Audi Expects India's Luxury Car Sales Set to Hit Record 58,000 Units in 2026 

India's luxury passenger vehicle market is expected to reach a record 58,000 units in 2026, an increase of nearly 12% from around 52,000 units last year, as rising wealth and growing demand beyond major cities create opportunities for premium carmakers, according to Audi India.

Speaking at the launch of the third-generation Audi Q3 on Friday, Balbir Singh Dhillon, Brand Director, Audi India, said the luxury car market had nearly tripled in size since 2020, reflecting the changing profile of Indian customers and the expansion of affluent households beyond metropolitan markets.

"We will also sell about 58,000 cars this year, which is the highest number of cars ever in the luxury space," Dhillon said.

He added that wealth creation was increasingly spreading beyond major cities, creating opportunities for luxury carmakers to reach customers in Tier 2 and Tier 3 markets.

The broader Indian passenger vehicle market is also expected to cross the five-million-unit mark in 2026, potentially reaching 5.1 million to 5.2 million units, Dhillon said, compared with more than 4.5 million units last year.

Despite its growth, luxury vehicles continue to account for only a small proportion of India's passenger vehicle market. Even at the projected 58,000 units, the segment would represent approximately 1.1% of the overall market, highlighting the limited penetration of luxury cars in the country.

To capitalise on the opportunity, Audi plans to substantially expand its retail presence, particularly in smaller cities. The company intends to increase its showroom network from 28 currently to around 40 by the end of 2027 and more than 50 by 2030.

"We will also expand to Tier 2, Tier 3 cities because we want to be closer to our customers," Dhillon said.

The planned expansion would increase Audi's showroom network by more than 40% by the end of next year and nearly double its current presence by the end of the decade.

The network expansion will be supported by a broader product portfolio as Audi seeks to regain market share in India's competitive luxury vehicle segment.

"Our next phase of growth is focused on a strong product offensive," Dhillon said, adding that the company plans three more product launches, after the launch of all new Q3.

Audi aims to double its share of India's luxury car market over the next three to five years through a combination of new models, a wider retail network and greater customer engagement.

The expansion comes as Audi looks to reverse a decline in its India business. Its retail sales fell to 4,510 units in 2025 from 5,816 units in 2024, a decline of 22.5%, following a 26.6% fall in the preceding year.

The company is banking on the third-generation Q3, followed by the A5 sedan and flagship Q9 SUV, to support its recovery. The new Q3 is locally assembled at Škoda Auto Volkswagen India's Chhatrapati Sambhajinagar manufacturing facility in Maharashtra.

Dhillon also highlighted customer retention as an important part of the company's growth strategy, saying one in every three Audis sold in India goes to an existing customer.

"For us, the opportunity is not just to sell more cars. It's to make Audi relevant to more customers in a bigger part of India while delivering the best possible customer experience," he said.

Meanwhile, Piyush Arora, Managing Director and CEO of Škoda Auto Volkswagen India, said the Q3's local production reinforced India's importance to the Volkswagen Group, both as a consumer market and a manufacturing and engineering hub.