BMW India and Mercedes-Benz India both posted quarterly sales growth recently, signaling renewed momentum in the luxury automotive sector. According to BMW India, it sold 11,978 BMW and MINI vehicles in the first nine months of 2025 (January to September). Mercedes-Benz India reported sales of 9,357 units between April and September 2025. This positive trend has been driven partly by India’s festive season, with the recent removal of cess under GST 2.0 sharply lowering the prices of several models. Yet, the true impact of the GST cut will likely become clearer in October’s figures, as automakers temporarily slowed factory dispatches to navigate tax changes.
Long-Wheelbase Models Dominate
A key highlight is the growing popularity of long-wheelbase (LWB) luxury vehicles. BMW, which offers LWB variants in its 3-Series, 5-Series, 7-Series sedans — and the all-electric iX1 SUV — credits these body styles for more than half its sales. Meanwhile, the Mercedes-Benz E-Class LWB, which sparked the segment’s growth in India, remains the country's best-selling luxury car.
Hardeep Brar, President of BMW India, noted that Indian buyers consistently choose extra rear-seat legroom. He pointed out that the iX1 — sold exclusively as a LWB – has also helped BMW lead in the luxury electric vehicle space, with over 20 per cent of BMWs sold in India now electric.
The Festive Boost and Electric Shift
Brar explained that surging demand for the iX1 stems not just from the appeal of sustainability but also the practical benefits it offers, including lower costs and extra cabin space. With many luxury car owners preferring to be chauffeured, LWB models are especially attractive, leading to a current three-month waiting period for the iX1.
The Origins and Spread of LWB Luxury
The demand for LWB vehicles traces back to China in the early 2000s, where German luxury automakers adapted to local preferences for rear-seat comfort. Today, nearly all German models sold in China are LWB variants. In India, flagship cars like the Audi A8, BMW 7-Series, and Mercedes-Benz S-Class have always been LWB, but China upped the game by introducing stretched versions for entry-level models like the BMW X1.
Surprisingly, the adjustments are minor — typically just 100-200mm longer — but the improvement in comfort is akin to moving from economy to business class on a flight. Unlike Europe or North America, where luxury car owners often drive themselves, buyers in China and India value rear-seat space, reflecting family-oriented travel preferences.
Future Model Launches
Given sustained demand, BMW India is reconsidering future product strategies. Most new launches are expected to favor LWB variants. Brar also hinted at the upcoming iX3 electric SUV and the i5 electric sedan, suggesting that India is likely to prioritize their LWB versions for launch.
Luxury car buyers in India are driving a clear shift towards long-wheelbase, rear-focused comfort, especially in the electric segment, prompting brands like BMW and Mercedes-Benz to pivot their offerings accordingly.
