Rupee fall drives luxury car price hikes, used car demand surges

BMW India's pre-owned car sales surged 54 per cent year-on-year in the first half of 2026, as repeated price hikes on new luxury vehicles push buyers towards certified used cars. Mercedes-Benz India's used-car business also grew at a double-digit pace, while Audi India sold about 4,500 pre-owned cars in 2025, nearly one for every new Audi sold.

The rupee has weakened about 19 per cent against the euro over nearly 20 months, forcing luxury car makers to raise prices repeatedly. Mercedes-Benz raised prices by up to 3 per cent in January and another 2 per cent in April this year. BMW increased prices by 2-3 per cent in January, followed by 2 per cent in April and July. Audi raised prices by up to 2 per cent in April. Dealers estimate prices have risen by Rs 3 lakh for some entry-level models and Rs 35-40 lakh for top-end cars over the past year.

Audi India head Balbir Singh Dhillon said pre-owned operations allow the brand to serve customers in the Rs 30-60 lakh range, a segment rising new-car prices would otherwise force it to vacate. BMW India said forex movements remain a significant challenge. BMW's new-car sales rose 17 per cent in the first half of 2026, while its pre-owned business grew 54 per cent.