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Luxury automakers make a comeback at Auto Expo 2025 with an electrifying lineup
- While the overall segment grew, it was a mixed show, with some automakers driving growth while others struggled to retain volumes.
After skipping the 2023 edition, luxury automakers Mercedes Benz and BMW have returned to the Auto Expo 2025, now rebranded as the Bharat Mobility Global Expo.
Both brands are leveraging the platform to showcase their cutting-edge models and drum up consumer sentiment after a year of strong sales, even as the overall passenger car market slowed.
The luxury car market in India is estimated to have closed 2024 with sales of 51,000 units, representing a 6% year-on-year growth. While the overall segment grew, it was a mixed show, with some automakers driving growth while others struggled to retain volumes.
Mercedes Benz, India’s largest luxury carmaker, saw a robust 12.4% growth in 2024, delivering 19,565 vehicles. BMW, its closest rival, grew by 12.8%, selling 15,012 units. However, Audi continued to face challenges, with a sharp 26.7% decline in sales, amounting to just 5,816 units.
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Jaguar Land Rover (JLR) stood out with stellar growth rates of 35%, while Japanese luxury carmaker Lexus saw sales grow 13.8% year-on-year, according to industry estimates, although their volumes remain much smaller. Volvo and MINI, on the other hand, reported double-digit declines of 19.6% and 18.4%.
Mercedes Benz is showcasing three major electric models: the Concept CLA, the EQS Maybach SUV, and the G-Class Electric. These unveilings reflect the brand’s global push toward electrification under its “Ambition 2039” strategy.
Santosh Iyer, managing director and chief executive of Mercedes Benz India, said that the brand's participation in the Expo is an opportunity to boost sentiment rather than directly impact sales. Besides, it has reduced the size of its pavilion to about half of its earlier displays, favouring cost efficiency and a pragmatic approach. Showrooms have also adopted smaller, boutique formats, he said.
“Focus has shifted to outdoor demonstrations and interactive experiences,” Iyer told Mint.
Growth in top-end portfolio
Mercedes Benz grew its top-end vehicle portfolio by 30%, the strongest growth it saw in any category, attesting to the brand's aspirational value climbing higher. The brand’s top-end vehicle portfolio begins at a price range of nearly ₹1.5 crore.
“This year, we also plan to add 20 touchpoints, enhancing our footprint across India. We are entering 2025 with an order bank of over 2,000 cars, which reflects strong demand and positive sentiment for the brand,” Iyer said.
Interestingly, 2025 is also the year in which mass-market brands such as Mahindra & Mahindra and MG Motor India are reaching into the luxury car market, but “legacy” luxury OEMs seem unperturbed.
“While mass-market manufacturers are moving into higher price brackets, luxury remains defined by brand, product quality, and customer experience, not just price. We see minimal overlap between our customer base and those of premium mass-market brands,” he said.
Rajan Amba, managing director, Jaguar Land Rover India, told Mint that the luxury car market has witnessed consistent growth at the top end of the luxury segment where the brand operates. “And we expect it to grow further because of the steady demand,” he said.
“The growth is driven by India's economic growth, which fuels demand for luxury goods. Growing disposable incomes enable consumers to indulge in premium luxury products. Expanding high net-worth individual population drives demand for luxury consumables including automobiles,” Amba said.
Jaguar's outperformance was based on a “combination of strong brand equity, world class product portfolio with a special focus on special editions and delivery of exceptional client experience”, he said, in addition to the announcement of the local manufacturing of Range Rover and Range Rover Sport in India.
BMW Group India is also putting up a comprehensive showcase of vehicles across cars and two-wheelers from Motorrad: Including the new BMW X3, MINI Cooper S John Cooper Works Pack, BMW R 1300 GS Adventure, and the new BMW S 1000 RR. The company is also showcasing an expansive electric lineup, including the all-electric BMW i7, X7, and the MINI Countryman.
As the curtains rise on Auto Expo 2025, all eyes are on the electrified future of luxury mobility.
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Business NewsAuto NewsLuxury automakers make a comeback at Auto Expo 2025 with an electrifying lineup
First Published:16 Jan 2025, 10:01 PM IST
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