India's high-net-worth individuals are opting for luxury electric cars to make a ‘responsible’ statement

The symbols of wealth are evolving. Where once a throaty V8 or a chauffeur-driven limousine marked status, today, it’s the quiet hum of an electric motor. Luxury in cars is no longer measured by speed and leather upholstery but sustainability, design, and the promise of a better future. The luxury electric vehicle (EV) segment grew 11% in the first half of CY2025 as against just 6% in the same period last year. At the heart of this exorbitant surge are Gen Z and millennial buyers. “The luxury electric segment in India is seeing strong interest from young, successful people. They are environmentally conscious and looking to connect with a brand committedto sustainability,” says Hardeep Singh Brar, President, BMW India. Around 65% of BMW and MINI EV customers are below 45 years. In the case of BMW iX1 Long Wheelbase, the average age of the customer is even lower (33% are below 39). In August, BMW India became the first luxury carmaker to sell 5,000 electric cars. The rise of young entrepreneurs and a strong economy are also driving the luxury electric car market, says Balbir Singh Dhillon, Head of Audi India. “These buyers are not only younger but also more digitally connected. They actively engage with online research, use configuration tools extensively and show a strong interest in home charging solutions, reflecting a tech-savvy and forward-looking mindset compared to traditional buyers of luxury cars,” says Dhillon. At Audi India, the average age of EV buyers is 46. At present, Audi has four electric car models in India—RS e-tron GT, e-tron GT, Q8 e-tron Sportback and Q8 e-tron. The company plans to expand its EV portfolio by 50% till 2030. For market leader Mercedes-Benz, which commands more than 41% of the luxury car market, the customer profile has evolved due to newer requirements, popular culture and global trends. “Our EV customers are highly influenced by eco-consciousness,” says Santosh Iyer, Managing Director and CEO, Mercedes-Benz India. In CY24, the German automaker sold 952 luxury EVs as against 516 units in the same period last year, as per data from Vahan Dashboard. “We are also getting customers who view luxury through the lens of hyper-personalisation, not just in colours and trim, but the entire digital ecosystem. The artificial intelligence that learns from the car appeals to a generation that expects their luxury vehicle to be as smart and personalised as their smartphone,” says Iyer. The carmaker has electric models in India. An Eco-conscious Choice Another reason for the pick-up in luxury EV sales is environmental awareness. “Customers want to make an active contribution in reducing the carbon footprint. When great product attributes meet green solutions, the proposition becomes even more attractive. Young achievers, especially, are very conscious about sustainable choices,” says BMW’s Brar. The share of EVs in BMW India’s portfolio has risen from 3% to 18% in the last three years. According to Mercedes-Benz’s Iyer, electric mobility in the luxury segment is all about eco-sensitivity and value. “Initially, BEV purchase was a status symbol and a differentiator. With increasing penetration, it’s more about intelligent choice. India’s favourable taxation has created interesting dynamics. BEVs are more cost-effective. So, customers are making rational decisions alongside aspirational ones,” says Iyer. While high and ultra-high networth individuals don’t want to hold back spending, they also want to be viewed as responsible and progressive. “The idea of ‘guilt-free opulence’ is gaining traction. We believe it will become a significant driver of luxury consumption in India. Customers want indulgence but also want their choices to reflect responsibility,” says Audi’s Dhillon. BMW’s Brar says luxury car buyers are not just looking at a price tag to stand out. “They want something personal and authentic, with a story that incites emotions. EV customers are not looking for just an electric powertrain but also a brand genuinely committed to sustainability. Beyond the technical aspects and charging modules, they are also interested in aspects such as how the vehicle was produced, are the materials sustainable, what are the other measures through which BMW is contributing to CO2 reduction?” says Brar. Wealth of Choices The trend is not without challenges. Some luxury carmakers are backing away from targets due to a slump in EV sales in the US and Europe owing to global geopolitical uncertainties. Earlier this month, Porsche AG, a subsidiary of Volkswagen Group, delayed plans to launch all-electric models while extending the production of internal combustion engine and hybrid models. Bentley and Lamborghini have also delayed plans to launch EV models amidst weak demand and tariff uncertainties. Despite this, luxury carmakers are optimistic about the demand for EVs in India. For example, despite extending its 100% electrification target from 2030 to 2035, Mercedes-Benz is expecting EVs to make up 25% of its India portfolio. “The trajectory of luxury BEVs is promising. Mercedes-Benz is strategically focussed and tactically flexible regarding the pace of BEV transition globally. Customers and market conditions will determine the pace of this transition. The key enablers will be charging infrastructure development, customer experience and value addition. Government policy consistency will also play a pivotal role in incentivising BEVs,” says Iyer. According to BMW’s Brar, luxury electric cars will be not limited to urban markets going ahead. “Prospects from emerging markets are strengthening quickly in the medium to long-term. BMW and MINI dealerships have received many enquiries and bookings for the electric range from cities such as Chandigarh, Lucknow, and Kochi,” says Brar. @astha_oriel

India's high-net-worth individuals are opting for luxury electric cars to make a ‘responsible’ statement

The country’s car market is undergoing a transformation as high-net-worth individuals opt for luxury electric cars to make a ‘responsible’ statement.