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There’s a warm, exciting change sweeping through India’s roads — luxury cars, once synonymous with business owners and traditional elites, are now becoming the symbol of a broader group of achievers. Imagine the city streets dotted with sleek Mercedes-Benz, BMW, and Audi models not only owned by the founders of startups but increasingly by salaried professionals, doctors, lawyers, and chartered accountants whose growing incomes and ambitions have opened new avenues of aspiration.
Luxury Cars Now More Accessible
- Over the past five years, the share of salaried professionals and startup founders buying these luxury brands has doubled
- These brands account for nearly 85% of the Indian luxury car market
- Increased corporate earnings and ESOP payouts fuel deeper luxury consumption
- The number of dollar millionaire households in India rose by 90% in four years, expanding the buyer pool
Changing Mindsets Drive Demand
Senior executives from luxury carmakers highlight a significant shift: Indian consumers today prioritize experiences over just savings. The aspirational buyer of today is well-informed, globally connected, and eager to indulge in premium ownership. There's now a vital segment (₹20-50 lakh range) bridging mass-market and luxury vehicles, nurturing a growing base of customers ready to make the leap into luxury.
Market Share and Growth Snapshot
|
Brand |
Contribution from Salaried & Startups |
Market Share of Luxury Segment |
Growth in Last 5 Years |
|
Mercedes-Benz |
Up to 15% |
Leading (~40-45%) |
Doubled |
|
Audi |
Up to 18% |
~25-30% |
Significant Increase |
|
BMW |
Around 30% |
~25-30% |
Strong Double Digit |
Expert Perspectives
Santosh Iyer, MD of Mercedes-Benz India, notes wealth creation now spans senior corporate professionals, not just founders. Audi India’s head, Balbir Singh Dhillon, discusses the premiumisation trend powered by rising incomes and changing lifestyles. BMW Group India's President, Hardeep Singh Brar, confirms double-digit growth in luxury sales driven by salaried owners and startup entrepreneurs.
Why This Matters
India’s luxury car market nearly doubled in sales from 28,600 units in 2020 to over 51,000 in 2024, propelled by a younger, wealthier demographic redefining luxury. This growth reflects India’s rapid economic ascent and evolving consumer mindset — from traditional saving to experiential spending, with luxury cars as a key status and lifestyle symbol.
