Jaguar Land Rover (JLR) India has broken into the top three positions in the domestic luxury car market –an arena traditionally dominated by the German trio: Mercedes-Benz, BMW and Audi. JLR India, a subsidiary of Tata Motors, sold 6,183 vehicles in FY25, registering a
40% year-on-year growth and also its highest-ever sales in a fiscal. JLR India’s FY25 sales surpassed Audi India’s tally of 5,993 units, pushing the latter out of the top three. Mercedes-Benz India continued to lead the market, delivering a record 18,928 vehicles in FY25, followed by BMW India, which which sold 15,810 cars.
Before this, in calendar year 2019, JLR had briefly overtaken Audi with sales of 5,000 units compared to Audi’s 4,594, but Audi had regained its third spot in 2020.
What makes JLR India’s performance stand out is that nearly all its sales came from the Land Rover brand. Jaguar, the other half of JLR, is currently undergoing a transformation into an all-electric brand, with its new electric models expected to debut in the Indian market around 2027-28.
Rajan Amba, managing director of JLR India, attributes the surge in sales to the localisation of key models. “The Range Rover and Range Rover Sport are the primary growth drivers, especially after we began local production in May 2024,” Amba said. “The Defender, particularly the 110 variants, has also emerged as our best-selling model,” he added.
In May 2024, JLR began assembling four models at its Pune facility: Range Rover 3.0 diesel HSE, Range Rover 3.0 petrol Autobiography, Range Rover Sport 3.0 diesel Dynamic SE, and Range Rover Sport 3.0 petrol Dynamic SE. Localisation not only reduced the price of these vehicles by 18–20% but also helped cut down the waiting period, resulting in fewer cancellations and higher customer satisfaction. The shorter delivery timelines and competitive pricing allowed JLR to attract customers from rival brands, including Mercedes-Benz, BMW, and Audi.
The localisation effort and improved product availability provided significant momentum. “We have seen increased interest from first-time luxury car buyers, customers upgrading from other brands, and even buyers in tier 2 cities,” Amba said.
“The 40% growth in FY25 is especially impressive considering we also saw a 110% increase in the January-March quarter alone, with 1,793 units sold,” he added.
Meanwhile, Mercedes-Benz India maintained its dominance with its highest-ever fiscal sales. According to MD and CEO Santosh Iyer, the brand’s performance was driven largely by demand for top-end vehicles (TEVs), which are cars priced above `1.5 crore. “Today, one in every four cars we sell is a TEV,” Iyer said. “In fact, every second German luxury car sold in India is a Mercedes-Benz,” he said.
Despite a 4% annual growth, Mercedes-Benz experienced an 11.8% dip in the January-March quarter sales due to a slowdown in the entry-level luxury segment. Nevertheless, the brand’s product mix remains strong. The EQS SUV led among electric offerings, while the long-wheelbase E-Class accounted for 20% of total sales. SUVs formed the majority of the company’s portfolio, contributing 60% to total volumes, with models like the GLA, GLC, GLE, GLS, and G-Class seeing strong demand. Some high-end models, including the G63 AMG and the Mercedes-Maybach S-Class, now command waiting periods of up to 12 months.
Explaining the continued appeal of TEVs, Iyer cited strong GDP growth, a rise in salaried professionals, more women buyers, and a boost in corporate earnings. “TEVs and Maybachs are also seen as status symbols and rewards,” he noted. “We’ve seen startup founders buying these cars after hitting key milestones, or gifting them to family members.”
However, Iyer cautioned that sentiment in the luxury segment is starting to waver. “Even the ultra-rich are not immune to macroeconomic concerns. Geopolitical tensions and a stronger euro are likely to make imports more expensive, which could lead to a temporary dip in demand. But we don’t see this as a long-term concern,” he said.
