Luxury EV Sales in India Surge 66% in 2025 as High-End Buyers Ditch ICE Cars


Luxury EV Sales in India Surge 66% in 2025 as High-End Buyers Ditch ICE Cars




Luxury EV Boom: India’s Premium Car Buyers Embrace Electric in 2025

India’s premium automotive market is undergoing a dramatic shift, with electric vehicles (EVs) emerging as the new favorite among affluent buyers. In 2025, luxury EV sales jumped by a staggering 66%, signaling a growing preference for clean energy over traditional internal combustion engine (ICE) cars.

As per VAHAN data, EVs made up 11% of luxury car sales between January and May 2025, compared to just 7% during the same period in 2024. This sharp rise showcases the accelerated acceptance of electric mobility among India’s elite.

The transformation isn't limited to new cars. The used-luxury vehicle market also reflects this trend — nearly 19% of pre-owned luxury vehicles sold so far in 2025 were EVs, up from less than 5% a year ago, according to Luxury Cart, a key player in the segment.

What’s fueling this demand? A wave of premium EV launches from automotive giants like Mercedes-Benz, BMW, and Audi. Further boosting market optimism are upcoming milestones, including Tesla’s India launch and Jaguar Land Rover’s new mega facility in Tamil Nadu, expected by early 2026.

Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, remarked, “The conversation has shifted from 'Why EV?' to 'Which EV?'.” He highlighted that the EV growth rate in the luxury segment has reached 73% for Mercedes-Benz alone this year.

Government incentives — such as reduced GST and road taxes — are narrowing the price gap between EVs and ICE vehicles. Some luxury EVs are now even 4-5% cheaper than their ICE counterparts, thanks to these tax benefits.

Driving comfort, expanding charging infrastructure, and a wider model range are additional factors attracting buyers. Himanshu Arya, CEO of Luxury Cart, noted that range anxiety is fading as fast-charging networks expand. Audi India now offers access to over 6,500 charging points, and private operators like Statiq are also increasing coverage across highways and metro cities.

A standout launch was the BMW iX1, priced at ₹49 lakh, which set a new benchmark in the segment. Mercedes-Benz also bolstered its lineup with models like the EQA, EQS, EQC, and EQS SUV.

In the first five months of 2025, luxury EV sales rose to 2,027 units from 1,223 units in the same period last year. Overall luxury car sales are expected to cross 60,000 units in 2025, compared to 51,000 in 2024.

Mercedes-Benz and BMW have emerged as dominant forces, with BMW Group India delivering over 1,020 EVs from January to May, accounting for a 58% share of the luxury EV segment.

One major advantage for premium buyers is variety. While the mass-market EV space remains limited, the luxury segment offers numerous electric options. Iyer pointed out that only 30% of dealerships in India even offer EVs in the mass segment, whereas luxury brands provide full portfolios — from gasoline and diesel to hybrids and EVs.

Mercedes-Benz is sticking to its global strategy of giving consumers the freedom to choose. “Whether it’s petrol, diesel, hybrid, or electric — we offer it all,” said Iyer.

India’s luxury EV revolution is well underway — and it’s not just a trend, but a sign of things to come.

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