What defines a luxury car, if one might ask? It would be the superior comfort, host of equipment, top-notch ride quality, and an added boost to one’s social status. Cheap, however, would not always go hand in hand considering these beauties; since even the entry-level models have a starting price range of 7 digits. Still, the cheapest luxury cars in India is an often-searched phrase on the internet – basically looking for the ideal & affordable luxury car one can own.

In the post-independence era, almost every luxury car manufacturer has found their way to the Indian market regarding the growing demand for these luxury cars despite the heavy expense almost everyone asks for. On this note, it should be mentioned that luxury brands stand a notch higher than premium car brands – a fine line separating the two and their targeted audience as well. The heavy demand for owning a luxury car has pushed the automobile manufacturers, mainly of foreign origins, to introduce more affordable luxury cars in India. Thus, this article contains a list of budget luxury cars in India currently available on the market.

Top 10 Cheapest Luxury Cars in India: 2022

1. Skoda Octaviaskoda octavia cheapest luxury car in India

The newest iteration of Skoda Octavia is quite appealing to the eyes – aggressive, sleek, bold, and sharp than its predecessors. Moreover, Octavia is one of the cheapest premium cars in India at present. Priced at 26.3 lakhs (ex-showroom price), Octavia ticks almost all the right boxes one considers before owning a luxury sedan. Now in its 4th generation, Octavia offers huge interior space, draws power from a 2.0-liter TSI petrol engine, comprising an amalgamation of driving aids (parking sensors, hill hold assist, 600-liter boot space)  and safety measures (8 airbags, ABS with EBD), on top of being fully automatic with a 7-speed dual-clutch.

2. Audi Q2Audi Q2 cheapest luxury car in India

The dedication of Audi in building affordable luxury cars is unmatched and is one of the primary reasons why Audi cars, be it sedans or SUVs, are seen in abundance on Indian roads. Audi Q2 is among the low price luxury cars in India, excelling both in comfort and level of performance, and certainly upping one’s prestige.

Currently priced at 35.99 lakhs (ex-showroom price), this entry-level SUV of Audi is powered by a 2.0-liter TSI engine, has gripping torque generation of 180 bhp, comes with a host of modern features, and additionally, five trim options to choose from. Quattro AWD is a definite plus.

3. BMW 2 Series Gran CoupeBMW 2 series gran coupe - TestNDrive

Hailed as the best of cheapest luxury cars in India, BMW 2 Series Gran Coupe combines elegance with power. Almost all the cars of this German manufacturer are on the Wishlist of car enthusiasts, and yet, due to the high price tag, it remains a dream all their lives. However, this entry-level luxury car can be yours through dedicated work and is explicitly customized for the Indian marketplace.

It is practical in nature, available in both petrol and diesel engine options, offers enough cabin space with steady driving dynamics that is typical of BMW. All the characteristics – be it engine, drivetrain, braking, safety, features, and the stylistic game – have been optimized in one or another variant of 2 Series GC. It has a starting ex-showroom price of 39.95 lakhs.

4. Audi A4Audi A4 - TestNdrive

As already stressed before, Audi offers the cheapest luxury cars in India – a fact fully established despite many competitors. Audi A4, having an ex-showroom price of 40 lakhs, is the first output by the German manufacturer to the Indian market to test the waters regarding luxury cars. Suffice to say, in 2013. It was met with tremendous applause.

The latest version has blended both luxury and style into a composite whole. Deriving power from a 2.0-liter TSFI turbo petrol engine, A4 has enough power to roar and more than enough street presence to turn many heads.

5. Volvo XC40Volvo XC40 cheapest luxury car in India

The name ‘Volvo’ sounds familiar to us because, for decades, this Scandinavia-born has provided us with buses of utmost durability and safety. Volvo XC40, although relatively small in stature regarding the SUV segment, comes loaded with features and safety measures. A worthy rival of the BMW X1 and Audi Q3, it does justice to its legacy by being a true-blue luxury car. It is also one of the cheapest luxury cars in India (ex-showroom price: 41.2 lakhs) at the moment, offering five colors schemes, a 1969 cc potent petrol engine, 7-speed automatic dual-clutch, dedicated cabin space with some sophisticated instrumentation.

6. Mercedes Benz A-Class LimousineMercedes Benz A Class Limousine - TestNdrive

Not the only brand to finely blend luxury, style, and power: but without Mercedes Benz, this list of cheapest luxury cars in India with not be justified. The Mercedes Benz A-Class Limousine is almost naturalized now, and multiple factors are behind it. To name a few, these would be – an affordable pricing range (43.6 lakhs ex-showroom price), above average mileage output (22 kmpl), two fuel options (petrol and diesel, both with automatic gearbox), a powerful engine with BS6 compliance, and above all, nationwide service centers whenever one’s in a pickle, if ever.

7. Jaguar XEJaguar XE - TestNdrive

With a starting ex-showroom price of 46.6 lakhs, Jaguar XE incorporates quite a number of new attributes and yet, manages to retain its signature persona. The XE is among the cheapest luxury cars in India – a feat that further expanded after being adopted by Tata Motors, which gave much consideration in contributing to India’s luxury car atmosphere. The XE has gained many stylistic upgrades from the higher-ups, now has an improved interior cabin. And as for the engine, both the petrol and diesel variant remains much or less the same, excluding the revamped suspensions.

8. BMW 5 SeriesBMW 5 Series - TestNdrive

The BMW 5 Series has an average ex-showroom price of 63.4 lakhs, has three variants to choose from, and both petrol and diesel engine options as per one’s preference. Until now, the latest facelift has enforced multiple desirable qualities that were standard only in the upper echelon models. It draws inspiration from the 7 series, includes proper safety and comfort features on top of the German maker’s signature output on both the interior and exterior. Rivaling cross-brand cars like the Mercedes E-Class, it is among the cheapest luxury cars in India at the present moment with high resale value and multiple after-sales purposes.

9. Mercedes Benz E-ClassMercedes Benz E-class - TestNdrive

Mercedes Benz E-Class, having an ex-showroom price of 64.6 lakhs. Available in three trim options, the E-Class has stayed in the game by constantly upgrading. It has seen good sales even in the pandemic. Its last facelift arrived in 2021, and along with it came extended space, replete with modern pieces of equipment and a powerful engine to roar through the streets. Easy to maneuver and a total city car, the E-Class and its superior counterparts assure to heighten the genre of luxury cars of the Indian marketplace.

10. Jaguar XFJaguar XF - cheapest luxury car in india

Finishing off this list of cheapest luxury cars in India by Jaguar XF. In a pithy statement, Jaguar XF is the big & better brother of the XE model. Much pricier (71.3 lakhs ex-showroom price), more elegant and refined (bigger cabin space, reworked bumper, double J design on headlights, aerodynamically fluid, larger air intake) – one look at XF, and you fall in love.

The 2016 XF is one of the first models to implement Ingenium engines. After Tata Motors naturalized the leaping cats, Jaguar XF had been holding the fort of the cheapest luxury cars in India. Now that the XE is also in vogue, XF has time to explore new grounds. Namely, the XFS and the XFR models are quite a leap forward.

Now that we have effectively summed up a list of the cheapest luxury cars in India, a note of awareness is due. You must know what your requirements are. Luxury cars should never be brought on a whim. Giving proper research and time is always a necessity. Also, the maintenance cost differs from brand to brand, from car to car. Your social image should always come secondary when your economic status is concerned.

If you’re looking for the cheapest luxury cars, you might also want to read our list of cheapest supercars in India.

Frequently Asked Questions

Which brand offers the best off-road cheapest luxury cars in India?

Off-roading demands a lot of toughness on the part of the driver and the vehicle. Therefore, Land Rover luxury cars will be the best option to choose from. However, Volvo cars take a close second position where toughness is involved.

Which is the cheapest luxury car in India?

Skoda Octavia will be the right answer if one follows the list. On this note, it should be mentioned that Audi Q2 is termed the same on many other websites.

Which luxury car is best in India?

The best luxury car, as per the price tag, list of features, and practicality are concerned. Couple it with one’s social prestige, it is the four rings, namely Audi Q2.

Can I buy a second-hand luxury car?

Yes, but some things first need to be seen. These would be proper inspection, checking for any after-sales modifications, legal certification, and of course, a driving test. After these, you are good to go.

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