India's electric vehicle (EV) market is experiencing significant growth, particularly in the premium segment. In 2024, out of 90,354 EV four-wheelers registered nationwide, 6.6% (5,926 units) were premium models priced above ₹20 lakh. This marks a substantial increase from 2.3% two years prior, indicating a tripling of the premium EV market share.

Leading this surge are manufacturers like China's BYD and German luxury automakers BMW and Mercedes-Benz. Mercedes-Benz India, for instance, reported an 82% increase in EV sales in 2024, attributed to the introduction of four new electric models.

The overall EV market in India has expanded rapidly, with total EV four-wheeler sales increasing from 33,215 units in 2023 to 90,354 units in 2024. This growth reflects a broader consumer shift towards electric mobility, encompassing both mass-market and premium segments.

The rising demand for premium EVs has also attracted the attention of global players like Tesla. The company is reportedly planning to enter the Indian market, having selected locations for showrooms in New Delhi and Mumbai. This move could further intensify competition in the premium EV sector and provide consumers with more options.

Despite challenges such as high import tariffs and infrastructure limitations, the premium EV market in India is poised for continued growth. The combination of increased consumer interest, expanded model offerings from luxury automakers, and potential new entrants like Tesla suggests a robust future for this segment.