Luxury EV Sales in India Jump 66% as Emerging Markets Like Gujarat and Kerala See Rising Adoption

Luxury electric vehicles are gaining strong traction in India, with sales rising 66% year on year to 2,027 units during the first five months of 2025, as per data from the Ministry of Road Transport and Highways’ VAHAN portal. This marks a significant jump from 1,223 units sold during the same period in 2024, indicating a steady shift in preference toward cleaner and more premium mobility solutions among high-end buyers.

Luxury EV Sales See Robust Growth In 2025

Luxury electric vehicle (EV) sales in India have seen a significant rise of 66% year on year, with 2,027 units sold during the first five months of 2025, compared to 1,223 units in the same period in 2024. This data is sourced from the VAHAN portal of the Ministry of Road Transport and Highways.

This surge reflects a growing appetite for sustainable mobility among affluent Indian consumers. The EV share within the luxury vehicle market has increased to 11% in the first half of 2025, up from 7% in the corresponding period last year.

Mercedes-Benz India Leads With 73% Growth

Mercedes-Benz India reported a strong 73% increase in EV sales during this period. The brand continues to see heightened interest in metropolitan areas such as Delhi NCR, Mumbai, Hyderabad, and Bengaluru.

Interestingly, states like Gujarat and Kerala, traditionally not major markets for luxury vehicles, are now emerging as promising regions for electric mobility.

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BMW India Outpaces Target, Now Eyes 30% EV Share

BMW Group India has also seen rising traction, offering 6 electric models across its portfolio. The company has surpassed its earlier EV sales goal of 15% for 2025, already reaching 17%. With this momentum, BMW is now targeting a 30% EV contribution by 2030.

Even Tier-II cities such as Jaipur are contributing to this growth, indicating a broader acceptance of electric luxury vehicles beyond the top metros.

Luxury Vehicle Market Outlook Remains Positive

While luxury vehicles comprise just over 1% of the Indian automobile market, the segment continues to hold strong potential. In 2024, the luxury vehicle market grew 8% to reach sales of 54,000 units, and high single-digit growth is projected for 2025.

According to Mercedes-Benz India’s Managing Director, Mr. Santosh Iyer, the Reserve Bank of India's recent interest rate cuts could further boost demand in the coming quarters.

Conclusion 

A key driver for luxury EV sales is the rising number of ultra-high-net-worth individuals in India. Knight Frank’s The Wealth Report 2024 forecasts a 50% increase in individuals with a net worth exceeding ₹258.3 crore (equivalent to $30 million) by 2028.

This would represent the highest global growth in this category, making India a vital market for premium and electric mobility solutions.

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