Mercedes dominates overall, but BMW and Land Rover models see strong traction – SUVs continue to rule luxury space
Luxury car sales in India for 2025 reveal a clear trend – SUVs continue to dominate buyer preferences, while Mercedes-Benz maintains its leadership position in the segment. Based on retail sales data sourced from Vahan and Telangana Open Data portal, the top 20 best-selling luxury cars highlight a mix of traditional sedans and fast-growing premium SUVs.
Top 10 Best Selling Luxury Cars – 2025
Leading the charts is Mercedes E-Class with 4,117 units, reaffirming its popularity among buyers looking for a comfortable luxury sedan. It is followed by Mercedes GLE (2,900 units) and BMW iX1 (2,786 units), indicating strong demand for both ICE and electric SUVs.
BMW X1 (2,734 units), Mercedes GLS (2,645 units) and Mercedes GLC (2,631 units) continue the trend of premium SUVs dominating the list. BMW 5 Series (2,534 units) remains the second-best-selling sedan, while Land Rover Defender (2,470 units) stands out as the most popular off-road luxury SUV. BMW 3 Series (2,328 units) also maintains steady demand, while BYD Sealion 7 (2,213 units) emerges as a surprise entrant, highlighting growing interest in EVs in the luxury segment.
SUVs vs Sedans Split
SUVs accounted for nearly three-fourths of total luxury car sales in the Top 20 list, clearly highlighting the segment’s dominance in India. With over 74% share, high-riding vehicles continue to be the preferred choice among luxury buyers, driven by road presence, practicality and evolving buyer preferences. Sedans, while still relevant, now contribute just around 26%, indicating a steady shift in demand towards SUVs even in the premium space.
SUVs Drive Volume, Sedans Hold Ground
Out of the top 20 models, a majority are SUVs, clearly showing the shift in buyer preference towards high-riding vehicles. Models like BMW X5 (2,053 units), Mercedes GLA (1,848 units), Audi Q3 (1,631 units) and BMW X7 (1,536 units) continue to contribute significant volumes.
However, sedans still hold relevance, with Mercedes C-Class (1,654 units) and Audi A4 (1,140 units) finding consistent buyers. This indicates that while SUVs dominate, there is still a steady demand for traditional luxury sedans.
Brand-Wise Performance
Mercedes-Benz leads the luxury car market with total retail sales of 19,282 units in 2025. Its portfolio sees strong contributions from E-Class, GLE, GLS and GLC, covering both sedan and SUV segments effectively.
BMW follows closely with 17,730 units, driven by high demand for models like iX1, X1, 5 Series and 3 Series. Notably, BMW’s EV lineup, including iX1 and i7, is also gaining traction.
Jaguar Land Rover registers 5,979 units, with Defender alone contributing 2,470 units, making it the brand’s best-seller by a large margin. Audi records 4,777 units, led by Q3 (1,631 units) and A4 (1,140 units), while its higher-end models see relatively lower volumes.
Among newer entrants, BYD has managed 2,527 units, largely driven by Sealion 7 (2,213 units), highlighting strong early acceptance of premium EVs. Volvo clocks 1,736 units, with XC60 (786 units) and XC90 (489 units) leading its portfolio. Tesla, with limited presence, records 226 units, all coming from Model Y.
What It Means
The 2025 luxury car sales data reinforces a few clear trends. SUVs are now the backbone of the luxury market in India, contributing the majority of volumes. At the same time, EV adoption is gradually picking up, with models like BMW iX1 and BYD Sealion 7 making a strong impact.
Mercedes-Benz continues to lead thanks to its wide portfolio, while BMW is closing the gap with a strong mix of ICE and EV offerings. Going forward, increased competition in electric luxury vehicles and new SUV launches are expected to further reshape this segment.
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