Luxury surge: Odisha's car market surged in 2025, with BMW, Mercedes-Benz leading sales

10 yrs ago, selling a supercar in Odisha was almost unheard of. Now, dealers get 2-3 inquiries every quarter. As disposable income increases & roads improve, TOI looks at how the luxury car market is growing in the state

Odisha’s luxury car market witnessed a dramatic acceleration in 2025, signalling a clear shift in the aspirations of its growing urban elite. Once considered a marginal segment, the premium and super‑luxury car category has expanded rapidly across Bhubaneswar, Cuttack, Rourkela and Sambalpur — with even rare badges like Lamborghini making brief appearances on Odisha’s roads.

The India–European Union trade deal signed recently is further poised to reshape the luxury car market by sharply reducing import duties on high‑end European vehicles, making them significantly more affordable for buyers. The agreement slashes tariffs on EU‑made cars — previously as high as 110% — down to 40%. This, according to experts, means that luxury cars such as Mercedes‑Benz, BMW, Audi, Porsche, Ferrari, Lamborghini and Rolls‑Royce, could see stronger demand, particularly in urban centres like Bhubaneswar where luxury car uptake is already rising.

As per VAHAN’s data, BMW topped the luxury chart in Odisha with 192 units sold in 2025, up from 153 in 2024. Sales remained steady across quarters — 34 in Q1, 42 in Q2, 31 in Q3 and a record 46 in Q4 - showing a strong year‑end surge. Bhubaneswar, Cuttack, Rourkela and Sambalpur continued to be the company’s biggest markets.The rise also coincides with several new models being launched for the Indian market. “Odisha has marched ahead as a luxury car market faster than expected. Newer models with hybrid and electric options are drawing in young buyers who want both performance and sustainability,” Srikant Acharya, sales manager at BMW (Bhubaneswar), said, adding that the growth is expected to be higher this year too.

Mercedes-Benz followed closely with 188 units sold in 2025, up from 169 units in 2024. The brand saw 50 sales in Q1, a dip to 27 in Q2 and an even 46 units each in Q3 and Q4. Bhubaneswar once again dominated demand, trailing Cuttack, Khurda and Rourkela in the state. “The Mercedes-Benz CLA Electric Sedan is generating advance enquiries even before official bookings,” a sales official from T&T Motors Bhubaneswar said.

Jaguar Land Rover recorded 92 units sales in 2025, up marginally from 90. Volvo sold 22 units, compared to 14 in 2024, showing a steady growth curve driven by first‑time luxury buyers in Bhubaneswar, Khurda, Balasore and Bhadrak. “Customers in smaller cities like Balasore and Bhadrak are now opting for luxury four-wheelers because of improved road networks,” the sales official added.

While still rare, Odisha also saw purchases of Lamborghini hinting at a rising cohort of ultra‑high‑net‑worth individuals willing to go beyond traditional luxury. The Italian luxury sports car manufacturer sold two units in 2024 and three in 2025 and the sales were registered in Bhubaneswar, Balasore and Sambalpur.

“Ten years ago, selling a supercar in Odisha was almost unheard of. Now, we get two to three inquiries every quarter,” said Abhijit Choudhary, a senior consultant from a premium multi-brand dealership.

According to market analysts, Odisha’s metros, especially Bhubaneswar, have seen a rise in high-paying jobs, entrepreneur-led wealth creation and real estate-driven affluence. “I always dreamt of owning a luxury SUV, but 2025 felt like the right year,” said Vikash Mohanty, a Bhubaneswar-based businessman who recently purchased a Volvo EX90.

The used luxury car market in Bhubaneswar is also growing steadily, with options ranging from BMW and Mercedes-Benz to Audi. Top dealers like Car Mart, Car BAAZAR, and Luxury Automotive Odisha offer certified pre-owned vehicles, with prices typically starting around Rs 18 to 20 lakh for entry-level BMWs and going up to Rs 1 crore for high-end models like Mercedes GLS.

Biswas Jena, a market analyst, said that the upgraded highway corridors have improved driving experiences, making luxury sedans more practical. “With multiple electric luxury models launched in 2025, buyers see premium EVs as reliable long-term investments,” Jena said, adding that luxury purchases in cities like Cuttack and Bhubaneswar are increasingly tied to lifestyle positioning.

With demand rising across segments — from compact premium SUVs to top-tier electric sedans and supercars — Odisha’s luxury car market is entering a new era. Dealers predict that 2026 may see even higher numbers as more EVs arrive and broader financial confidence returns with the EU-India deal now.

“Looking at current trends, dealers can expect at least a 20-25% jump in luxury car sales this year. Odisha is no longer a fringe market. It is firmly on the luxury map. The sales data is speaking the reality,” said Bramhananda Misra, a leading auto market analyst based in Bhubaneswar.