The brand with the four rings is facing headwinds as rising prices, currency fluctuations, and global uncertainties continue to weigh on demand.
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The brand with the four rings is facing headwinds as rising prices, currency fluctuations, and global uncertainties continue to weigh on demand.
Audi India reported retail sales of 2,128 units in the first half (January–June) of 2025, as it faced a challenging market environment shaped by foreign exchange fluctuations and broader geopolitical uncertainties. The brand, which once held a strong position in the Indian luxury vehicle segment, has seen its performance stabilise but not significantly grow, especially in comparison to key rivals.
The German carmaker acknowledged a slower first half but highlighted resilience in its pre-owned car business. Audi Approved: plus, the brand’s certified used car programme, recorded a 10 per cent growth in H1 2025, continuing its steady momentum. The company currently operates 26 Audi Approved facilities across the country and plans to expand further during the remainder of the year.
Balbir Singh Dhillon, Head of Audi India, said, “While H1 2025 presented unique market challenges, we have used this period to strengthen our foundation for sustainable growth. By prioritising a luxury-first approach and delivering exceptional customer experiences, we continue to reinforce brand loyalty. We see growth potential in the luxury segment in the second half of the year, fueled by new product introductions, our digital-first approach and unwavering focus on customer satisfaction.”
In line with its global sustainability ambitions, Audi India also continues to invest in EV infrastructure. Under its ‘Charge My Audi’ initiative, the brand has surpassed 6,500 publicly accessible charging points across India. This expansion aims to support its current EV portfolio, which includes models like the Q8 e-tron, Q8 Sportback e-tron, e-tron GT, and RS e-tron GT.
Also Read: Auto Sales March 2025: SUV Demand Powers Audi India to 17% Growth in Q1 2025
Despite these efforts, Audi India’s performance lags behind other major players in the luxury car market. Mercedes-Benz India retained its leadership position, recording a 4 per cent year-on-year sales growth in FY2025. Strong demand for its top-end vehicle (TEV) portfolio — including the S-Class, Maybach range, and G-Class — led to a 34 per cent increase in the TEV segment alone. The company has also increased its focus on electrification, with electric models accounting for 7 per cent of total volumes. The locally assembled EQS SUV emerged as the brand’s top-selling EV, outperforming more affordable models.
BMW India, which took the second position in the luxury segment, also posted a 4 per cent growth in FY2025. The 3 Series LWB and the newly launched 5 Series LWB were key contributors in the sedan category, while the X1 and X5 led SUV sales. BMW's EV portfolio also gained traction, with the iX1 and i7 helping the brand achieve 10% of its total sales through electric models — the highest EV share in the segment.
Also Read: Third-Gen Audi Q3 Revealed; India Launch Likely In 2026
Jaguar Land Rover (JLR) outpaced Audi to claim the third spot in the Indian luxury market. JLR reported 6,183 units sold in FY2025, marking an impressive 40 per cent year-on-year growth — the fastest among all luxury car brands in India. The Defender SUV led the charge with a 90 per cent increase in sales, while locally assembled models such as the Range Rover and Range Rover Sport posted significant growth of 72 per cent and 42 per cent, respectively.
Volvo India, in contrast, faced a downturn. The Swedish brand saw its sales decline by 18.6 per cent in FY2025 compared to the previous fiscal year, largely due to an ageing product lineup and limited dealership reach. However, Volvo's EV penetration was notable, with electric vehicles accounting for one-third of its sales. The upcoming EX30 electric crossover is expected to boost the brand’s prospects in FY2026.
Also Read: Audi Q7 Signature Edition Launched in India At ₹99.81 Lakh
Lexus India did not disclose specific sales numbers but reported a 19 per cent growth in FY2025, driven by the NX and RX SUVs. March 2025 marked its highest-ever monthly sales. The LM MPV also generated strong demand, contributing to the brand’s upward trend.
In contrast, Audi’s 2,128-unit H1 performance places it below its core rivals and even behind JLR, which has made significant strides in localisation and SUV-led growth. With relatively flat volume figures, Audi India’s near-term success will depend on how effectively it capitalises on the festive season, leverages its EV infrastructure, and differentiates its product offerings in a market that is increasingly leaning toward top-end luxury and electric mobility.
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