The Indian luxury car market is experiencing a significant surge due to rising HNIs, wealth, premiumisation and the robust demand for sports utility vehicles (SUVs), which contribute major sales numbers. Led by Mercedes-Benz and BMW, the luxury car market is now expanding beyond metros into Tier 2 and Tier 3 cities, with a growing market share. In recent times, there has been demand for electric luxury cars, and carmakers are bringing new models to increase their market share in the EV segment. The top markets are Delhi-NCR, followed by Mumbai and the southern states of India. The demand for used luxury cars is also gaining momentum and delivering good numbers to luxury car makers.
To increase its market share, Audi, the German luxury car manufacturer, recently launched the new Audi SQ8 in India, exemplifying balanced performance and precision engineering. The Audi SQ8 occupies a singular position in the Audi Q8 line-up and is available in India at an introductory price of Rs1,77,72,000 (ex-showroom). It includes 10 years of complimentary roadside assistance, along with attractive comprehensive maintenance and service packages. Former cricketer and commentator Ravi Shastri was also present and shared his experience. “The Audi SQ8 strengthens our high-performance SUV line-up in India by offering a compelling balance of power, everyday usability, and genuine, visceral performance. It is designed for customers who want a versatile luxury SUV that can be effortlessly comfortable during the week and truly exciting on the weekend. We are seeing growing enthusiasm for performance cars across India, particularly among our discerning, younger clientele, and the Audi SQ8 is a natural extension of our commitment to bringing the brand’s finest performance heritage to the Indian market,” said Balbir Singh Dhillon, Brand Director, Audi India.
A growing market
Currently, the market size of the luxury segment is about 50-odd thousand cars over the last 2 years. It still remains a small segment of the overall industry and makes up just over one per cent of the total 4.4 million passenger vehicles sold in India in 2025. Carmakers are hoping that in the coming years it will continue to grow, and they are positive about India and its growth story.
Talking about the Volkswagen Group: “We have been present in this country for almost two and a half decades. Some of you might know that one of our brands, Škoda Auto, has recently celebrated several major milestones, primarily centred around its 25th anniversary in India. We are offering across our brands almost more than 40 products locally produced, locally assembled, as well as fully built-up units, which we bring to this country,” said Piyush Arora, MD & CEO, Škoda Auto Volkswagen India. “It gives us an opportunity for future growth. We are investing heavily in our product development, and we will continue to do so to remain agile and relevant to the Indian market. In the domestic market, the Volkswagen Group put together all its brands, sold 70,000 cars, and exported 40,000 cars. So last year we saw a substantial amount of momentum, and I am confident that this is going to continue,” added Arora.
“This is the trust and the aspiration that we have with our customers. Also proud of my team that every third car that we sell in India, we sell to our existing customers. My team works day in and day out to make our customers feel happy. But this cannot happen only by giving services. We constantly engage with our customers,” explained Dhillon about buying behaviour. He further added: “Last year we did 700-plus physical events throughout the country with our customers, and attracted thousands of customers through our dealer partners. Also, it is important that whatever feedback we get from our customers is implemented. There’s a growing demand for our sports and performance cars. The Q drive that we continue and the experiential engagement that we have with our customers is testimony to our loyalty to the brand,” added Dhillon.
In 2025, the Indian luxury car market delivered decent growth, with Mercedes-Benz retaining its leadership position by selling 19,007 cars. BMW Group India followed with sales of 18,001 cars, and Jaguar Land Rover clocked 5,792 units. This growth was driven by demand from Indian customers for high-end SUVs and increasing sales of electric luxury cars. With the introduction of the SQ8, Audi India is expected to garner higher numbers.