The adoption of electric vehicles is growing in the Indian market. Previously, consumers did not favor these cars due to range and charging infrastructure issues, but now they are becoming more sought after in the premium segment. If the choice of luxury car buyers was previously limited to gasoline models, there is now a growing popularity of electric vehicles (EVs).
When choosing a vehicle in the luxury segment, brand, design, and premium features remain priorities, but the type of powertrain—whether gasoline, hybrid, or electric—is also important. This is evidenced by the increase in the production of electric vehicles compared to initial models in the premium segment.
Nevertheless, this does not mean that the demand for gasoline cars has disappeared. According to statistical data, the gasoline engine remains the best-selling powertrain in the luxury car market. However, electric vehicles are rapidly gaining their niche, and hybrid cars are viewed by consumers as a practical alternative.
According to vehicle registration data, 26,688 cars were registered in the Indian luxury segment in the first half of the 2026-27 fiscal year, representing a sales increase of approximately 4% compared to the same period last year. There is an acceleration in the sales of electric vehicles in the luxury segment. BMW sold 2,359 electric vehicles from January to June 2026.
According to the company, the annual growth of its EVs reached 78%, and the share of electric vehicles in BMW's total sales reached 26%. Mercedes-Benz India reported that in the second quarter of 2026, the share of EVs in retail sales reached 14%.
These figures clearly demonstrate the growing popularity of electric powertrains among luxury car buyers, especially for city models. Although EV sales are growing rapidly, gasoline maintains a dominant position in the luxury car market. According to Mercedes-Benz, sales in the company's high-end portfolio increased by more than 20% in the first half of 2026. Simultaneously, the AMG Business division of Mercedes-Benz recorded a 50% growth, indicating that for lovers of expensive high-performance cars, not only electrification but also engine response and driving experience are important.
Avnit Singh Kohli, founder and managing director of AutoBest Imperio, notes that luxury car buyers are more open to electric vehicles because they see in them a combination of technology, comfort, and daily convenience. Nevertheless, Avnit also acknowledges that consumers who prefer traditional engines continue to choose gasoline cars. Hybrids, meanwhile, are becoming an option for those who wish to transition to electrification but are not ready to completely change their driving habits.