Transport and Highways.
Mercedes-Benz India played a key role in this surge, recording a 73% spike in EV sales. Major metropolitan hubs like Delhi NCR, Mumbai, Bengaluru, and Hyderabad led the demand. Meanwhile, newer markets such as Gujarat and Kerala are also seeing growing interest in luxury EVs, highlighting the expanding footprint of green mobility across India.
The luxury EV share of total luxury vehicle sales climbed from 7% in early 2024 to 11% in the first half of 2025. BMW Group India, offering six electric models, is also enjoying strong performance. Notably, BMW’s EVs are gaining traction in Tier-II cities, including Jaipur. The automaker had originally set a 15% EV sales target for 2025 but has already surpassed that with 17%, now eyeing a 30% share by 2030.
Industry experts anticipate luxury auto sales in India will grow in high single digits this year. In 2024, the segment grew by 8%, reaching 54,000 units. Mercedes-Benz India’s Managing Director, Santosh Iyer, mentioned that recent interest rate reductions by the Reserve Bank of India could further fuel consumer demand.
Although luxury vehicles make up a little over 1% of India’s overall automotive market, the segment holds immense potential. A growing number of ultra-high-net-worth individuals is expected to drive long-term growth. According to Knight Frank’s “The Wealth Report 2024,” India is projected to see a 50% rise in individuals with a net worth exceeding $30 million by 2028—the fastest rate globally.
As both premium automakers and emerging regions embrace EVs, India’s luxury EV landscape is shifting gears into a high-growth phase.
