Archive · 18 Jul 2026
Luxury MPVs Overtake Sedans in India's Market
In India, luxury cars are becoming more popular, and a new type of car called a Multi-Purpose Vehicle (MPV) is gaining attention.
These MPVs are like moving lounges, offering lots of space and comfort.
Companies like Toyota, Mercedes-Benz, and Lexus are selling these luxury MPVs, which are priced very high.
People who buy these cars usually have multiple luxury vehicles and want a comfortable ride that doesn't compromise on space and luxury.
These MPVs have special features like big touchscreens, comfortable seats with massage and ventilation, and high-end audio systems.
The market for these luxury MPVs is growing, and more companies are expected to introduce similar vehicles in the future.
Luxury MPVs are gaining popularity in India's luxury car market, which is expected to grow from $1.44 billion in 2025 to $1.96 billion by 2031.
Toyota introduced the Vellfire in 2019, Mercedes-Benz reintroduced the V-Class in 2026, and Lexus introduced the LMh 350 in 2024.
These luxury MPVs are priced between ₹1.2 crore and ₹2.2 crore ex-showroom.
Sales of these MPVs have shown significant growth, with Toyota Vellfire selling 5000 units and Lexus LMh 350 recording 40% growth in November 2025.
Luxury MPVs offer features like large touchscreens, reclining captain seats with massage and ventilation, high-end audio systems, and panoramic sunroofs.
- Who
- Luxury car manufacturers like Toyota, Mercedes-Benz, and Lexus
- What
- Luxury Multi-Purpose Vehicles (MPVs) are gaining popularity in India
- When
- Toyota Vellfire introduced in 2019, Mercedes-Benz V-Class reintroduced in 2026, Lexus LMh 350 introduced in 2024
- Where
- India
- Why
- Growing preference for private luxury lounges on wheels and practical luxury
- Market Size
- Expected to grow from $1.44 billion in 2025 to $1.96 billion by 2031
- Growth Rate
- 5.16% CAGR
- Toyota Vellfire Price
- ₹1.2-1.3 crore ex-showroom
- Mercedes-Benz V-Class Price
- ₹1.4 crore ex-showroom
- Lexus LMh 350 Price
- ₹2.2 crore ex-showroom
- Toyota Vellfire Sales
- 5000 units sold
- Lexus LMh 350 Growth
- 40% growth in November 2025, 15% cumulative growth from January to November 2025
- Mercedes-Benz India Sales
- 9,768 vehicles in H1 2026, up 9% year-on-year
- Unit Sales Increase
- From 493 in 2020 to about 2,485 units in 2025
- MG M9 Price
- ₹80 Lakh ex-showroom