Mercedes-Benz Hurun India study, ETBrandEquity

A hyperrealistic wide-angle street scene of Mumbai at golden hour. A luxury car and affluent couple dominate the foreground, surrounded by upscale boutiques and iconic architecture. India is home to 8,71,700 millionaire households, a 90 per cent increase since 2021, according to the inaugural Mercedes-Benz Hurun India Wealth Report 2025 and Luxury Consumer Survey 2025. The report, a collaboration between Mercedes-Benz and Hurun India, highlights a significant rise in affluence and a new index, the Mercedes-Benz Hurun India Index (MBHX), which grew by nearly 200 per cent since 2018.

The report reveals that the number of millionaire households (with a net worth of at least INR 8.5 Crore) has more than doubled in less than a decade. These affluent families now represent about 0.31% of all Indian households, up from 0.17% in 2021.

India’s luxury market is witnessing a seismic shift, with a new generation of high-net-worth individuals (HNWIs) driving a surge in spending that is reshaping the consumer landscape. A Wealth Report and Luxury Consumer Survey 2025 by Mercedes-Benz and Hurun India indicates a strong correlation between the nation’s economic growth and a burgeoning appetite for luxury goods and experiences.

The findings paint a picture of a dynamic market where traditional markers of wealth are being redefined by younger, digitally savvy consumers. The study highlights that while Mumbai remains the undisputed millionaire capital of India, wealth creation is becoming more democratised, with Tier-2 and Tier-3 cities emerging as key growth drivers.

“The wealth creation in India is not just a statistical phenomenon; it’s a tangible reality visible in the luxury market,” stated Anas Rahman Junaid, founder and chief researcher, Hurun India. “The correlation between the ‘Mercedes Wealth Index’ and India’s GDP growth and stock market performance clearly shows that luxury car sales are an accurate barometer of the country’s economic health,” added Santosh Iyer, MD & CEO, Mercedes-Benz India.

The data further reveals a consumer base that is not only growing in numbers but also in purchasing power. A significant portion of HNWIs are accelerating their upgrade cycles for luxury cars, with many opting for new models every four years, down from the previous five-year average. This trend, combined with a willingness to pay higher prices for the latest technology, is creating a robust resale market for luxury goods, added Iyer.

Key Trends

• Mumbai Dominance: The city is home to the largest number of Indian millionaires, with a luxury car penetration rate of 5%, similar to developed markets.
• Rapid Wealth Creation: The number of millionaire households in India is growing, but we trail China and the US by far.
• Upward Mobility: Approximately 45% of individuals are moving into the “upward mobility” bracket, with a notable 15% converting from millionaire status to ultra-high-net-worth individuals.
• Luxury Brands: Rolex leads in luxury watches, and Gucci and Louis Vuitton are top in accessories. Tanishq is the most preferred jewelry retailer in India, while Tiffany & Co. is the top international brand.
• Luxury Travel: Emirates is the preferred airline for luxury travel, and Taj Hotels lead in hospitality.
• Digital Adoption: A significant number of luxury consumers are increasingly engaging with digital platforms for research and purchases. This trend, accelerated by the pandemic, has led to increased price transparency and a shift away from traditional push sales models.
• Financial Freedom: 27% of respondents said INR 50 crore is enough to feel financially free, while 25% cited INR 10 crore and 20% cited INR 200 crore.

Anas Rahman Junaid, Founder & Chief Researcher, Hurun India, noted that while wealth is spreading, the climb to the very top remains steep, with only 0.01% of millionaires making it to billionaire status. Santosh Iyer, MD & CEO, Mercedes-Benz India, highlighted the report’s reflection of India’s economic resilience and the soaring aspirations of its young generation. He stated that Mercedes-Benz remains optimistic about India’s long-term economic outlook.

• Published On Sep 18, 2025 at 10:08 PM IST

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