In 2024, the luxury electric vehicle (EV) market in India has reached a landmark stage with a slight but significant growth of 6.7%. The Federation of Automobile Dealers Associations (Fada) says that this new market is transforming the auto industry while luxury OEMs also face challenges.
A Glimpse into the Numbers
Luxury EV sales reached 2,809 units in 2024 from 2,633 units in last year. The slow-growing, but positive growth is an indication of rising consumer confidence and demand for electric vehicles. There were 2 market leaders Tata Motors 61,496 unit sales followed by JSW MG Motors 21,484 units.
But luxury has become a hot market as new launches and increased customer acquisition gave momentum to this segment.
Mercedes Benz: The Star Performer
Mercedes Benz India was the leading player in the luxury EV space. For a whopping 82% increase in sales of EVs, the German manufacturer introduced four new EVs which was one of the key factors of its success.
The success of the deal was proudly shared by Santosh Iyer, MD and CEO, Mercedes Benz India:
“Our battery EV expansion (94%) has been far ahead of the luxury battery electric vehicle (BEV) segment as we register record-breaking annual BEV sales in India”.
This achievement is the proof of Mercedes Benz’s innovation and customer-centric mindset, and is a benchmark among competitors.
A Tale of Contrasts
Mercedes Benz was not all rainbows and sunshine for all luxury OEMs. Sales of EV in India were drastically reduced by 22% by Volvo Cars India. Other marque Audi saw flat sales, and that’s a good sign in the luxury EV market.
Jyoti Malhotra, Managing Director of Volvo Cars India, was sanguine by the dip:
“Though the Indian EV market had slowdown in 2024, Volvo Car India is still determined to electrify.”
And this point points to Volvo’s long-term aspirations despite near-term challenges.
BMW’s Record-Breaking Year
Yet another dynasty for 2024, the sales of BMW Group India in this year were record-breaking with 15,721 vehicles sold — a healthy 11% growth on year-on-year basis. BMW iX and i7 were popular winners that proved BMW’s commitment to high-tech design.
Vikram Pawah, President and CEO of BMW Group India, credits their strong retail strategies and great customer experiences for the success.
Challenges in the Fast Lane
But even with this overall positive trend, there were some issues in the luxury EV space. The first half of the year was slow as elections uncertainty and a heat wave of unprecedented proportions affected consumer spending. And then there was the question of credibility, in that the differences between Vahan (India’s vehicle registration database) and OEM-admitted sales data.
But leaders aren’t discouraged and predict a brighter future as EVs take off.
Gearing Up for 2025
The road ahead looks promising. Eight new models are set for 2025 at Mercedes Benz, including the oh-so-popular G Electric and EQS 450 SUV. For Volvo Car India, in the same vein, next generation EVs will be available and this is definitely going to be an adventurous year for the luxury EV segment.
