BMW India's pre-owned sales surged 54% year-on-year in the first half of 2026, while Mercedes-Benz India's used-car business grew at a double-digit pace. According to reports from Business Standard, Audi India sold about 4,500 pre-owned cars in 2025, nearly one used vehicle for every new Audi sold. The growth reflects a strategic shift as buyers seek more affordable entry points into premium brands amid rising new car prices. As BMW Group India noted, certified used cars are increasingly becoming a stepping stone into luxury ownership, particularly for younger buyers, with customers becoming more discerning about service history, warranty coverage, running costs, and vehicle condition.
The rupee fell 15.44% against the euro in 2025 and another 4% through August 11 this year, bringing the total decline to around 19% against the Eurozone currency in nearly 20 months. As reported by Business Standard, luxury-car makers have absorbed only part of the higher costs from currency movements, imported components, logistics and other inputs. Dealers estimate that prices have risen by about ₹3 lakh for some entry-level models and ₹35-40 lakh for certain top-end cars over the past year or so. BMW Group India stated that the increasing forex rates are a big challenge, and we have implemented price hikes to absorb that partially, with most customers coming from the business class so geopolitical and macroeconomic impacts do influence sentiment.
Mercedes-Benz raised prices by up to 3% in January 2025 and announced another increase of as much as 3% in two phases in June and September last year. According to Business Standard, BMW raised prices by up to 3% in January, April and September, while Audi increased prices by up to 3% in January and 2% in May. The hikes continued this year with Mercedes-Benz raising prices by about 2% in January and April, BMW increasing prices by 2-3% in January, followed by hikes of up to 2% in April and July, and Audi raising prices by as much as 2% in April. As BMW Group India explained, certified used cars give customers a chance to experience the brand's products, sales and after-sales services before potentially upgrading to a new vehicle.
As reported by Business Standard, Audi India's certified pre-owned sales climbed from fewer than 500 vehicles in 2020 to about 4,500 in 2025, while its Audi Approved:plus network expanded from seven outlets to 27. Audi India head Balbir Singh Dhillon noted that new-car prices are constantly increasing, with the company taking several price increases last year and already implementing two hikes this year. The pre-owned operation allows Audi to serve customers in the ₹30-60 lakh segment when new Audi prices rise to about ₹60 lakh. Audi follows a similar strategy, with about one in three new Audis sold in India bought by an existing customer, making the pre-owned business an additional source of buyers who could eventually move to a new Audi.
According to Business Standard, BMW's new-car sales rose 17% in the first half of 2026, against its estimate of about 4% growth for the overall luxury-car market. The company expects double-digit growth in new-car sales for the full year. Audi India estimates the segment grew 7-8% in the first half of 2026, with the company declining during the period but expecting to recover some ground in the second half and finish the year broadly flat. Mercedes-Benz India cited strong residual values as supporting its pre-owned business, with Mercedes-Benz vehicles commanding comparatively high residual values due to less availability in the organised market, due to longer ownership cycles. Santosh Iyer, managing director and CEO of Mercedes-Benz India, called the pre-owned operation an important strategic pillar, stating "Our pre-owned business is an important strategic pillar, growing in double digits and offering customers a wide range of certified cars to upgrade, with complete transparency and assurance of best value".
