Don’t you feel bad for January at times? It is a month already nursing a week-long hangover and burdened with bizarre resolutions, greeted by confusing wishes like ‘Happy New Year’ and desperate pleas like ‘#PleaseBeGoodToMe’. None of the other 11 months carries such weight; they come and go without being judged. But not January. Just like the firstborns? Perhaps. Even among the non-hashtag generation, there is a sense that this month should fade in gently, rather than appearing with a sudden flip of the page.
We wish for a slow start, but as usual, January never fails to disappoint. First, the mailbox fills with year-end sales figures, quickly followed by price-hike announcements. Then, WhatsApp begins to ping with messages that start with ‘Happy New Year’ and end with ‘Please carry this press release’.
However, this January arrived with something extra. It wasn’t just the headlines about BYD overtaking Tesla or the debates over Venezuela’s oil reserves. This month also brought a clearer picture of the EV (electric vehicles) adoption story in India, particularly within the luxury segment.
According to various data, the premium and luxury EV market had been stuck at around 10 percent throughout 2023 and 2024. While EY’s analysis provides the macro view, data from the Federation of Automotive Dealers Association (FADA) reveals some more nuances. Beyond the usual mass-market suspects, two figures define the story of India’s high-end electric segment. While Tesla’s official entry added some buzz in the market, the growth shown by BMW is truly indicative of the current trend.
While 2025 ended with the highest-ever car sales of 18,001 units for BMW, with a 14 percent-plus growth, it also solidified the group’s leadership in the luxury electric segment. The brand is leading at both ends—iX1 at the entry segment and i7 at the top. With a YoY (year-over-year) growth of 200 percent, BMW delivered 3,753 EVs (BMW and MINI combined) in 2025. The EV share in BMW’s total sales has gone up to 21 percent, up from 8 percent last year. The iX1 was the highest-selling EV not only for the company, but also for the premium EV segment in India.
Vahan data offers two further insights: Porsche’s numbers are in the red, while Rolls-Royce is firmly in the green. For Rolls-Royce, electrification is an interesting path as it goes with the image they have been known for, silent drive and effortless power.
Why separate a discussion on Porsche? If you follow automotive blogs, you’ve likely seen the viral reports regarding the Taycan’s resale value. Some owners claimed values plummeted by nearly half in just a few years. That narrative dominated Reels, podcasts and television discussions: The idea that multi-crore EVs suffer from rapid depreciation. That, mixed with the consumer sentiment in the US, where battery replacement cost and infrastructure challenges started to become big speed breakers on the road to electrification, put all the potential buyers in a dilemma. However, the tide is turning now. The common customers are looking at EVs in a more nuanced, rational manner, and the luxury car makers are pivoting fast. Electric cars now account for 10 percent of Porsche’s overall sales in India, while the Spectre has become the second most delivered Rolls-Royce model over the last two years.
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Mercedes-Benz India’s electric portfolio is equally varied, with EQA at the entry point starting at an ex-showroom price of ₹67.2 lakh. The electric version of the B Class, EQB, starts at ₹72.2 lakh, EQE at ₹1.41 crore, and the G Class at ₹3.1 crore. There are two versions of EQS, the sedan starts at ₹1.3 crore and the SUV version at ₹1.33 crore.
Volvo has two electric products—EX40, a compact electric SUV, is priced at ₹50 lakh, ex-showroom. The other option is a coupe-shaped crossover called EC40, at an ex-showroom price of ₹59 lakh.
One of the headliners in this segment, the Porsche Taycan Electric, is available in India at a starting price of ₹1.69 crore, and the Cayenne Electric starts at ₹1.75 crore. Rolls-Royce Spectre starts at around ₹7.6 crore. The Black edition was launched at ₹9.5 crore.
We are seeing a sharp drop in the average age of luxury buyers: The average Rolls-Royce customer is now 43, down from 56 in 2010. For Spectre, it must be lower. For brands like Mercedes-Benz, BMW and Lamborghini, that figure has fallen to between 35 and 38.
This demographic shift could be the most defining argument in the ICE (internal combustion engine) versus EV debate. Younger buyers care about the environment and sustainability; they don’t value lip service. They decide with intent, viewing their purchase as a contribution to the climate cause. Granted, this transition will take time. We are currently seeing a global ‘EV fatigue’. The initial euphoria has faded, replaced by concerns over infrastructure, battery prices and the geopolitical grip on rare earth minerals. This resulted in the shocking news of Porsche’s 99 percent operating profit fall last year and a subsequent scaling back of their EV plans—a move mirrored by Ford, GM and Stellantis. Was it a case of investing too much, too early—much like the current scepticism surrounding AI? Perhaps. But the market will consolidate and move forward once more ‘soulful’ products arrive from giants like Ferrari and Bentley.
Look at the products from Chinese giants like Xiaomi SU7 and BYD Yangwang U9, breaking records set by Porsches and Lamborghinis and that too at the ‘Green Hell’, Nurburgring, Germany, track. But, is the traditional luxury car buyer going to pay the same money for those two Chinese cars? Nope. To fight legends like Lamborghini, Ferrari and Porsche, you need to be a legend. In this day and age, can algorithms trump the legacy and find you a shortcut to legendary status? Possible. Remember the Hayabusa story? How a land speed record of 300+ kmph turned it into an overnight sensation.
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Santosh Iyer, CEO of Mercedes-Benz India, says: “Our younger buyers, comprising startup founders, entrepreneurs and salaried professionals, are increasingly preferring top-end BEVs, and many are buying these cars as their first luxury vehicle. This reflects a gradual reduction in the average age of customers and a growing preference for digital features and the sustainability narrative. However, some traditional luxury buyers still view BEVs as a niche addition to their mobility needs, maintaining a preference for ICE vehicles.”
Take Manan Shah who feels bad ditching his Rolls-Royce Spectre for any trip outside Mumbai, opting instead for the ICE or hybrid models in his fleet, which includes a Bentley, Lexus and several AMGs. Shah, the managing director of MICL Group, never considered himself an ‘EV person’, but he now has three electrics in his stable, including the Spectre and a Cayenne. “The perception game has changed, and customers forget the old ways,” he says, noting that several friends have also bought the Spectre.
According to him, the electric revolution is here to stay. He loves using these cars in Mumbai traffic; that extra scoop of excitement from instant torque is a game-changer for him, while the electric system adds a level of quiet refinement to an already-customised, feature-loaded vehicle. During one such conversation, conducted from his Rolls-Royce in the heart of Mumbai, one could hear no honking or traffic bustle in the background.
However, luxury customers need more than just acceleration and silence. Shah clearly outlines the issues makers need to fix. While the bespoke experience is world-class, Indian customers often cannot experience the cars before buying due to a lack of display units. Shah bought both his Spectre and Cullinan without a test drive. Clearly, Indian customers are ready to splurge like those in international markets and should be given similar options. This includes the charging network; manufacturers must work on longer ranges and dedicated charging stations for luxury cars rather than relying on third-party infrastructure. Exclusive cars deserve exclusive infrastructure.
With a pipeline of new models from almost every manufacturer, we are seeing a redefined strategy. BMW’s Neue Klasse (starting with the iX3) and Mercedes’s new GLC EV represent a radical design shift. Furthermore, the Indian love affair with the SUV remains unshaken; it is the body shape that will continue to rule the charts.
The entry of India’s largest mass-market manufacturer into the EV space also means an infrastructure boost. The luxury car buyers can afford larger batteries, so that they get a longer range, have drivers who can take care of the charging duties, but a more robust national charging network will help overall buyer confidence. The case study of the BMW iX1 LWB has shown that when you combine range, strong resale options and local manufacturing, Indian luxury buyers are ready to plug in.
In 1900, Charles Rolls, the co-founder of Rolls-Royce, said: “The electric car is perfectly noiseless and clean. There is no smell or vibration, and they should become very useful when fixed charging stations can be arranged. But for now, I do not anticipate that they will be very serviceable—at least for many years to come.”
That time has finally arrived.
First Published: Jan 28, 2026, 18:38
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