Mercedes Leads, BMW Chases in India’s Booming Luxury Car Market
India’s appetite for luxury vehicles has surged significantly over the past three years, mirroring a global trend. The financial year 2024 (FY2024) saw cumulative sales from seven major luxury carmakers reach 45,311 units, marking a substantial 20.5 percent increase, according to data from JATO Dynamics India. This growth highlights the increasing demand for high-end automobiles, with luxury SUVs experiencing a remarkable 34 percent jump to 27,489 units, while luxury sedans grew at a slower pace of 6.5 percent, totaling 17,569 units. Understanding which models top the charts reveals key insights into consumer preferences, particularly regarding the Most Selling Luxury Car In India.
The luxury car landscape in India is dominated by German manufacturers, with Mercedes-Benz India holding onto its leadership position, closely followed by a rapidly growing BMW India. Audi India also posted strong growth figures. Let’s delve into the performance details of these key players and others shaping the premium automotive segment.
Bar chart showing FY2024 sales figures for top luxury car brands in India
Mercedes-Benz Maintains Top Spot
Mercedes-Benz C-Class sedan driving on a road, symbolizing the brand's lead in the Indian luxury market
Market leader Mercedes-Benz India reported sales of 17,013 units in FY2024, a 3 percent rise compared to the previous year. SUVs constituted 56 percent of these sales, with sedans making up the remaining 44 percent. Notably, one in every four vehicles sold by Mercedes-Benz belonged to the top-end segment, defined by the company as vehicles priced over Rs 1.5 crore.
The brand’s sedan lineup, featuring the A-Class, C-Class, LWB E-Class, and S-Class, enjoyed strong demand. The outgoing Long Wheelbase (LWB) E-Class continued its reign as the highest-selling Mercedes-Benz model in India for FY2024, with 3,561 units sold, representing a 12.7 percent increase.
Among its SUV offerings, the GLE emerged as the most popular model with 2,349 units sold (up 8.2 percent), reclaiming its title from the previous year as India’s top-selling luxury SUV. It was followed by the GLA (2,213 units) and the GLC (1,925 units). The larger GLS ranked fourth with 1,529 units, though its sales saw a significant drop of nearly 31 percent compared to the previous year. The iconic G-Class found 219 buyers.
In the electric vehicle (EV) space, Mercedes sold 311 units of the EQB SUV and 116 units of the EQE SUV. However, rival BMW demonstrated stronger performance in the luxury EV segment.
BMW Closes the Gap with Strong Growth
Blue BMW 3 Series sedan parked, highlighting BMW's strong sedan sales performance in India
BMW India secured its second position with impressive sales of 14,479 units, reflecting a robust 28 percent year-on-year growth. Uniquely among the top three, BMW sold more sedans than SUVs in FY2024, with sedans accounting for 51 percent of its total volume. The 3 Series remained its bestseller overall and its top-selling sedan with 2,652 units. Other popular sedans included the 6 Series (1,428 units), 2 Series (1,073 units), and 5 Series (1,059 units).
In the SUV category, the X1 led the charge with 2,996 units, making it not only BMW’s top-selling SUV but also the bestselling midsize luxury SUV in India for FY2024. The X7 followed with 1,644 units, along with the X3 (1,089 units). BMW’s electric iX SUV showed exceptional growth, selling 738 units – a staggering 729 percent increase, significantly outpacing Mercedes’ EV offerings.
Audi Achieves Significant Gains
Front view of a white Audi Q5 SUV, illustrating Audi's SUV-driven growth in the Indian luxury car market
Audi India demonstrated strong momentum, recording a 33 percent growth in FY2024 with 7,027 units sold. This growth was heavily driven by its SUV portfolio, which saw a 72 percent surge to 4,425 units. Sedan sales experienced a slight dip of 3.9 percent, totaling 2,602 units.
Sales of the Audi Q3 quadrupled to 1,965 units, making it the brand’s clear bestseller. The Q7 (742 units, up nearly 23 percent) and the Q5 (735 units) were closely matched as the next most popular Audi SUVs. The stylish Q3 Sportback contributed 658 units. Among sedans, the A4 performed exceptionally well, with sales increasing by 50 percent to 1,521 units, while the A6 saw a decline of over 40 percent, settling at 920 units.
Bar chart comparing luxury SUV sales figures for key models in India during FY2024
Land Rover Climbs the Ranks
Land Rover India achieved remarkable 82 percent growth, selling 3,061 units. This performance propelled the brand up one rank to the fourth position, overtaking Volvo Auto India. The Tata Motors-owned marque benefited significantly from the popularity of the Land Rover Defender, which saw sales increase 2.5 times to 1,314 units compared to the previous year.
Demand for higher-end models was evident, with the Range Rover Velar (556 units) and Range Rover Sport (404 units) being the next most sought-after models. The flagship Range Rover, the brand’s most expensive offering, was purchased by 394 customers. Sales of the Range Rover Evoque increased by 13 percent to 190 units, while the Land Rover Discovery Sport sold 197 units (up 26 percent), and the Discovery added six units.
Volvo Posts Steady Growth
Front three-quarter view of a white Volvo XC60 SUV, Volvo India's best-selling model in FY2024
Volvo Auto India slipped back to the fifth position but still recorded a healthy 27 percent year-on-year growth, selling 2,522 units. The XC60 SUV was its most popular model with 867 units sold. It was followed by the XC40 (769 units), XC90 (449 units), and the electric C40 (212 units). The brand’s sole sedan offering, the S90, found 225 buyers.
Mini Sees Strong Countryman Sales
Red Mini Countryman parked outdoors, representing the bulk of Mini's sales in India
Mini, part of the BMW Group, sold 937 units in FY2024, an increase of 34 percent. The Mini Countryman was the driving force behind this growth, accounting for nearly 75 percent of the brand’s total sales with 695 units sold.
Jaguar Records Modest Increase
Jaguar F-Pace SUV driving on a winding road, Jaguar India's top-selling model
Jaguar India ranked seventh, achieving a 22 percent growth with 272 units sold. The F-Pace SUV dominated its sales chart with 221 units. The electric I-Pace contributed 31 units, and the F-Type sports car added 20 units.
Lexus Reports Strong Growth Percentage
Japanese luxury brand Lexus, having completed seven years in India, announced a significant 63 percent year-on-year growth for FY2024. While specific unit numbers were not provided in the JATO data, Lexus stated that its most popular models in the Indian market are the NX350h SUV and the ES300h sedan.
Pie chart showing market share distribution among luxury car brands in India for FY2024
Luxury EV Segment: BMW Takes Commanding Lead
Silver BMW iX electric SUV parked, highlighting BMW's leadership in the Indian luxury EV market
Luxury automakers in India are actively expanding their electric vehicle offerings. Retail sales data indicates that a total of 2,870 luxury EVs were sold in FY2024. BMW India emerged as the clear leader in this space, accounting for nearly half of all luxury EV sales with 1,421 units. Volvo India followed with 598 units, Mercedes-Benz India sold 564 units, Audi India registered 165 units, and Porsche sold 114 electric vehicles.
Conclusion: Dynamic Market with Shifting Tastes
The Indian luxury car market demonstrated robust health in FY2024, driven primarily by soaring demand for SUVs. While Mercedes-Benz retained its crown, BMW’s significant growth, particularly in sedans and the burgeoning EV segment, signals intensifying competition. Audi and Land Rover also posted impressive gains, indicating a dynamic market where brand performance can shift rapidly. The data underscores a clear preference for SUVs across most brands, although BMW’s success with sedans shows diverse tastes within the luxury segment. The increasing traction of high-end models and luxury EVs points towards evolving consumer preferences and a promising future for the premium automotive sector in India.
Data Source: JATO Dynamics India
