While budget buyers are holding back, the wealthy pressure of India is the sales of luxury car in FY25 | Einsmark news

Rising food inflation and falling wages have urged urban consumers to hold back their car purchase plans in FY25, as evidenced by subdued sales in the mass market segment. However, the wealthy class continued with their luxury shopping, with the demand for premium cars staying strong during the financial year. Luxury car manufacturers sold 51,406 units in FY25, with a 3% year-on-year (YOY) increase (YOY) compared to 49,862 units in FY24, and a record for the highest sales in any financial year. This increase has come, even when the Indian economy struggled, with growth expected a low four -year low. Mercedes-Benz India led the market with 18,928 units sold, which were its best fiscal performance. The company’s top luxurious segment-including models such as the S-Class, Maybach and AMG-have gained a 34% growth. In addition, electric vehicles (EVs) sales increased by 51%, with EVs accounting for 7% of total sales. The AMG G 63, Mercedes-Maybach Night Series, and the new G 580 with EQ technology raised overwhelming demand, with the waiting period in some cases ranging up to 1 year. The EV version of the Maybach also saw strong question. BMW India secured second position with 15.810 units sold, a 5% increase of 14,562 units in FY24. Jaguar Land Rover (JLR) has experienced a 40% growth, with 6 183 units and the excess Audi to become the third largest luxury car seller in India. Previously, in the 2019 calendar year, JLR Audi briefly inundated with the sales of 5,000 units compared to Audi’s 4.594, but Audi regained its third place in 2020. The Land Rover defender was the best-selling model, with a 90% increase in sales. Meanwhile, the locally composite Range Rover and Range Rover Sports also had a strong growth of 72% and 42% respectively. Localization efforts and improved product availability have given a significant momentum. In May 2024, JLR started gathering four models at the Pune facility. Lexus, the luxury vehicle division of Japanese car manufacturer Toyota Motor Corporation, reported a strong 19% growth in FY25. In March 2025, Lexus India recorded its highest monthly sales, mainly by the NX and RX SUVs. Audi and Volvo hit the brakes in FY25, while Audi, the German luxury car manufacturer, dropped sales by 15% to 5.990 units in India during the FY25, influenced by the supply chain restrictions. Volvo faced a similar challenge, with sales dropping 51% yoy to 1.750 units in FY25. The Swedish luxury car manufacturer, especially known for its emphasis on safety, is struggling to maintain market share amid tough competition from other global brands. The company has dropped 70,737 cars sold in March 2025 by 10% compared to the same period last year. Disclaimer: The views and recommendations given in this article are those of individual analysts. This does not represent the views of coin. We advise investors to check with certified experts before making investment decisions. First published: 14 Apr 2025, 02:14 PM IST