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The demand for luxury electric cars in India is increasing. Now the rich people of the country are liking more clean energy-powered electric cars than petrol and diesel vehicles. According to Vahan portal data, where EV was 7% in luxury cars from January to May 2024, it increased to 11% in the same period in 2025. That is, EV luxury segment gained 66% in just one year.
The demand for EV has also increased considerably in the sale of old luxury cars. About 19% of the old luxury cars sold so far in 2025 are electric cars, while the same figure was less than 5% last year. New electric cars of companies like Mercedes-Benz, BMW and Audi are a big reason behind this.
This is how sales increased
Between January-May 2024, Lagji EV sales was 1,223 units, which increased to 2,027 units in 2025. The total sales of luxury cars in the entire 2024 were around 51,000 units, which was 48,000 units in 2023. The number is expected to reach 60,000 in 2025. So far in 2025, the luxury car market has increased by 5%, while the EV segment has increased a tremendous growth of 66%.
So increased demand
Santosh Iyer, CEO of Mercedes Benz India, said in an interview, “I have been running EV for the last two years and I do not feel any shortage of petrol-diesel car.” He said that between January and May 2025, the luxury EV segment has increased by 66%, and the sales of Mercedes-Benz increased by 73%. According to him, the government is getting tax and road tax exemption, due to which EV prices have been reduced to petrol and diesel cars or slightly reduced. This is the reason why people are now preferring to buy EV.
New factories and launching will increase demand
Jaguar Land Rover will start its largest foreign factory in Ranipet in Tamil Nadu by the beginning of 2026, which will have an annual production capacity of 30,000 units. At the same time, Tesla is also preparing for entry in India. This will further strengthen the luxury EV segment.
Source: www.tv9hindi.com
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