Luxury Car Ownership in India: Real Costs Explained (Complete Guide)
- EPA
- Mar 18, 2025
- 3 min read
Owning a luxury car in India is a dream for many. Brands like BMW, Mercedes-Benz, Audi, Porsche, Jaguar, and Land Rover offer unmatched comfort, performance, and prestige.
But behind the luxury lies an important question:
👉 What is the real cost of owning a luxury car in India?
Most buyers focus only on the purchase price, but the actual cost of ownership includes maintenance, repairs, insurance, fuel, depreciation, and more.
In this blog, we break down the real costs of luxury car ownership in India in a simple and practical way.
1) Purchase Cost: Just the Beginning
Luxury cars in India typically cost:
Entry-level luxury cars: ₹40–70 lakh
Mid-range luxury cars: ₹70 lakh–₹1.5 crore
High-end luxury cars: ₹1.5–5 crore+
But the purchase price is only the first step.
2) Maintenance & Servicing Costs
Luxury cars require specialized servicing.
Annual Maintenance Cost (India)
Brand | Average Annual Maintenance Cost |
BMW | ₹80,000 – ₹2,50,000 |
Mercedes-Benz | ₹80,000 – ₹3,00,000 |
Audi | ₹60,000 – ₹2,00,000 |
Jaguar / Land Rover | ₹80,000 – ₹3,50,000 |
Porsche | ₹100,000 – ₹5,00,000 |
💡 Tip: Servicing at independent luxury workshops can reduce costs by up to 40%.
3) Repair Costs: The Hidden Expense
Unexpected repairs are common after 4–6 years of ownership.
Typical Repair Costs (India)
Brake pads & discs: ₹40,000 – ₹1,50,000
Suspension repairs: ₹80,000 – ₹3,00,000
Gearbox repairs: ₹2 – ₹8 lakh
Engine repairs: ₹3 – ₹15 lakh
Electronic modules: ₹50,000 – ₹4 lakh
👉 This is why preventive maintenance is critical.
4) Insurance Costs
Luxury car insurance is significantly higher.
Annual insurance premium: ₹1.5 – 4% of car value
Example: ₹80 lakh car → ₹1.2 – 3.2 lakh per year
Factors affecting insurance cost:
Car value
Brand and model
Location (metro cities like Pune, Mumbai, Delhi)
Claim history
5) Fuel Costs
Luxury cars usually have powerful engines and lower mileage.
Average mileage in India:
Petrol luxury cars: 6–10 km/l
Diesel luxury cars: 10–15 km/l
Example:
If you drive 10,000 km/year:
Fuel cost: ₹1 – 2.5 lakh annually (depending on fuel type and engine)
6) Depreciation: The Biggest Cost
Depreciation is often the largest hidden cost.
Typical depreciation rates in India:
1st year: 15–25%
3 years: 35–50%
5 years: 50–65%
8–10 years: 70–80%
👉 Luxury cars lose value faster than mass-market cars.
7) Tyres and Consumables
Luxury cars use high-performance tyres and parts.
Typical costs:
Tyres (set of 4): ₹60,000 – ₹3,00,000
Battery: ₹25,000 – ₹80,000
Engine oil & filters: ₹20,000 – ₹60,000
8) Taxes & Registration
Luxury cars attract higher taxes.
Road tax & registration: 10–20% of car price (varies by state)
Green tax (for older cars in some cities)
9) Cost of Convenience & Premium Services
Additional expenses include:
Extended warranty packages
Service packages
Detailing & ceramic coating
Pick-up & drop services
Parking & security
10) Total Cost of Ownership (TCO): Real Example
Let’s take an example of a ₹80 lakh luxury car in India.
5-Year Ownership Cost Estimate:
Purchase price: ₹80,00,000
Maintenance & repairs: ₹8 – 15 lakh
Insurance: ₹8 – 12 lakh
Fuel: ₹6 – 12 lakh
Depreciation: ₹40 – 50 lakh
👉 Total 5-year cost: ₹1.4 – 1.7 crore (approx.)
💡 Reality check:The cost of ownership can be nearly double the purchase price over time.
How to Reduce Luxury Car Ownership Costs in India
Here are smart ways to save money:
Choose independent luxury car workshops for maintenance
Use OEM parts instead of only genuine parts
Follow preventive maintenance schedules
Buy extended warranty wisely
Avoid ignoring small issues
Drive responsibly
Final Thoughts
Luxury car ownership in India is rewarding but expensive. Understanding the real costs helps you make smarter decisions and avoid financial surprises.
If you maintain your luxury car properly, you can enjoy premium performance without unnecessary expenses.
