Even though the Indian luxury car market saw tepid growth, the segment remains dynamic, driven by premium SUVs, expanding EV portfolios and greater localisation. The top five players in the segment, namely Mercedes-Benz, BMW, Jaguar Land Rover, Audi and Volvo, added 48,849 units to the total sales tally in FY25, a 3.54 percent year-on-year growth compared to FY24.

Mercedes-Benz

4 percent year-on-year growth  

E-Class LWB was brand’s bestseller

The E-Class LWB was the brand's bestseller in FY2025.

Mercedes-Benz retained its top position in the luxury car market, with sales growing 4 percent year on year. A major contributor to this performance was the growing demand for its top-end vehicle (TEV) portfolio, comprising models priced above Rs 1.5 crore. Vehicles such as the S-Class, the Maybach range and the G-Class continued to enjoy strong demand, leading to a 34 percent growth in the TEV segment alone. Notably, on account of increasing demand, most of these top-end models command a waiting period, which stretches into many months, a reflection of robust demand and limited supply. 

Electrification is also beginning to play a role in Mercedes’ India strategy. The EQS SUV, Maybach EQS, and the electric G-Class have helped push the share of electrics in Mercedes-Benz’s India sales to 7 percent in FY25. The EQS SUV, now locally assembled, emerged as the bestselling electric vehicle for the brand, outperforming smaller and more affordable models like the EQA, EQB, and EQE SUVs. The brand’s overall volumes continue to be driven by the core line-up, which includes the E-Class LWB, GLC and GLE.

BMW

4 percent year-on-year growth  

Mercedes leads the luxury PV segment, while BMW sells the most luxury EVs.

BMW secured the second spot in the luxury segment, also recording a 4 percent growth in FY25. The 3 Series Long Wheelbase and the new 5 Series Long Wheelbase were the bestselling sedans, while the X1 and X5 were the bestselling SUVs for the brand. 

The locally assembled iX1, launched in January 2025, received a positive market response, especially due to its sub-Rs 50 lakh pricing, positioning it as a compelling option in the entry-luxury EV space. The iX1, along with the uber-premium i7 sedan and iX SUV, comprised 10 percent of BMW’s total sales, making it the top-performing brand in the luxury electric vehicle space.

The Mini brand, which operates under BMW Group India, contributed around 4 percent to BMW’s total volumes, with the Cooper S hot hatchback continuing to enjoy a niche but loyal following.

Jaguar Land Rover

40 percent year-on-year growth

Defender was highest selling model

The Defender saw 90 percent year-on-year growth in FY2025.

Impressively, Jaguar Land Rover (JLR) beat Audi in sales, securing third spot. Jaguar Land Rover sold 6,183 units in FY2025, recording a whopping 40 percent year-on-year growth, and emerging as the fastest-growing luxury car brand in FY25. The key growth driver was the Defender SUV, which saw a staggering 90 percent increase in sales, establishing itself as the brand’s bestseller.

JLR’s strategy to locally assemble high-demand models also paid dividends. The sales of the Range Rover and Range Rover Sport, both now assembled in India, rose 72 percent and 42 percent, respectively. The brand’s focus on the SUV segment and successful localisation has helped significantly enhance its market presence.

Audi

15 percent year-on-year decline

JLR’s growth seems to have come at the expense of Audi, which slipped a rank to number four and reportedly sold 5,993 units in FY25, recording a decline of 15 percent compared to last year. The slump is, no doubt, attributed to the lack of diesels, an ageing portfolio and a slow new product rollout. Audi will have to soldier on with its core products like the A4, Q3, Q7 and Q8.

Volvo

18.60 percent year-on-year decline 

At fifth place in the luxury car market, sales of Volvo India fell by 18.60 percent compared to FY24. The brand’s limited and ageing product portfolio is beginning to take its toll. Furthermore, Volvo’s network is much smaller than other luxury carmakers mentioned above. Staying true to its global sustainability commitments, the brand is steadily transitioning towards electrification. In FY25, one in every three Volvos sold in India was an electric vehicle. The upcoming EX30, a compact electric crossover, is expected to be a key growth catalyst in FY26, positioned below the XC40 Recharge to attract a wider customer base.

Lexus India

19 percent year-on-year growth

NX SUV has been company’s best-seller

Although Lexus India hasn’t given out a specific sales number, the company said it recorded a robust 19 percent on-year growth in FY2025. Meanwhile, Q4 also saw a strong 17 percent growth over the same period in the previous financial year, driven primarily by the Lexus NX SUV. The company also said the LM MPV has been in strong demand. Meanwhile, in March 2025, Lexus India recorded its highest-ever monthly sales to date, primarily on the back of the NX and RX SUVs.