Odisha's Luxury Car Market Shifts into High Gear
A decade ago, the idea of selling a supercar in Odisha was nearly unimaginable. Today, premium dealerships report receiving two to three inquiries for such high-end vehicles every single quarter. This remarkable transformation highlights the rapid growth of Odisha's luxury automobile sector, fueled by rising disposable incomes, significant improvements in road infrastructure, and evolving consumer aspirations among the state's urban elite.
The Data Driving the Demand
According to the latest VAHAN registration data for 2025, BMW emerged as the top-selling luxury brand in Odisha, with 192 units sold—a notable increase from 153 units in 2024. Sales demonstrated consistent strength throughout the year, culminating in a record fourth quarter with 46 units sold. The major urban centers of Bhubaneswar, Cuttack, Rourkela, and Sambalpur remained the primary markets for the brand.
"Odisha has marched ahead as a luxury car market faster than anticipated," stated Srikant Acharya, Sales Manager at BMW Bhubaneswar. "Newer models featuring hybrid and electric options are particularly appealing to younger buyers who seek a combination of high performance and environmental sustainability." He added that growth is projected to continue its upward trajectory this year.
Mercedes-Benz followed closely behind with 188 units sold in 2025, up from 169 the previous year. While sales saw a dip in the second quarter, they stabilized strongly in the latter half of the year. Bhubaneswar continued to lead demand, followed by Cuttack, Khurda, and Rourkela. A sales official from T&T Motors Bhubaneswar noted significant pre-launch interest, saying, "The Mercedes-Benz CLA Electric Sedan is already generating advance inquiries even before official bookings have opened."
Broader Market Expansion and Key Drivers
The luxury surge extends beyond the German giants. Jaguar Land Rover recorded 92 unit sales, while Volvo sold 22 units—a steady increase from 14 in 2024, driven largely by first-time luxury buyers in cities like Bhubaneswar, Khurda, Balasore, and Bhadrak. "Customers in smaller cities such as Balasore and Bhadrak are now opting for luxury four-wheelers, primarily due to vastly improved road networks," explained a sales official.
Perhaps most indicative of the market's maturation is the entry of ultra-luxury marques. Lamborghini, the Italian supercar manufacturer, sold three units in 2025, up from two in 2024, with registrations in Bhubaneswar, Balasore, and Sambalpur. This signals the emergence of a new cohort of ultra-high-net-worth individuals in the state.
"Ten years ago, selling a supercar in Odisha was almost unheard of. Now, we get two to three inquiries every quarter," remarked Abhijit Choudhary, a senior consultant at a premium multi-brand dealership.
The EU-India Trade Deal: A Potential Game-Changer
A significant external factor poised to reshape the landscape is the recently signed India-European Union trade agreement. The deal slashes import duties on EU-made cars from a staggering 110% down to 40%. Market analysts predict this substantial reduction will make European luxury brands—including Mercedes-Benz, BMW, Audi, Porsche, Ferrari, Lamborghini, and Rolls-Royce—significantly more affordable, potentially unleashing a new wave of demand, especially in urban centers like Bhubaneswar where uptake is already rising.
Economic Foundations and Evolving Consumer Behavior
The rise of the luxury car market is firmly rooted in Odisha's economic growth. Metros like Bhubaneswar have witnessed a surge in high-paying jobs, wealth creation from entrepreneurship, and affluence driven by real estate. "I always dreamt of owning a luxury SUV, but 2025 felt like the right year," shared Vikash Mohanty, a Bhubaneswar-based businessman who recently purchased a Volvo EX90.
Market analyst Biswas Jena points to infrastructure as a key enabler. "Upgraded highway corridors have dramatically improved the driving experience, making luxury sedans a more practical and enjoyable proposition," he said. "Furthermore, with multiple electric luxury models launched in 2025, buyers increasingly view premium EVs as reliable long-term investments." He added that in cities like Cuttack and Bhubaneswar, luxury car purchases are increasingly tied to lifestyle and social positioning.
The Secondary Market and Future Outlook
The growth is not limited to new vehicles. The certified pre-owned luxury car market in Bhubaneswar is also expanding steadily. Dealers such as Car Mart, Car BAAZAR, and Luxury Automotive Odisha offer a range of vehicles from BMW, Mercedes-Benz, and Audi, with prices starting around ₹18-20 lakh for entry-level models and reaching up to ₹1 crore for high-end variants like the Mercedes GLS.
Looking ahead, dealers and analysts are optimistic. With demand rising across all segments—from compact premium SUVs to top-tier electric sedans and supercars—Odisha's luxury car market is undeniably entering a new era.
"Looking at current trends, dealers can expect at least a 20-25% jump in luxury car sales this year," projected Bramhananda Misra, a leading auto market analyst based in Bhubaneswar. "Odisha is no longer a fringe market. It is firmly on the luxury map. The sales data is speaking the reality."
As more electric vehicle models arrive and broader financial confidence builds following the EU-India deal, 2026 may well see the luxury car market in Odisha shift into an even higher gear.
