India’s rising wealthy population offers great growth opportunities for the luxury industry, but scaling here isn’t easy. While most categories struggle with structural hurdles, the luxury auto segment has raced ahead. What can the luxury industry learn from its success?
To succeed [in India], brands need to embrace several regional language preferences and respect cultural diversity
Santosh Iyer, MD & CEO of Mercedes-Benz India
India’s strong and consistent economic growth has fueled an unprecedented rise in its wealthy population, making it a strategic growth engine for the global luxury industry, especially at a time when demand in more established markets is cooling. Nevertheless, while the country’s rising appetite for premiumization presents great opportunities, some structural challenges—such as limited suitable retail infrastructure, high import duties, and local taxes—are limiting scalability. Many foreign luxury brands in categories such as apparel, footwear, jewelry, and handbags are still struggling to scale in proportion with the rising demand. But there is one sector that has overcome these challenges to race ahead: luxury cars.
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In India, luxury automobiles face one of the highest taxes and import duties in the world. India’s urban road conditions still remain a challenge for luxury car owners. Yet, strong demand and adaptive supply are driving accelerated growth in the luxury car segment. At Mercedes-Benz India, the top-end luxury segment grew 34% year-on-year in FY-25 and accounted for over 25% of total sales. Porsche’s double-digit growth in India was also driven by its top-end models in the Cayenne and Macan series—priced approximately between €95,500 and €207,000 in India. According to BMW, every fifth car it sold in India in 2024 was a top-of-the-range model.
So, what is the luxury car industry doing right in India? What can other luxury categories learn from its localization strategies? In our in-depth report, we find answers from the leaders shaping India’s luxury auto market boom.
Hyper-personalization is Key to India’s Diverse Consumers
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