The Rise of Luxury EVs in India: A Deep Dive
The Current Landscape
As of August 2025, the luxury electric vehicle (EV) market in India is witnessing remarkable growth. Among the 25,075 luxury cars sold, 3,049 were EVs, which translates to 10.8% of total luxury car sales. This growth is particularly noteworthy compared to 2024, when luxury EVs accounted for only 7.2% of the market. Leading the charge, Mercedes-Benz has reported a staggering 63.8% increase in sales during this year, with 811 units sold—a notable rise from 495 in the same period last year.
Insights from Industry Leaders
To gain a clearer picture of this shifting landscape, Team EVreporter spoke with Brendon Sissing, Vice President of Sales and Marketing at Mercedes-Benz India. He provided valuable insights into the factors fueling growth in the luxury EV segment and shared forecasts for the near future.
Market Momentum and Health
Sissing emphasized that the Indian luxury EV market is gaining significant traction, with a 157% year-on-year growth in the first quarter of fiscal year 2025. The penetration rate for luxury EVs, which now stands at 8%, has doubled compared to the previous year, confirming robust acceptance among affluent buyers. The surge in sales is attributed to product innovation, such as longer driving ranges and faster charging capabilities, alongside an increasing societal shift towards electrification.
Future Trends in EV Penetration
Looking ahead, Sissing believes that the penetration of EVs will continue to rise but at a steadier pace rather than an exponential one. Key inflection points that could boost adoption include the establishment of a full EV ownership cycle, advances in government policies, and further localization of manufacturing. The optimistic outlook is tempered by a recognition that change will largely depend on consumer choices and prevailing market conditions.
Motivators for Luxury EV Buyers
When asked about what drives luxury consumers to switch to electric, Sissing outlined a blend of rational and emotional factors. Beyond cost of ownership, buyers are increasingly driven by sustainability, cutting-edge technology, and the allure of exclusivity attached to early adoption. Features like the green number plate and advanced in-car technology enhance the perception of status, setting luxury buyers apart from the cost-sensitive mass market.
Enhancing Ownership Experience
The ownership experience of Mercedes-EQ vehicles resonates deeply with India’s modern luxury clientele. Sissing highlighted that these vehicles embody sustainability while integrating digital conveniences and bespoke luxury elements. The ability to charge at home or office and enjoy top-tier digital ecosystems makes Mercedes-EQ ownership a seamless extension of a contemporary, responsible lifestyle.
Core Attributes of the Mercedes-EQ Lineup
Indian luxury buyers highly value the technological sophistication and superior build quality of Mercedes-EQ models. Other appealing attributes include local manufacturing security, an exclusive design language, and a customer journey focusing on personalization. For many buyers, the EQ range epitomizes the most authentic expression of modern luxury.
Building Customer Confidence
Sissing stressed the importance of maintaining high residual values for assuring customers about long-term investments. Mercedes-Benz India’s pricing strategy and transparency minimize speculation around resale values. The brand typically maintains about 5-7% higher residual values compared to competitors after three to four years, thus building trust and confidence among buyers.
Evolving Definition of Luxury
The shift towards electric vehicles aligns perfectly with the evolving definition of luxury, which now incorporates elements of sustainability, innovation, and advanced mobility, without sacrificing exclusivity. For discerning buyers, electric vehicles signify not merely responsible choices but also a forward-thinking approach to performance and design.
Mercedes-EQ enhances the sense of distinction for clients, reaffirming that sustainable luxury is an upgrade, not a compromise.
This article originally appeared in the EVreporter October 2025 magazine. For ongoing updates in the electric vehicle sector, consider subscribing to stay informed.