New Delhi, April 14 -- Rising food inflation and falling wages have prompted urban consumers to hold back their car purchase plans in FY25, as evidenced by muted sales in the mass-market segment. However, the wealthy class continued their luxury shopping spree, with demand for premium cars remaining strong throughout the fiscal year.

Luxury carmakers sold 51,406 units in FY25, marking a 3% year-on-year (YoY) increase compared to 49,862 units in FY24, and setting a record for the highest sales in any fiscal year. This rise came even as the Indian economy struggled, with growth expected to hit a four-year low.

Mercedes-Benz India led the market with 18,928 units sold, marking its best-ever fiscal performance. The company's top-end luxury ...