Luxury Car Buyers Make a Move to Shift From Diesel to Electric

Indian luxury car buyers are making a shift from diesel to electric vehicles. Sales of diesel vehicles in the luxury vehicle segment have reduced by more than half in the last five years, as the rich and well-heeled have taken the lead in adopting electric vehicles in the country. Diesel's share of luxury vehicle sales dropped to 35% last year from 80% in 2018, as electric vehicles now account for 6% of the market.

The ease of installing charging points at home or work drives demand for luxury EVs. The high demand for EVs in the luxury segment has surprised brands like BMW, Audi, and Mercedes, who are surprised by the strong demand for EVs in a country with limited charging infrastructure. As diesel sales decline, luxury carmakers focus on petrol and electric vehicles.

These brands have lined up more than half a dozen EV models for launch next year to capitalise on latent demand. BMW, which leads the Indian luxury EV market with a 50% share in 2023, plans to drive two new EV models in 2024. Mercedez Benz India has scheduled three new EV launches this calendar year.