11% of all luxury vehicles sold in India were electric in 2025: Mercedes-Benz India MD

High-end EVs are becoming more and more popular in India's premium automotive market, as seen by the fact that between January and May 2025, electric vehicles (EVs) made up 11% of all luxury automobiles sold there, up from 7% the previous year, Mercedes-Benz India stated on Wednesday, Autocar reported. 

Mercedes-Benz India's Managing Director and CEO, Santosh Iyer, stated that the company's own EV sales increased by 76% over the course of the five months, surpassing the luxury EV market's 66% year-over-year growth, according to Vahan registration statistics.

Iyer noted that the company's electric products, such as the EQS SUV and EQE, are priced above ₹1.5 crore and have experienced great traction. He added that "luxury EV adoption is accelerating, with affluent buyers showing strong interest in top-end electrified models,” Autocar Professional reported.

According to Autocar, Mercedes-Benz India's performance in the high-end EV market is especially noteworthy because it does not provide entry-level EVs. Iyer credited improved charging infrastructure, favourable product positioning, and growing awareness for this expansion. Due to policy-linked benefits, the corporation has also noticed increased demand in some models because of a ₹1 crore pricing difference between ICE and EV variants.

Further, citing Iyer, Autocar reported, “In the luxury segment, EV penetration is at 11%, compared to around 4% in the mass market. It may not be explosive yet, but the month-on-month trajectory is strong.”

Meanwhile, even if sales of electric vehicles (EVs) level out in the upcoming months, Iyer anticipates double-digit growth in 2025 despite a difficult macroeconomic environment that includes exchange rate instability. Mercedes-Benz India is still committed to producing high-end EVs and anticipates more expansion as infrastructure develops and consumer confidence rises.