Sales of luxury electric vehicles in India surged by 66%, with 2,027 units sold within a mere five months.

Sales of electric vehicles (EVs) in India's luxury market surged by 66% year-on-year to 2,027 units in the first five months of 2025, compared to 1,223 units during the same time frame in 2024, according to data from the VAHAN portal of the Ministry of Road Transport and Highways. Mercedes-Benz India experienced a 73% rise in EV sales in this period, with significant growth observed in metropolitan areas like Delhi NCR, Mumbai, Hyderabad, and Bengaluru. Additionally, regions such as Gujarat and Kerala are also seeing an increase in EV adoption. Across the industry, the proportion of EVs in luxury vehicle sales grew to 11% in the first half of 2025, up from 7% the previous year. BMW Group India, which offers six electric models, has reported increasing EV sales, even in Tier-II cities like Jaipur. The company had previously set a goal for EVs to account for 15% of its sales by 2025 but has already achieved 17% and aims for 30% by 2030. Overall, luxury vehicle sales are projected to rise in the high single digits this year, following an 8% increase to 54,000 units in 2024. Mr. Santosh Iyer, Managing Director at Mercedes Benz India, remarked that demand could be further bolstered by the recent interest rate cuts implemented by the Reserve Bank of India. Though luxury cars make up just over 1% of India's auto market, there is considerable growth potential in this segment, particularly with the increasing population of ultra-high-net-worth individuals. According to Knight Frank’s ‘The Wealth Report 2024,’ India is anticipated to witness a 50% rise in individuals with a net worth of Rs. 258.3 crore (US$ 30 million) or more by 2028, making it the highest growth globally.