Luxury carmakers such as BMW, Mercedes-Benz, Audi and Volvo Cars are increasingly leveraging structured incentive and buyback programmes, with varying degrees of flexibility, to boost sales and ease ownership concerns.
BMW India’s ‘Assured Buyback’, part of its BMW 360 programme, offers up to 70% of the ex-showroom price on models such as the X1, 3 Series and 5 Series among the highest in the segment, according to the brand. The scheme allows customers to lock in future value, lowering loan exposure and EMIs, while offering flexibility on tenure and mileage. At the end of the term, customers can return, retain or upgrade the vehicle. “The programme has seen strong traction in EVs, with over 90% of BMW Financial Services customers opting for it. ” said Hardeep Brar, BMW Group India.
Roadmap for EV Adoption
Mercedes-Benz India’s ‘Star Agility+’ follows a similar structure but focuses on affordability. The brand says that this program offers up to 40% lower EMIs compared to conventional loans, supported by a pre-defined residual value. Customers can choose tenures between 12 and 60 months and mileage options of 10,000–20,000 km annually. End-of-term options include return, retain, refinance or upgrade, driving financing penetration across both ICE and EV portfolios. Santosh Iyer, MD & CEO, Mercedes-Benz India, said financial services are a “strong catalyst” for growth, with Star Agility offering flexibility and lower EMIs.
Volvo Cars India has taken a more targeted approach, offering a 60% assured buyback at dealer level after three years on the all-electric EX30, aimed at addressing EV resale concerns.
Audi India is also seeing traction in similar programmes. Balbir Singh Dhillon, Brand Director, Audi India, said the company offers up to 60% residual value after three years across models such as the A4, Q3, Q5 and Q7, along with low-EMI balloon financing. “These programmes are gaining traction, driven by assured residual value and easier upgrade cycles,” Dhillon said.
Seamless Upgrades
Industry observers note that such schemes are becoming central to luxury car sales strategies, reducing depreciation risks and enabling seamless upgrades. “Residual value is a key consideration for Indian car buyers, especially in the premium segment where it rivals fuel efficiency. With concerns around EV resale and battery life, structured financing and buyback schemes are becoming critical tools for OEMs to drive sales among value-conscious, financially savvy customers,” said V G Ramakrishnan, MD, Avanteum.
While BMW leads on higher residual value guarantees and EV uptake, Mercedes-Benz emphasises affordability, and Volvo targets EV-specific concerns, reflecting a broader shift towards flexible, usage-led ownership as these luxury brands look to increase their market share.
