HNIs doubled in just 4 years, fuelling surge in luxury auto demand

India's millionaire households have nearly doubled to 8.7 lakh in four years, creating a runway for luxury car demand as wealth fuels aspirations and premium consumption

India’s high net-worth individuals (HNIs) or millionaire households have nearly do­u­bl­ed in just four years, a surge that is set to power the coun­try’s luxury car market, according to the Mercedes-Benz Hurun India Wealth Report 2025 and Lux­ury Consumer Survey 2025. 

The report estimates 871,700 Indian households with net worth above ₹8.5 crore ($1 million), up 90 per cent from 2021. These families now make up 0.31 per cent of Indian households, compared to 0.17 per cent four years ago, and the number is projected to double again within a decade. 

This wealth creation will have a direct impact on luxury consumption, particularly aut­o­mobiles. Mercedes-Benz Ind­ia’s MD & CEO, Santosh Iyer, said the brand has bec­ome a “symbol of social prestige, fin­ancial affl­u­ence and unm­atched desirability” in India.

The Mercedes-Benz Hurun India Index (MBHX) has surged nearly 200 per cent in recent years, emphasising the strong link between wealth creation and luxury demand. 

The survey of 150 Indian millionaires, with the average age of 32, revealed that luxury cars remain among the most aspirational assets. Preferences skewed towards digital-first lifestyles, global travel, and brand-conscious spending, with Rolex, Tanishq, Louis Vuitton, Taj, and Emirates topping the “Best of the Best” brands list. 

While China has about 5.1 million millionaire households and the US even more, Hurun India’s Founder and Chief Researcher Anas Rahman Junaid said India’s relatively modest 0.87 million base is “a runway for growth.” 

He projected the number to reach 1.7-2 million households by 2035, creating a massive opportunity for global luxury brands, particularly automakers. 

“Luxury in India today is far more than indulgence, it represents aspiration, innovation, and the confidence of a new India,” Junaid said. “As wealth grows, so does demand for premium experiences.” 

With states such as Maharashtra, Delhi, Karnataka, and Tamil Nadu leading in millionaire density and income tax contributions, automakers expect luxury car sales to expand fastest in these markets. Analysts note that the combination of a young demographic, rising entrepreneurship, and global exposure makes India one of the fastest-growing luxury auto hubs in the world.