From luxury cars to watches: Why India’s wealthy are spending more on ultra-premium products

India’s luxury market is moving beyond conventional status symbols as affluent consumers increasingly spend on products where craftsmanship, exclusivity, heritage and individuality matter as much as brand recognition.

The shift is visible across categories. Luxury cars have been attracting younger buyers and expanding into smaller Indian cities, while the market for high-end watches is seeing consumers trade up to more expensive and limited-production timepieces. In watches, the share of luxury and high-end sales rose from 48% in FY20 to 70% in FY25, as per recent data.

For watchmakers, the change is creating opportunities to introduce products that are built around design, mechanical expertise, limited production and a clearly defined identity.


Luxury consumption is moving up the value chain

India's growing affluent population has created a larger customer base for premium and luxury brands. A recent report identified rising consumer spending and younger generations as important drivers of India's luxury market, with watches, jewellery, fashion, travel and lifestyle products among the categories benefiting from the shift.

Luxury cars offer one indication of the changing consumer base. Mercedes-Benz sold more than 19,500 vehicles in India in 2024, up 12% from the previous year, with the company also reporting demand from younger consumers and buyers in smaller cities.

The same broad trend is emerging in watches, although the product serves a different purpose. A luxury car is a highly visible purchase, while a high-end mechanical watch can be a more personal expression of taste, knowledge and collecting interest. That distinction is becoming important as Indian consumers become more familiar with global luxury brands.

An official from CZARD, a watch brand that entered the Indian market in August 2026, said the changing customer mindset is creating room for brands that put greater emphasis on design, product architecture and the story behind a collection.

“India’s watch customer is becoming increasingly informed and discerning. The conversation is moving beyond the name on the dial to the movement, finishing, proportions, design language and the thinking behind a collection,” Senior Official from CZARD said.

Why watches are gaining ground

The Indian luxury watch market is increasingly being driven by consumers who are willing to pay for mechanical movements, design, heritage and limited availability. The shift is also visible at the higher end. India's Swiss watch market crossed ₹3,500 crore in 2025, while buyers have increasingly moved away from purely logo-driven purchases towards craftsmanship, heritage and understated design.

“CZARD's entry into the market reflects this changing environment. The brand launched in India on August 15, 2026, with a proposition spanning Geneva, Helsinki and Surat. Our first offering uses a chapter-based approach, with individually numbered watches forming part of a broader product story. For a new generation of luxury buyers, exclusivity is not only about owning something expensive. It is also about understanding what makes a particular product distinctive and why it exists,” the official said.

Scarcity becomes part of the product

This is where ultra-luxury differs from premiumisation. Premiumisation allows consumers to move from a mass-market product to a more expensive version. Ultra-luxury goes further by making scarcity itself part of the proposition.

“Our original chapter framework allowed 500 individually numbered pieces, running from 001 to 500. Each watch carries its number on the caseback, giving collectors a defined place within the particular release,” the official said. The founding chapter sold out within minutes of going live in India on August 15, according to the company.

The younger luxury consumer

The new luxury buyer is also changing the way brands communicate. India's millennials and Gen Z consumers are among the world's largest young demographic groups, and industry research has identified them as an important future customer base for luxury and premium products.

These consumers are also more likely to discover products digitally, compare brands globally and place greater emphasis on authenticity, craftsmanship and the experience surrounding a purchase.

That does not mean traditional luxury signals have disappeared. Brand recognition remains important. But it increasingly sits alongside other considerations. For some buyers, the question is no longer simply, “Which brand do you own?” It can be, “Why did you choose this particular product?”

That distinction is particularly relevant in watches, where two timepieces can carry very different levels of craftsmanship, scarcity and collector appeal despite both occupying the luxury category.

The CZARD official said this evolution is forcing watch brands to think more carefully about what they offer beyond the product itself. “The modern collector is looking for a connection with the watch and the house behind it. Design, provenance, craftsmanship and the experience around ownership can all contribute to that connection,” the official said.

From metros to smaller cities

The luxury market is also becoming geographically broader. Mumbai and Delhi remain major centres for high-end consumption, but brands are increasingly looking towards affluent consumers in Tier II and Tier III cities.

Luxury car makers are expanding its presence in smaller Indian markets after seeing demand from cities such as Kanpur and Patna. The company has also identified younger buyers from business families as an important customer group.

Luxury watches are following a similar trajectory. Industry executives have pointed to increasing demand from smaller cities, while global watch brands have been expanding their retail networks across India's emerging affluent markets.

Luxury as an expression of individuality

Another change is the relationship between luxury and identity. For decades, expensive cars, watches and jewellery were often viewed primarily through the lens of status. Today, affluent consumers are increasingly using luxury purchases to communicate interests, personality and taste.

That helps explain the appeal of limited editions and niche brands. A product that is not widely available can offer something a mass-market luxury item cannot: a sense of individuality. It also creates room for new watch houses.