Mercedes:Luxury vehicles continue to entice Indian purchasers, and the most recent fiscal year figures indicate some unexpected results. Although competition is still stiff, it’s evident that one manufacturer has entrenched itself at the number one position once again, beating international competitors in terms of quantity and growth.
Mercedes-Benz Retains Top Position Again
Mercedes-Benz was the unchallenged king of luxury in India during FY2025. The brand retained its top position with a total sales figure of 18,928 units. This was a 4% growth over last year, indicating that Indian consumers continue to opt for the three-pointed star when it comes to luxury cars.
BMW Holds onto Second Position with Steady Performance
BMW retained the second position with 15,995 units for the same duration. Parallel growth with Mercedes, BMW too experienced a 4% increase in sales. The consistent performance is a reflection of the brand’s steady presence and popularity in the Indian luxury space, albeit still behind Mercedes by a wide margin.
Jaguar Land Rover Posts Impressive Growth
Jaguar Land Rover might be third in terms of volume, but it captured the attention with a whopping 40% year-on-year increase. The company retailed 6,183 units during FY2025, becoming the quickest-growing luxury automobile brand in India. This is an abrupt jump indicating growing interest from customers looking for a mix of heritage and innovation.
Audi Struggles Amid Sales Decline
Audi India settled for fourth position with 5,993 units sold. The company, however, posted a 15% fall in sales against last year’s volume. The dip marks difficulties in sustaining customers’ interest or even rollout delays of fresh models that might have hit market performance.
Volvo’s Worrisome Dip in Sales
Volvo India had sold 1,750 units and ranked fifth among the luxury players. But with an 18.6% decline in sales, there is increasing alarm for the brand. Even as the brand depends on its safety and Scandinavian heritage, declining numbers for Volvo indicate a mismatch with the demand of the times.
Luxury Segment Shows Modest Growth Overall
The overall luxury car sales in India for FY2025 were 48,849 units, which was a small growth of 0.55% compared to the same period last year. Although the segment didn’t increase meaningfully, the overall brands such as Mercedes-Benz and Jaguar Land Rover gave good performances. The facts prove that Indian buyers are still attracted to luxury, but brand loyalty and growth levels differ extensively.
Mercedes Still Reigns but Jaguar is the Star Performer
Though Mercedes-Benz retained leadership, Jaguar Land Rover’s sharp rise indicates shifting preferences among premium buyers. Audi and Volvo’s downward trends, meanwhile, suggest the need for strategic pivots. As FY2026 approaches, all eyes will be on how these brands adapt to evolving market dynamics.