India’s automotive landscape is undergoing a dramatic transformation, shifting gears from a market once dominated by utilitarian vehicles to a burgeoning hub for luxury cars. What was once an aspiration for a select few is now a rapidly expanding segment, driven by rising affluence, global exposure, and a desire for vehicles that reflect a sophisticated lifestyle.

For decades, car ownership in India was a milestone, a symbol of progress embodied by the humble Maruti 800 or the robust Hindustan Ambassador. These vehicles, while practical and necessary, underscored a nascent economy. “The Maruti 800 rapidly captured the hearts of both the affluent and the common man. Its reliability, low maintenance needs, and the backing of Maruti’s extensive dealer and service network made it a household name across India,” notes an analysis from Stephen Musings, highlighting its iconic status. The Ambassador, despite its British origins, was “fondly called the ‘King of Indian roads’,” symbolizing ruggedness and omnipresence.

However, the economic liberalization of the 1990s and early 2000s paved the way for a new era. Global luxury marques like Mercedes-Benz, BMW, and Audi began their foray into the Indian market. Initially, these brands remained largely aspirational, with India’s inherent price sensitivity posing a significant hurdle. Yet, over the last two decades, a quiet revolution has taken place.

The burgeoning urban middle class, armed with increasing disposable incomes and unprecedented global connectivity, began viewing cars not just as transport, but as extensions of their identity and comfort. This shift has been particularly evident in the surging popularity of SUVs. With their commanding presence, spacious interiors, and advanced features, SUVs have become the new status symbols, equally at home on bustling city streets and in aspirational social media feeds. “SUVs now make up half of all passenger vehicle sales in India, doubling their market share in five years,” the auto sector data showed, underscoring their dominance.

This evolution extends beyond economics. Popular culture, fueled by social media, has played a significant role. Celebrities showcasing their opulent rides and influencers detailing their automotive choices on platforms like YouTube have made luxury cars highly visible and desirable. What was once confined to exclusive garages is now part of everyday digital consumption, fueling aspirations across broader demographics.

The demand has also become more discerning. Indian luxury car buyers are no longer content with just a prestigious badge. They seek intelligent design, intuitive interfaces, seamless connectivity, and personalized service. Their definition of luxury has matured, moving “from the obvious to the understated, from ownership to experience.”

This sophisticated appetite has created a “white space” in the market, a gap between mass-premium vehicles and traditional ultra-luxury offerings. JSW MG Motor India has stepped into this space with a unique proposition: MG SELECT. This luxury brand channel aims to offer a softer, more elevated brand experience tailored to the refined preferences of today’s buyer.

“MG SELECT is designed to bridge the space between mainstream mobility and traditional luxury,” states Milind Shah, Interim Head of MG SELECT. “We are driven by technology and aspire to craft thoughtful ownership experiences for our clientele. With a strong focus on New Energy Vehicles, MG SELECT caters to a generation of buyers who seek experiences that transcend the ordinary drive.”

MG SELECT plans to introduce two flagship models: the MG M9 – The Presidential Limousine, and the MG Cyberster – World’s Fastest MG, both aligning with a commitment to luxury and performance. The brand emphasizes “concierge-style service tailored for discerning, experience-driven buyers,” as highlighted by Shah, emphasizing personalized interactions and enhanced retail spaces.

The electric vehicle (EV) segment is also playing a crucial role in India’s luxury narrative. EVs have transcended their eco-friendly novelty status to become true luxury contenders. High-end electric sedans like the BMW i7 and Mercedes EQS deliver the same plush comfort and commanding road presence as their internal combustion counterparts, now powered by advanced battery technology.

Indeed, luxury EV adoption in India is outpacing mass-market segments. According to Mercedes-Benz India, EV penetration in the luxury car segment can be as high as 10-12 per cent of total sales for some premium brands. “The acceptance of EVs in the luxury segment is much stronger compared to the mass market,” affirmed Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, in April 2025. “Of the 51,000 luxury cars sold in the last financial year at an industry level, nearly 4,500 units were EVs.”

The Indian luxury car market is demonstrating robust growth. In the fiscal year 2025, luxury carmakers sold a record 51,406 units, marking a 3 per cent year-on-year increase. Mercedes-Benz India led the market with 18,928 units, achieving its best-ever fiscal performance, with its top-end luxury segment (including S-Class, Maybach, and AMG models) growing by a remarkable 34 per cent. BMW India followed with 15,810 units, a 5 per cent rise, while Jaguar Land Rover (JLR) saw an impressive 40 per cent year-on-year growth, selling 6,183 units.

This moment marks a significant turning point where India is not just consuming luxury but actively shaping it. With premium products increasingly tailored for local sensibilities and infrastructure, the market is proving that elegance and engineering can be homegrown. The definition of luxury is expanding, encompassing everything from traditional chrome accents and opulent interiors to cutting-edge charging cables and seamless digital experiences. India’s burgeoning love affair with luxury cars is a testament to aspiration, increasing access, and a unique, evolving understanding of what comfort and prestige truly feel like on wheels.

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