Rising prices of new luxury vehicles and a weakened euro are driving Indian buyers towards certified pre-owned cars, with BMW, Mercedes-Benz, and Audi experiencing notable growth in their used-car segments amid currency and cost pressures.
Rising prices for new luxury cars and a weaker euro-linked import cost environment are reshaping India’s premium auto market, nudging more buyers towards certified pre-owned vehicles. BMW India’s pre-owned sales jumped 54% year on year in the first half of 2026, while Mercedes-Benz India said its used-car business continued to grow at a double-digit pace. Audi India, meanwhile, sold about 4,500 pre-owned cars in 2025, roughly one used vehicle for every new Audi sold.
The shift comes after a prolonged run of price increases across the three leading German brands. The rupee fell 15.44% against the euro in 2025 and another 4% through August 11 this year, leaving it down about 19% over nearly 20 months. Luxury carmakers say they have absorbed only part of the higher costs linked to foreign exchange, imported components, logistics and other inputs, with dealers estimating that prices have risen by about ₹3 lakh on some entry-level models and ₹35 lakh to ₹40 lakh on certain top-end cars over the past year or so, depending on the variant.
Mercedes-Benz, BMW and Audi have each raised prices several times since early 2025. That has pushed some new models into higher brackets and made certified pre-owned programmes more important to the brands’ sales strategies. Audi India head Balbir Singh Dhillon said new-car prices are rising steadily and noted that the company had already taken two price increases this year. He said the Approved:plus network helps Audi remain in the ₹30 lakh to ₹60 lakh market even when starting prices for new cars move towards ₹60 lakh.
Executives at BMW and Mercedes-Benz described pre-owned operations as both a sales channel and a retention tool. BMW Group India said forex movements remain a major challenge, but demand for new and used vehicles is still strong. The company’s new-car sales rose 17% in the first half of 2026 and it expects double-digit growth for the full year, while BMW Premium Selection expanded even faster. Mercedes-Benz India said residual values are being supported by limited organised supply and disciplined pricing, adding that its pre-owned business is helping broaden the customer base, improve retention and offer an entry point into luxury ownership. The company has also been posting record sales in 2026, with first-half retail volumes of 9,768 units, according to separate industry reports.
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