Despite 870,000 millionaire households and soaring wealth, India's luxury car sales remain stuck at 1% due to heavy taxation, cultural savings preferences, and prioritization of property and gold over depreciating automotive assets.
01 Dec 2025 | 4188 Views | By Prerna Lidhoo
India is richer than ever 8.7 lakh millionaire households, booming markets, billion-dollar homes, and weddings worth crores. Yet luxury cars make up just 1% of all passenger vehicles sold. Why is a country bursting with wealth still hesitant to buy luxury wheels?
In this episode of Autocar Professional’s POV, ...
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India is richer than ever 8.7 lakh millionaire households, booming markets, billion-dollar homes, and weddings worth crores. Yet luxury cars make up just 1% of all passenger vehicles sold. Why is a country bursting with wealth still hesitant to buy luxury wheels?
In this episode of Autocar Professional’s POV, we break down the paradox of India’s luxury car market and explore the forces shaping its slow growth despite high aspiration.
What we cover in this explainer:
From depreciation worries to road taxes to shifting consumer psychology—here’s the full picture of why luxury cars remain rare on Indian roads, and what could finally unlock mass-market luxury adoption.
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