Luxury EVs Gain Ground: 11% of High-End Car Sales in India Were Electric in 2025, Says Mercedes-Benz India MD

Electric vehicles (EVs) accounted for 11% of all luxury cars sold in India between January and May 2025, up from 7% a year earlier, signaling growing acceptance of high-end EVs in the country’s premium automobile segment, Mercedes-Benz India said on Wednesday.

Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, said the company’s own EV sales rose 76% during the five months, outpacing the overall luxury EV market, which grew 66% year-on-year based on Vahan registration data.

“Luxury EV adoption is accelerating, with affluent buyers showing strong interest in top-end electrified models,” Iyer said, noting that the company’s electric offerings—including the EQS SUV and EQE—are priced above ₹1.5 crore and have seen robust traction.

Mercedes-Benz India does not offer entry-level electric vehicles (EVs), making its performance in the high-end EV space particularly notable. Iyer attributed this growth to increasing awareness, better charging infrastructure, and favorable product positioning. The company has also observed greater interest due to a ₹1 crore price differential between ICE and EV versions of specific models, driven by policy-linked benefits.

“In the luxury segment, EV penetration is at 11%, compared to around 4% in the mass market. It may not be explosive yet, but the month-on-month trajectory is strong,” Iyer said.

Despite a challenging macroeconomic environment, including currency volatility, Iyer expects electric vehicles (EVs) to post double-digit growth in 2025, even if volumes stabilize in the coming months. Mercedes-Benz India remains focused on premium electric vehicles (EVs) and expects continued growth as customer confidence builds and infrastructure expands. 

“Even though we don’t operate at the lower end, we’re seeing strong momentum in the top-tier segment,” Iyer added. India’s overall luxury car market is projected to reach 80,000–90,000 units annually by 2030, according to industry estimates, with EVs expected to account for a growing share of that total.