Mercedes Benz, BMW Group, and JLR posted their highest-ever year of sales, whereas Audi and Volvo posted a decline.
09 Jan 2025 | 14194 Views | By Ketan Thakkar
India's luxury car market crossed a significant milestone, surpassing 50,000 units for the first time in 2024. However, growth slowed to single digits due to a sluggish economy and reduced government spending during the election year.
Industry insiders estimate that the luxury car market grew by 6%, reaching approximately ...
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India's luxury car market crossed a significant milestone, surpassing 50,000 units for the first time in 2024. However, growth slowed to single digits due to a sluggish economy and reduced government spending during the election year.
Industry insiders estimate that the luxury car market grew by 6%, reaching approximately 51,200 units sold.
The market grew by 9% in the first half (H1) of 2024 but slowed to 2-3% in the second half (H2) due to economic uncertainty and shifting consumer sentiment. This follows three consecutive years of double-digit growth.
Mercedes-Benz India and BMW India achieved record sales totals, while Audi, Volvo, and Mini reportedly experienced double-digit declines in annual sales due to macroeconomic headwinds and supply-side challenges. Jaguar Land Rover and Lexus, however, maintained their double-digit growth in 2024.
Santosh Iyer, MD & CEO of Mercedes Benz India, says, “The year 2024 was phenomenal for Mercedes Benz, and we achieved our highest-ever sales, posting 12.4% growth. While the market grew by 9% in the first half, the second was not that strong, but Mercedes Benz could do better than the market.”
Just like Mercedes-Benz, which launched 14 new models that helped the company achieve its highest-ever sales, BMW Group India had a strong product offensive in the country. Vikram Pawah, President and CEO of BMW Group India, claimed this helped the maker of the 7 Series cross a new peak of 15,000 units.
“The strong product offensive in the luxury car segment, paired with introducing new initiatives like Retail.NEXT and the expansion of bespoke experiences and services for our customers helped. BMW is leading significantly across segments in the Indian luxury car market, including sustainable electric mobility, Luxury Class, and aspirational premium compact segment,” added Pawah.
The growth rate might have corrected in the core market, around the Rs 70 lakh to Rs 90 lakh segment, to single digits, but the high-end super luxury car segment priced above Rs 1.5 crore has done well for both Mercedes-Benz and BMW India.
Mercedes-Benz India posted 30% growth in its Top-End Vehicle segment, or TEV, as it likes to call it. The company sold nearly 5,000 TEVs in 2024; essentially, one in every four cars sold by Mercedes-Benz was over Rs 1.5 crore.
BMW Group, which calls this the Luxury Class segment—vehicles priced above Rs 1.5 crore—saw 8% growth and sales of 2,507 units. Nearly every fifth car that BMW sold in India in 2024 was a top-of-the-range model.
In 2024, the BMW X7 was again the highest-selling Luxury Class model (1,570 units | +4%). Since its launch, more than 5,000 units of the BMW X7 have been delivered in India.
Neck-to-Neck Battle for Number in EVs
Mercedes-Benz's BEV portfolio continued to gain strong customer preference, growing significantly by 94% year-on-year, with enhanced penetration of more than 6% in YTD Jan-Dec 2024 sales. The introduction of four new BEVs in 2024, comprising the EQA 250+, 5-seater EQB SUV, 'Made in India' EQS SUV 580, and the ultra-luxurious Mercedes-Maybach EQS SUV, expanded the BEV portfolio and created strong customer interest in Mercedes-Benz BEVs.
The company claims that Mercedes-Benz's current offering comprises a BEV suited to each customer's preference and requirements. BEV sales were boosted by 110% in Q4 2024 alone.
The company launched two new BEVs in the Indian market: the 5-seater 'Made in India' EQS 450 SUV and the G-Class in its BEV version, the G 580 with EQ Technology. These BEVs will further add to Mercedes-Benz India's increasing BEV portfolio, accelerating its BEV adoption.
Mercedes-Benz India claims to lead the luxury BEV segment, selling the most BEVs in a single year. BMW Group India, on its part, says it held the top electric mobility position for the third consecutive year.
Thanks to the widest range of electric vehicles in the luxury segment, complemented by a growing charging network, BMW Group India sold 1,249 fully electric BMW and MINI cars. Merc is leading as the single largest brand; however, the Munich-based luxury car maker may be ahead as a group for BMW between Mini and BMW-branded EVs.
According to a statement from BMW Group India, the i7 was the largest-selling EV in its class, with 384 units. The maker of the 5 Series and 7 Series said it has also reached 3,000 EV deliveries to date, becoming the first luxury car manufacturer in the country to reach this milestone. BMW iX is India's most popular luxury EV, with over 1,100 units sold.
On the way ahead, Iyer said he expects the brand's market to grow. The headwinds faced by the market in the second half of 2024 pulled down the growth rate to single digits; hence, it is tough to guide the growth rate for 2025 amid challenges of currency fluctuations, which may lead to price increases and affect demand. Nevertheless, Mercedes-Benz is aiming for another record year, backed by new model launches and an expanding dealership footprint.