Sustainable Luxury – An upgrade in status and experience for affluent customers

Of the 25,075 luxury cars sold from January to August 2025, 3,049 were EVs, making up 10.8% of all luxury cars sold in India. In comparison, 2,869 luxury EVs were sold in all of CY 2024 [dominated mainly by BMW India – 1227 and Mercedes-Benz – 954], accounting for 7.2% of the luxury car market. This year, Mercedes has already sold 811 units of luxury EVs as of August 2025, up from 495 during January to August 2024, registering a 63.8% growth during the period.

Source: EVreporter Intelligence based on Combined Vahan numbers for Mercedes-Benz, Audi, BMW, Jaguar, Porsche, Volvo, Rolls-Royce.

Team EVreporter had an interaction with Brendon Sissing [Vice President, Sales and Marketing, Mercedes-Benz India] to discuss the driving factors behind the growth in the segment and their outlook for the near future.

Mercedes-Benz India has achieved a strong 63.8% YoY growth in EV sales [Jan-Aug Vahan data]. What is your assessment of the current momentum and health of India’s luxury EV market?

The Indian luxury EV market is demonstrating strong momentum, as evidenced by Mercedes-Benz India’s outstanding 157% Y-o-Y Q1 FY 25. Penetration in this segment has doubled from the previous year, now stands at 8%, showing robust acceptance among luxury buyers. This progress is being driven by both superior product offerings, such as segment-leading range and fast-growing availability of models, and the increasingly positive sentiment towards electrification.

While infrastructure is still evolving, the Indian luxury car buyer is clearly becoming more comfortable with the transition to electric, especially for exclusive, top-end offerings.

EVs currently represent 10.8% of luxury cars sold in India this calendar year (till Aug 2025). How do you foresee this penetration rate evolving over the next couple of years? Are there any key inflection points that you anticipate?

Our EV portfolio has doubled year-over-year to 8% in Q1 FY 25. Going forward, this rate is expected to grow at a steady, rather than an exponential pace.

Key inflection points that could further accelerate adoption include the completion of the first full EV ownership cycle (building residual value confidence), continued new model launches across segments, harmonization of state and central government policies (GST, road tax), and further development of localized manufacturing. The overall outlook is optimistic, but the pace of this transformation will be gradual based on customers’ choice and the market conditions; however, at Mercedes-Benz, we remain strategically focused and tactically flexible.

What are the primary motivators influencing India’s luxury car buyers to transition to electric vehicles? Are these motivations distinct from the mass-market segment?

Luxury EV buyers are motivated by a blend of rational and emotional drivers. Beyond the total cost of ownership, factors like sustainability, access to advanced technology, the desire for exclusivity, and the status associated with being an early adopter play crucial roles.

Features such as the green number plate, intuitive in-car tech, and the prestige of driving the ‘future’ are valued more than just price or savings, setting luxury buyers apart from the more cost-driven mass segment. For many, environmental responsibility and making a statement are just as important as performance or convenience.

How does the ownership experience of a Mercedes-EQ vehicle integrate with and enhance the lifestyle and values of the modern Indian luxury consumer?

Owning a Mercedes-EQ seamlessly aligns with the values of India’s modern, affluent consumers. These vehicles integrate sustainability, digital convenience, and personalized luxury. The majority of owners enjoy the ease of at-home or office charging, while features like top real-world ranges, intuitive digital ecosystems, and exclusive aftersales experiences make EQ ownership a natural extension of a progressive, responsible lifestyle. The brand’s direct and transparent customer engagement further supports modern luxury expectations.

What are the core attributes of the Mercedes-EQ lineup that resonate strongly with Indian luxury car buyers?

Indian luxury buyers value the technological sophistication, superior build quality, and segment-leading driving range of Mercedes-EQ vehicles. Additional attributes that resonate are the strong brand legacy, security of local manufacturing, exclusive design language, and a customer journey that emphasizes both personalization and peace of mind.

Buyers see the EQ range as the most authentic expression of contemporary luxury.

How important is building customer confidence in a long-term resale value and how is Mercedes-Benz addressing this aspect?

Sustaining high residual value is crucial for customer confidence, especially among luxury buyers. Mercedes- Benz India’s transparent pricing strategy and ‘Retail of the Future’ model ensure price uniformity and minimize speculative resale fluctuations. As a result, Mercedes-Benz vehicles consistently hold a residual value advantage of about 5-7% after 3-4 years compared to competitors, validating both the brand’s approach and customer trust in long-term value.

Luxury cars are often seen as symbols of exclusivity and prestige. How does the shift towards EVs align with this traditional notion of luxury for your clientele?

The shift to EVs aligns fully with the evolving definition of luxury, which now includes sustainability, innovation, and advanced mobility without losing sight of exclusivity and prestige. For today’s discerning buyers, EVs are not just environmentally responsible choices; they represent the future of performance, design, and influence.

The Mercedes-EQ experience enhances a client’s sense of distinction, affirming that sustainable luxury is not a compromise, but an upgrade in status and experience.

This article was first published in EVreporter October 2025 magazine.

Also read: Mercedes-Benz expands BEV lineup | Reports best H1 sales in India