Mercedes-Benz, BMW and Audi — brands often linked with success — are now attracting more buyers from high-paying salaried jobs and start-up circles. In the last five years, their share of customers from these groups has nearly doubled, showing that luxury car ownership is no longer limited to traditional business owners.
This shift reflects stronger company earnings and higher payouts from employee stock ownership plans (ESOPs). India’s steady economic growth and rising incomes are also expanding the pool of potential luxury buyers.
More professionals choosing premium cars
Executives from these top luxury brands said that they are witnessing strong interest from salaried professionals, doctors, lawyers, chartered accountants and senior managers in start-ups.
Santosh Iyer, Managing Director of Mercedes-Benz India, said, “Salaried professionals and start-up founders now make up about 15% of our sales, compared to single-digit levels five years ago.” He added that wealth creation is spreading beyond company founders, with senior professionals now driving luxury spending.
Together, Mercedes-Benz, BMW and Audi control almost 85% of India’s luxury car market.
Growing number of wealthy households
According to the latest Mercedes-Benz Hurun India Wealth Report, dollar-millionaire households in India have grown by 90% in the last four years. Today, the country has around 8.71 lakh households with a net worth above Rs 8.7 crore, widening the base of potential luxury car buyers.
Luxury car market expands
Sales of luxury vehicles nearly doubled in the last calendar year, rising to 51,000 units from 28,600 units in 2020.
Audi India says professionals and start-up founders now account for about 18% of its sales, compared to 8% five years ago. At BMW India, this share is even higher at around 30%.
Balbir Singh Dhillon, head of Audi India, said income growth and a major change in consumer outlook have boosted the luxury segment. “Indian buyers today prefer experiences over savings. They follow global trends and want to enjoy owning these cars,” he said.
A clear upgrade path
Dhillon also noted that the premium car space has grown significantly in recent years. Earlier, buyers had only two broad choices — mass-market cars around Rs 20 lakh and luxury cars starting at Rs 50 lakh. With many new models now priced between Rs 20 lakh and Rs 50 lakh, more customers are choosing to upgrade to luxury brands.
Hardeep Singh Brar, President of BMW Group India, said that the number of salaried professionals and young entrepreneurs choosing BMW has grown strongly, recording double-digit increases over the past five years.
Which car type suits you? A quick, simple guide
TEAM AUTO | THE GOAN
1. Hatchback
Small cars with a rear door that opens upwards. Easy to drive and park. Example: Maruti Suzuki Swift.
2. Sedan (Saloon)
Cars with a separate boot. More space and comfort. Example: Honda City.
3. SUV (Sport Utility Vehicle)
Bigger vehicles with higher seating. Good for rough roads. Example: Hyundai Creta.
4. MUV/MPV (Multi-Utility/People Carrier)
Made to carry more people. Good for families. Example: Toyota Innova.
5. Coupe
Two-door stylish cars, usually sporty.
6. Convertible
Cars with roofs that can fold or open.
7. Estate (Station Wagon)
Similar to a sedan but with a longer rear for extra luggage space.
8. Pick-up truck
Cars with an open cargo bed at the back.
9. Sports car
Fast, powerful cars designed for performance.
