BMW India’s pre-owned sales surged 54 per cent year-on-year in the first half of 2026, while Mercedes-Benz India’s used-car business grew at a double-digit pace. Audi India sold about 4,500 pre-owned cars in 2025, nearly one used vehicle for every new Audi sold.

The rupee fell 15.44 per cent against the euro in 2025 and another 4 per cent through August 11 this year. In nearly 20 months, the domestic currency is down around 19 per cent against the Eurozone currency. Luxury-car makers say they have absorbed only part of the higher costs from currency movements, imported components, logistics and other inputs.

That has triggered repeated price increases from India’s three leading German luxury brands since early 2025. Dealers estimate that prices have risen by about ₹3 lakh for some entry-level models and ₹35-40 lakh for certain top-end cars over the past year or so, depending on the model and variant. 

Mercedes-Benz raised prices by up to 3 per cent in January 2025 and announced another increase of as much as 3 per cent in two phases in June and September last year.

The hikes continued this year. Mercedes-Benz raised prices by about 2 per cent in January and April. BMW increased prices by 2-3 per cent in January, followed by hikes of up to 2 per cent in April and July. Audi raised prices by as much as 2 per cent in April.

As new cars move into higher price brackets, certified pre-owned programmes are helping luxury brands retain aspirational buyers while creating a pool of customers who may eventually upgrade to new vehicles.

Audi India’s certified pre-owned sales have climbed from fewer than 500 vehicles in 2020 to about 4,500 in 2025, while its Audi Approved:plus network expanded from seven outlets to 27. “New-car prices are constantly increasing. We raised prices several times last year and have already taken two price increases this year,” said Audi India head Balbir Singh Dhillon.

New-generation vehicles will become more expensive as they add technology and features, he said.

The price increases are also pushing new cars out of lower price bands. If the starting price of a new Audi rises to about ₹60 lakh, for instance, Audi Approved:plus allows the company to serve customers in the ₹30-60 lakh segment. “Audi Approved:plus allows us to participate in that market,” Dhillon said, adding, “The pre-owned operation is therefore about more than generating additional sales. It allows Audi to serve a segment that rising new-car prices would otherwise force the brand to vacate.”

BMW India also cited foreign-exchange movements as a significant challenge, though it said demand for both new and pre-owned vehicles remained strong. “The increasing forex rates are a big challenge, and we have implemented price hikes to absorb that partially. Most of our customers come from the business class, so geopolitical and macroeconomic impacts do influence sentiment,” stated BMW Group India.

BMW’s new-car sales rose 17 per cent in the first half of 2026, against its estimate of about 4 per cent growth for the overall luxury-car market. Its BMW Premium Selection business grew much faster, at 54 per cent.

The company expects double-digit growth in new-car sales for the full year.

Industry estimates for luxury-market growth vary. Audi India estimates the segment grew 7-8 per cent in the first half of 2026. Audi itself declined during the period but expects to recover some ground in the second half and finish the year broadly flat.

Mercedes-Benz India said strong residual values were supporting its pre-owned business. “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,” said Santosh Iyer, managing director and chief executive officer of Mercedes-Benz India.

“With high product substance and consistent pricing discipline, we have been able to offer higher residual values to our customers. We have witnessed steady demand for our new cars, and this gets reflected in demand for Mercedes-Benz pre-owned cars as well,” he said.

Iyer called the pre-owned operation an important strategic pillar for Mercedes-Benz, with the business growing in double digits. “Our pre-owned business is an important strategic pillar, growing in double digits and offering customers a wide range of certified cars to upgrade, with complete transparency and assurance of best value,” he said.

He further said that the pre-owned cars business allows the company to widen “the customer funnel”, improve retention, and protect the residual value, while “offering aspirational luxury ownership value to first-time luxury buyers”.

BMW similarly said certified used cars were increasingly becoming a stepping stone into luxury ownership, particularly for younger buyers. Customers are also becoming more discerning, looking beyond price to service history, warranty coverage, running costs, vehicle condition and resale value.

A pre-owned BMW gives customers a chance to experience the brand’s products, sales and after-sales services before potentially upgrading to a new vehicle, the company said.

Audi follows a similar strategy. About one in three new Audis sold in India is bought by an existing customer, making the pre-owned business an additional source of buyers who could eventually move to a new Audi.

Currency-driven price increases alone do not establish a direct shift from new to used vehicles. But as the price gap widens, manufacturers say certified pre-owned cars are becoming increasingly important for customers who might otherwise be priced out of the luxury market.