Luxury MPVs are gaining popularity among affluent Indian buyers, with their share rising from 4.6% in 2023 to 8.9% in 2026, while SUVs continue to account for over 80% of the premium vehicle market.
Highlights
- Luxury MPVs’ market share rises from 4.6% in 2023 to 8.9% in 2026.
- MPV registrations increase from 2,503 units to 4,304 units.
- SUVs continue to dominate with an 80.1% share of the luxury car market.
- Sedan market share declines from 16.2% to 7.8%.
- Average weighted retail price of luxury MPVs rises to ₹95.2 lakh.
- Luxury buyers increasingly prefer spacious interiors, comfort and premium features.
New Delhi, November 1, 2026: India’s luxury automobile market is witnessing a significant shift in consumer preferences, with multi-purpose vehicles (MPVs) emerging as one of the fastest-growing segments. Luxury MPVs have nearly doubled their market share over the past three years, reflecting rising demand for spacious, comfortable and feature-rich vehicles.
According to registration data from JATO Dynamics, the share of MPVs in India’s luxury car market increased from 4.6% in 2023 to 8.9% during January-September 2026.
Luxury MPV Registrations Rise Sharply
Luxury MPV registrations increased from 2,503 units in 2023 to 4,304 units during the first nine months of 2026.
The segment’s growth highlights a shift among affluent Indian consumers who increasingly prefer vehicles offering additional space, flexible seating arrangements and premium comfort.
The average weighted retail price of luxury MPVs also increased from ₹57.4 lakh in 2023 to ₹95.2 lakh in 2026, indicating growing demand for higher-priced models.
SUVs Continue to Dominate Luxury Market
Despite the growing popularity of MPVs, sport utility vehicles (SUVs) remain the dominant category in India’s luxury automobile market.
SUVs accounted for 80.1% of the market during January-September 2026, compared with 73.8% in 2025 and 78.3% in 2023.
Meanwhile, sedans continued to lose ground, with their market share declining from 16.2% in 2023 to 7.8% in 2026.
The figures suggest that buyers are increasingly moving away from traditional luxury sedans towards SUVs and premium MPVs.
Premium Buyers Prioritise Comfort
Industry executives say luxury MPVs are attracting buyers who prioritise spacious interiors, comfortable seating and convenience.
These vehicles are particularly appealing to customers seeking chauffeur-driven mobility, family travel and premium passenger experiences.
The growing demand is also encouraging manufacturers to introduce vehicles with advanced technology, flexible cabin configurations and luxury-focused features.
Luxury MPVs Become a Growing Opportunity
The increasing popularity of premium MPVs is creating new opportunities for automakers in India’s luxury vehicle segment.
Manufacturers are focusing on comfort, technology and premium features to attract high-income customers.
Industry observers expect the segment to remain an important growth opportunity as consumer preferences evolve.
With SUVs maintaining their leadership and MPVs gaining ground, India’s luxury automobile market is increasingly shifting towards larger and more versatile vehicles.
