2 weeks ago
Luxury Cars Get Costlier as Certified Used Demand Surges
New luxury cars in India have become more expensive several times.
One reason is that the rupee has lost value against the euro, making imported parts and other costs higher.
Some entry-level luxury cars have become about Rs 3 lakh more expensive, while some top-end models rose by Rs 35 lakh to Rs 40 lakh.
Because new cars cost more, some people are choosing certified used luxury cars instead.
These cars are checked and sold with assurances such as service information and warranty coverage.
BMW's used-car sales grew strongly in the first half of 2026.
Mercedes-Benz also reported double-digit growth, while Audi sold about 4,500 used cars in 2025.
The car companies hope used-car buyers may later purchase new cars from the same brand.
However, the reports do not prove that all customers who moved to used cars did so because of price increases.
BMW India's certified pre-owned sales rose 54% year-on-year in the first half of 2026.
Mercedes-Benz India's used-car business recorded double-digit growth amid repeated new-car price increases.
Audi India sold about 4,500 pre-owned cars in 2025, nearly one for every new Audi sold.
The rupee weakened about 19% against the euro over nearly 20 months, increasing import-related costs.
Luxury automakers say certified used cars help retain aspirational buyers and create future new-car customers.
- Who
- BMW India, Mercedes-Benz India and Audi India, along with buyers of luxury cars.
- What
- Rising prices for new luxury cars are coinciding with strong growth in certified pre-owned sales.
- Where
- India.
- When
- Price increases occurred during 2025 and 2026; BMW's reported pre-owned growth covers the first half of 2026, while Audi's 4,500 used-car sales were recorded in 2025.
- Why
- The rupee's depreciation against the euro, along with higher imported-component, logistics and other input costs, has pushed up new-car prices and made certified used cars more attractive.
Automakers' Strategic View
Market Caution
Why used-car demand is growing
Automakers' Strategic View
BMW, Mercedes-Benz and Audi say certified pre-owned cars provide more affordable entry points into luxury ownership as new-car prices rise.
Market Caution
The reports caution that currency-driven price increases alone do not establish a direct shift from new vehicles to used vehicles.
Role of pre-owned programmes
Automakers' Strategic View
The companies describe used-car operations as strategic businesses that widen their customer base, improve retention and may create future new-car buyers.
Market Caution
The immediate evidence shows strong used-car growth, but it does not establish how many used-car buyers will later upgrade to new vehicles.
Impact of price increases
Automakers' Strategic View
Automakers say higher foreign-exchange, component and logistics costs have required repeated price increases, making certified used cars increasingly important.
Market Caution
Higher prices may push some buyers out of lower new-car price bands, although the articles do not quantify the number of customers affected.
Key facts
- BMW pre-owned growth
- BMW India's pre-owned sales increased 54% year-on-year in the first half of 2026.
- Mercedes-Benz performance
- Mercedes-Benz India's used-car business grew at a double-digit pace.
- Audi used sales
- Audi India sold about 4,500 certified pre-owned cars in 2025.
- Audi retail network
- Audi Approved:plus outlets expanded from seven in 2020 to 27.
- Currency movement
- The rupee fell 15.44% against the euro in 2025 and another 4% through August 11, for an overall decline of about 19% in nearly 20 months.
- Price increases
- Dealers estimated that some entry-level models rose by about Rs 3 lakh, while certain top-end cars rose by Rs 35 lakh to Rs 40 lakh over roughly a year.
- Audi customer retention
- About one in three new Audis sold in India is bought by an existing customer.
Quotes
Balbir Singh Dhillon
Head of Audi India
“Mercedes‑Benz vehicles – both internal combustion engine and battery electric vehicles – command comparatively high residual values in the market owing to less availability in the organised market, due to longer ownership cycles.”
rediff.com
“New‑car prices are constantly increasing. We raised prices several times last year and have already taken two price increases this year.”
rediff.com
Sources
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