Luxury EV sales zoom 66% in India; 2,027 units sold in just five months
- IBEF
- June 13, 2025
Sales of electric vehicles (EVs) in India’s luxury segment rose by 66% YoY to 2,027 units during the first five months of 2025, up from 1,223 units in the same period of 2024, as per data from the VAHAN portal of the Ministry of Road Transport and Highways. Mercedes-Benz India reported a 73% increase in EV sales during this period, with strong traction in metro cities like Delhi NCR, Mumbai, Hyderabad, and Bengaluru. Emerging markets such as Gujarat and Kerala are also witnessing rising EV adoption. Industry-wide, the share of EVs in luxury vehicle sales rose to 11% in H1 2025 from 7% a year earlier.
BMW Group India, with six electric models, reported growing EV sales, including in Tier-II cities like Jaipur. The company had aimed for 15% of its sales to come from EVs by 2025 but has already reached 17% and now targets 30% by 2030. Overall, luxury vehicle sales are expected to grow in the high single digits this year after an 8% growth to 54,000 units in 2024. Managing Director at Mercedes Benz India, Mr. Santosh Iyer, noted that demand may be further supported by recent interest rate cuts by the Reserve Bank of India. Though luxury cars account for just over 1% of India’s auto market, the segment has significant growth potential given the rising population of ultra-high-net-worth individuals. According to Knight Frank’s ‘The Wealth Report 2024’, India is expected to see a 50% increase in individuals with a net worth of Rs. 258.3 crore (US$ 30 million) or more by 2028, the highest growth globally.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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