India's luxury auto market is rebounding after a slow start to 2025, with GST 2.0 emerging as the main catalyst.
After a record-breaking year, India's automobile industry is entering 2026 on a relatively strong footing, with sales growth expected in the 6-8 per cent range. The outlook is underpinned by policy support, including GST rationalisation, easing monetary conditions, and income tax relief, which together are likely to improve affordability and sustain consumer demand across vehicle segments.
Audi plans to focus the Indian market, including deepening market penetration and increasing sales volume.
Prices of various car models -- ranging from entry-level hatchbacks to high-end luxury offerings -- are set to rise as automakers have announced price hikes with effect from January. Carmakers cite an increase in input costs and operational expenses as the main reason to implement price increases from the next month. Industry experts, however, note that the exercise is also undertaken by automakers every year in December to shore up sales volume in the last month of the year, as customers postpone buyouts to later months to get the new year manufactured units.
Indian passenger vehicles market registered record wholesales of 43 lakh units in 2024, with companies like market leader Maruti Suzuki, Hyundai, Tata Motors, Toyota Kirloskar Motor, and Kia posting their best-ever annual domestic sales. The continued growth of SUVs, along with rural markets playing a key role in driving up car sales, helped the industry better the previous best of nearly 41.1 lakh units posted in 2023.
Traversing from being just vehicle manufacturers to mobility solutions providers amid a raging debate over which eco-friendly technology must be incentivised, the Indian automobile industry is driving in the new year under the shadow of a slowdown in sales with the post-pandemic pent-up demand in distant memory. The shift in the auto industry -- where advanced technologies like autonomous driving, vehicle intelligence, connected features and electrification are quickly gaining traction -- will be reflected in the upcoming Bharat Mobility Global Expo in which India's flagship Auto Expo has been clubbed to be held from January 17-22, 2025 in Delhi-NCR.
Maruti Suzuki India, Mahindra & Mahindra, Hyundai Motor and luxury car maker Audi have extended support to customers in cyclone and flood affected regions of Tamil Nadu and Andhra Pradesh. In a statement, Maruti Suzuki India said it has collaborated with its dealer partners and made several arrangements at its workshops. As soon as the news about the cyclone 'Michaung' was reported, the company proactively sent out 7 lakh SMS alerts containing precautionary steps to its customers to ensure that even before the cyclone hits, customers could take precautionary measures to safeguard their cars against potential damage, it said in a statement.
Automakers Maruti Suzuki, Mahindra & Mahindra and Audi India on Monday announced plans to hike prices of their passenger vehicles in January 2024 citing reasons, including cost pressure driven by overall inflation and increased commodity rates. Besides, Tata Motors and Mercedes-Benz India are mulling increasing the prices of their models from January. The country's largest carmaker Maruti Suzuki India, which sells a range of vehicles from entry-level small car Alto to multi-utility vehicle Invicto, priced between Rs 3.54 lakh and Rs 28.42 lakh (ex-showroom Delhi), on Monday said the price hike would vary from model to model.
After a brief lull during the pandemic, there is a strong revival in luxury car sales, bolstered by more launches across price bands, replacement demand, ban on old diesel vehicles in the NCR, and 'revenge buying'.
Carmakers Mercedes-Benz, Audi, Renault, Kia India and MG Motor on Wednesday announced plans to hike vehicle prices from January to partially offset the impact of rising input costs. They join the likes of market leader Maruti Suzuki India and Tata Motors, which have also made the year-end announcements to raise prices from next month. Audi India said it will increase prices of its entire model range by up to 1.7 per cent, while Mercedes-Benz India noted it will hike the prices by up to 5 per cent from January 1.
German luxury carmaker Mercedes-Benz India on Thursday said it will hike prices of select models by up to two per cent from January 1, 2022, to offset feature enhancement and rising input costs. At the same time, Audi announced a price increase of up to 3 per cent across its entire model range, effective from January 1 next year. Mercedes, however, said it is committed to price protection to customers who have booked their cars and are waiting for more than four months for select models.
Dealerships, too, are going all out to roll out the red carpet for women.
Audi's strategy seems to point to pushing technology to directly connect with consumers using digital platforms and marketing to synchromesh into one seamless experience, says Pavan Lall.
German luxury carmaker Audi on Thursday launched a new version of its flagship SUV Q7 in India with prices starting at Rs 79.99 lakh (ex-showroom) as it seeks to further accelerate growth in the country. The locally assembled vehicle is powered by a 3-litre petrol engine with a 48V mild-hybrid system generating 340 hp. It can accelerate from 0-100 km/hr in 5.9 seconds. The new Q7 will be available in two variants -- Q7 Premium Plus and Q7 Technology -- priced at Rs 79.99 lakh and Rs 88.33 lakh (ex-showroom), respectively.
German luxury car maker Audi on Thursday launched three all-electric SUVs under its e-tron range with prices starting from Rs 99.99 lakh kicking off its electrification journey in the country. The three all-electric SUVs -- e-tron 50, e-tron 55 and e-tron Sportback 55 -- are priced at Rs 99.99 lakh, Rs 1.16 crore and Rs 1.18 crore respectively (all prices ex-showroom), Audi India said in a statement. Commenting on the launch of the e-tron brand in India, Audi India Head Balbir Singh Dhillon said, "we are launching not one, but three electric SUVs that begin our electrification journey." The three electric SUVs are "the perfect confluence of luxury, zero emissions, performance and everyday usability", he added.
The answer would have been an unequivocal yes had the A4 been priced more aggressively, says Pavan Lall.
The company attributed the hike to depreciating rupee and rising input costs.
Buoyed by sales in October, the company said it is confident of crossing the sales target of 8,000 units in 2012.
Leading the growth for Audi in India are the Audi Q3, new Audi Q5 and Audi Q7.
Luxury car maker Audi has launched a new version of super sports car R8 in India, priced between Rs 1.35 crore and Rs 1.74 crore (ex-showroom, Delhi).
German luxury car manufacturer Audi on Thursday reported 17.8 per cent growth in October sales at 1,002 units.
"The introduction of Audi A8 L is a landmark achievement for Audi India as it celebrates our past successes and foreshadows future growth," Audi India Head, Michael Perschke said.
Cars priced above Rs 25 lakh account for 1 per cent in India's 3 million-car market and the share has remained unchanged over the last five years.
The all-new chassis of the SUV is made up of multi-material body.
With high aluminium content in the body, the vehicle's weight is relatively low.
During January-May period, the company's sales went up by 24.8 per cent to 4,096 units from 3,282 units in the same period of 2012.
Buoyed by impressive sales last year in India, German luxury car maker Audi is gearing up to showcase a host of models, including the debut of its A3 sedan, at the upcoming Auto Expo.
Audi plans to launch a total of 10 products in India this year as it looks to fend off stiff competition from rival Mercedes-Benz.
Audi enters North East India, eyes 200 units in first year.
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The company introduced many firsts in 2014, including introduction of segment first products such as Audi A3 Sedan and Audi A3 Cabriolet.
Automakers are caught in a chicken-and-egg situation: Prices have to come down if volumes are to increase, and volumes won't increase unless prices come down, notes Pavan Lall.
The increase in prices across model range available in India would range from 3-5 per cent, effective January 1, 2014, the company said in a statement.
Audi launches Avant RS6 in India.
Audi plans to launch a total of 10 products in India this year as it looks to fend off stiff competition from rival Mercedes-Benz.
German luxury car maker Audi plans to launch around 10 new models next year in India as it looks to further consolidate its position in the country.
The athletic silhouette with the dynamic flat rear window signalise urban sportiness.
'To become more Indianised we had to be more colourful,' Rahil Ansari, Audi's India head, tells Ajay Modi.
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