These Are the Leading Luxury Car Brands Shaping India’s Market

Luxury cars first appeared in the late 1800s and early 1900s, when the wealthy wanted more than just a simple way to get around. With soft leather seats, fancy sound systems and latest gadgets at the time, these vehicles were more like moving works of art. Each one was made by hand, with great care and attention to detail, making them quite expensive. 

In the 1920s and 1930s, luxury car makers started pushing the envelope with new technology. Cars got sleeker, engines got more powerful and the ride became smoother. 

After World War II, the market got a bit tougher as more companies entered the game and people’s tastes began to change. Suddenly, it wasn’t just about looking good—drivers wanted to feel comfortable too. Car makers responded by focusing on features that made driving easier like air conditioning, effortless power steering and the convenience of automatic transmissions. These became the new must-haves in every high-end car.

By the 1980s and 1990s, luxury car brands were diving into the latest tech trends. They started adding turbo engines for extra power, fuel injection for better performance and even computerised systems to help control how the car ran. It was a time when luxury cars became as much about the brains under the hood as they were about comfort and style.

A glance at the Indian market

In recent years, India has caught on to a global trend with a growing appetite for luxury and super-luxury cars and SUVs. This high-end market has reached new heights in FY2023-2024. Luxury car sales from seven top brands in India totaled 45,311 units this year, marking a 20.5% increase compared to the 37,615 units sold in FY2023.

Demand for luxury SUVs in India has grown significantly, with 27,489 units sold—a 34% increase from last year. Meanwhile, luxury sedans saw a smaller rise, going up 6.5% to 17,569 units. The top three manufacturers, all German, have experienced strong double-digit growth. Mercedes-Benz India continues to lead the market, but BMW India is closing the gap quickly.

Commanders of the segment

Mercedes-Benz leads the pack, grabbing a 47% market share with 17,017 cars sold. BMW follows with 32%, selling 14,479 vehicles. Audi comes in next at 15% with 7,027 cars on the road, while Volvo holds 7% with 3,061 vehicles sold. Land Rover takes 6% of the market with 2,522 units, Mini captures 2% with 937 cars, and Jaguar rounds out the list with a 1% share, selling 272 vehicles.

1. Mercedes Benz

Mercedes-Benz, a name that’s familiar to almost everyone, continues to make a big impression in India. As one of the biggest makers of luxury cars worldwide, Mercedes-Benz entered the Indian market back in 1994 and has carved out a solid place for itself in the country’s luxury car segment ever since.

Selling 17,013 vehicles this year, the automobile company has seen a 3% increase from the 16,497 sold last year. Of these, 56% are SUVs, while 44% are sedans. One in four Mercedes cars sold falls in the top-end luxury category, prived over INR 1.5 crore.

2. BMW

Since BMW started selling cars in India in 2007, it’s become a big name in the luxury car scene. The success has been so remarkable that BMW celebrated producing its 100,000th car at its Chennai plant in 2022.

When it comes to SUVs versus sedans, BMW is unique among the top three brands—it actually sold more sedans than SUVs in FY2024, with a ratio of 49% SUVs to 51% sedans. The 3 Series is the most popular sedan, with 2,652 units sold, followed by the 6 Series (1,428 units), 2 Series (1,073 units) and the 5 Series (1,059 units).

3. Audi

Known for its sporty feel, solid build and modern design, Audi started selling cars in India the same year as BMW. In just a short time, it became a popular choice, building a strong reputation over the past 15 years.

In FY2024, Audi India saw a 33% increase in sales, reaching 7,027 units, up from 5,277 the year before. This includes 4,425 SUVs—a 72% jump—and 2,602 sedans, which saw a slight dip of 3.9%. The Q3 led the charge with a 303% boost, selling 1,965 units. The Q7 and Q5 followed closely behind, with the Q7 selling 742 units (up 33%) and the Q5 with 735 units, making them some of Audi’s most popular SUVs.

4. Volvo

Swedish automaker Volvo is known worldwide for its focus on safety and it continues to uphold that mantle. In FY2024, Volvo Auto India moved to the number four spot, doing away with the fifth spot it held in FY2022, selling 2,522 units—an increase of 27%. Among its models, the XC60 SUV was the most popular, with 867 units sold. It was followed by the XC40 (769 units), XC90 (449 units) and the C40 (212 units).

5. Land Rover

Next up is Land Rover, another familiar British name. Tata took over Land Rover, along with Jaguar, back in 2008 and now Land Rover builds a variety of models like the Discovery, Discovery Sport, Evoque, Range Rover, Range Rover Sport and Velar at its Chakan plant in Pune. This local production has made their prices more competitive and boosted sales in India.

In FY2024, Land Rover moved to fifth place with 3,061 units sold and a 82% growth. The rising interest in premium models is clear, with the Range Rover Velar and RR Sport seeing significant sales growth. The Velar saw a 45% increase, with 556 units sold, while the RR Sport jumped by 86%, reaching 404 units.

6. Mini

Mini, part of the BMW Group, saw a 34% increase in sales, with a total of 937 units sold. Most of these sales were from the Mini Countryman, which proved to be the favorite, with 695 units sold.

7. Jaguar

Since Tata Motors took over, Jaguar has really turned things around and improved its sales. In seventh place this year, Jaguar India sold 272 units, which is a 22% increase from last year. The F-Pace SUV was the top seller with 221 units, while the I-Pace and F-Type followed with 31 and 20 units sold.