How luxury EVs are redefining India’s roads

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How luxury EVs are redefining India’s roads

India’s luxury electric vehicle (EV) market is on a remarkable growth trajectory, changing the very way Indians perceive premium mobility. Once an experimental niche, luxury EVs have now become a symbol of sophistication, technological progress, and sustainability for the country’s affluent.

But what’s driving this surge, and what should a potential buyer really expect from a luxury EV experience in today’s landscape? According to recent market data, luxury EV sales in India soared by 66% in early 2025, with registrations crossing 2,000 units between January and May alone, a steep rise from around 1,200 just a year before. This sharp uptake means that electric vehicles now make up about 11% of overall luxury car sales, a significant rise from just 2% in 2020.

Clearly, electric mobility is no longer a foreign concept in luxury automotive circles but a rising new normal. Rajat Mahajan, Partner and Automotive Sector Leader at Deloitte India, observes that “New and compelling product launches, settling range anxiety with improved charging infrastructure, favourable policy, and a strong tech-lifestyle pull are driving this market. More luxury EVs are being bought by younger, professionally affluent Indians, and the pool itself is diversifying with a rising proportion of women buyers.

Gaurav Rathore, Co-founder and CEO of EVeez, highlights that “enhanced ecological awareness and credible product options are powering the growth story of the segment. The entry of Tesla, for instance, has further expanded the choice range for customers. The rise of EVs as a symbol of status in society is also pushing sales to the north. In addition, the impact of the policy framework on EV sales is also apparent in the way both central and state governments are offering attractive incentives to EV buyers.

In addition, the rapidly expanding charging infrastructure is also stimulating demand for luxury EVs.”

Who is buying?

The typical luxury EV buyer in India is getting younger, more tech-savvy, and includes more women than ever before. A significant percentage are first-time luxury car buyers, drawn by the newness and innovation of electric vehicles. Younger professionals, entrepreneurs, and those with global exposure are increasingly opting for luxury EVs to signal environmental consciousness and a preference for advanced tech. Ashish Kumar Jha, Assistant Vice-president at HSBC and owner of luxury EV Mahindra BE 6, notes, “A conventional luxury car is excellent, but an EV elevates the sense of calm and sophistication. The near-silent operation creates a sanctuary on the road, allowing me to truly appreciate the premium interior without the vibration and noise of an engine.” He further adds that introducing EV into his digital life, such as smart pre-conditioning and trip planning, make the entire experience feel ahead of its time. Milind Shah, Head at MG SELECT, says, “MG SELECT is redefining what luxury means in the EV space… From personalized ownership experiences to immersive brand touchpoints, MG SELECT is redefining the customer journey. Our models offer lounge-like cabins, advanced sound systems, and features like single-pedal driving and reduced maintenance, all of which make them ideal for both urban commutes and long-distance escapes.

 Ashish Jha

Audi India’s Head, Balbir Singh Dhillon, adds, “Luxury EVs go beyond sustainable mobility to offer distinct lifestyle advantages. Customers appreciate the silent drive, the convenience of home charging and the lower running costs. Choosing a luxury EV is a statement of being future-forward and environmentally conscious.” For those weighing a luxury EV against a conventional luxury car, user experiences reveal both ease and excitement.

Jha reports that charging at home covers most of his needs, with road trips requiring only brief fast-charging stops. Maintenance and running costs are notably lower, and he describes the ownership experience as “transforming your relationship with your car” in a way only next-generation tech can. Manufacturers and experts agree that while policy and infrastructure play crucial roles, the real draw now rests on the promise of ongoing innovation, growing cost-savings, and a seamless, luxurious experience that feels future-ready. As new models arrive and the ecosystem matures, luxury EVs are set to become not just alternatives, but benchmarks in India’s evolving premium mobility story.

What’s driving luxury EV growth in India?

Information by Deloitte’s Rajat Mahajan.

  • More model choices: Major luxury brands are launching advanced electric models with better range and tech.
  • Government incentives: Low 5% GST on EVs versus 40% on petrol/diesel and state perks are boosting appeal.
  • Expanding charging network: Nearly 29,000 chargers nationwide ease range anxiety, aiding long-distance travel.
  • Cost savings: Lower maintenance and fuel costs, plus long warranties, offer real ownership benefits, especially for high-mileage users.

What Luxury EVs Offer?

  • Quieter, smoother drive: Luxury EVs provide a serene, minimalist driving experience unmatched by conventional luxury cars.
  • Innovative interiors: Next-gen designs include panoramic sunroofs, ultra-premium seating, and over-the-air software upgrades, transforming the cabin into a “tech hub on wheels,” as Ashish describes it.
  • Performance & style: Instant torque, whisper-quiet acceleration, and striking high-end styling often surpass traditional petrol/diesel luxury cars in both drive quality and appeal.
  • Advanced software & customisation: Software-first architecture enables periodic updates improving range, safety, and infotainment long after purchase.
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