The share of luxury vehicles in total car sales in the Indian market is set to double by the turn of the decade driven by demand from a rising number of young, rich and aspirational buyers, a top executive at BMW told ET. India was the second fastest growing market last quarter, after Northern Europe, for the German automaker globally despite geopolitical uncertainties, Ritu Chandy, Head of Sales (Region Asia-Pacific, Eastern Europe, Middle East, Africa) said, adding, the company expects the momentum here to continue mid-term. Chandy said the trajectory is “pretty much inevitable,” citing a confluence of rising affluency, infrastructure investment, and a generational shift in spending attitudes. “(The doubling of share depends on) how quickly the (EU) FTA comes in, how quickly the investments that we and other brands are making (comes). (But) as long as the affluency continues, I think 5 per cent (share of luxury in total car sales) is definitely not an unexpected number”, Chandy said. The share of luxury vehicle in new car sales in Europe stands at about 20 per cent. you know these numbers very well. In Korea too, the share of luxury vehicles is in double digits. Chandy said, “I think India as a market, especially with the growth in terms of consumers, their willingness to spend, their willingness to be part of brands, what it means to associate yourself with a brand beyond just the drive experience, drive dynamics…I think definitely 5 per cent is a very clear ambition.” Hardeep Singh Brar, President & CEO, BMW India explained that when near-premium price points of Rs 50 lakh and above are factored in, the (luxury vehicle) segment is already closer to 2.5 per cent. “People are moving up the price point,” he said, adding that Gen Z buyers in particular show a far stronger propensity for luxury consumption than previous generations, “the next generation is all about premiumisation”. To be sure, the average age of the BMW buyer in India at 42 years is amongst the lowest globally. In all, there are several broad demand-side tailwinds, Chandy elaborated. In addition to rapid urban infrastructure development, the return of Indian professionals from overseas, and a post-COVID surge in aspirational spending across luxury categories from fine dining to premium real estate. “The definition of luxury is no longer just about driving a big car,” she said. “It’s about what a brand stands for — and what affiliating with it means for the consumer.” BMW posted its best first quarter in 13 years in India in Q1 2026, claiming the segment lead (in terms of registrations) for the first time since 2013, the company said. BMW India reported a growth of 17 per cent to sell 4,567 vehicles (BMW and MINI) in the first quarter of the ongoing financial year. Chandy attributed the performance to the brand’s flexible drivetrain strategy — offering petrol, diesel, plug-in hybrid, and battery electric variants across the same model lines — which has allowed it to sidestep the polarisation that has hampered some competitors. The long-awaited EU-India Free Trade Agreement too is seen as a key near-term catalyst. The deal is expected to progressively dismantle India’s steep import tariff barriers, making a wider range of niche and high-performance models — including the full M lineup more price-competitive. BMW group has so far invested ₹1,250 crore in the Indian market. The company is in the process of investing further resources in strengthening its digital infrastructure and expanding its distribution network (along with dealer partners) to grow its footprint in the country. Go to Source
