Mercedes-Benz India has revealed that luxury EVs are seeing wider adoption among Indian buyers. Year-on-year (YoY), luxury EV sales jumped 66 percent between January and May 2025, accounting for 11 percent of total luxury car sales in India, up from 7 percent during the same period in 2024.

1. Mercedes-Benz records 76 percent surge in EV sales during Jan-May 2025
2. The German carmaker expects double-digit yearly growth in EV sales this year
3. Luxury EVs are selling at a faster rate than mass-market EVs

Mercedes-Benz luxury EV sales outpace overall market

73 percent YoY jump in EV sales during Jan-May 2025

Mercedes-Benz India recently reported a 73 percent year-on-year increase in EV sales during the first five months of 2025. As per monthly EV sales data obtained from the Vahan registration portal, Mercedes-Benz India has cumulatively sold 501 EVs in 2025 so far. Given this trajectory, the German carmaker is on course to exceed last year’s EV sales of 940 units.

In terms of rankings, BMW currently sits at the top of the luxury EV sales charts, with Mercedes-Benz second and Volvo third.

Factors driving luxury EV adoption

Santosh Iyer, managing director and CEO of Mercedes-Benz India, stated that luxury EV sales growth in India is a result of improved charging infrastructures, greater public awareness and strategic product placement. He also noted that for some models, the price gap between ICE and EV counterparts can be as much as Rs 1 crore. This difference is largely due to policy-driven incentives and lower operational costs, making EVs more attractive to luxury car buyers.

Luxury EV segment growing faster than mass market

EVs on track to accrue major share in luxury arena

EVs now constitute 11 percent of the luxury segment, compared to just 4 percent of the broader mass-market category. Iyer remarked that while EV adoption is not yet explosive, the month-on-month growth trend is “strong”.

Challenges like currency volatility and economic uncertainty cloud the EV market in India, but even so, Mercedes-Benz expects it to record double-digit growth through 2025. The carmaker remains focused on the premium end of India’s EV market and believes that growing customer confidence and infrastructure expansion will drive further adoption.

As it stands, Mercedes-Benz’s EV offerings in India comprise the G-Class Electric, EQS, EQB, EQA and EQE SUVs, as well as the EQS sedan; most of these are priced north of Rs 1 crore (ex-showroom).