When 51-year-old Gurugram-based multinational executive Rajan Wadhera began shopping for a new luxury car this year, he believed he had found the perfect workaround for India’s rising premium car prices. Living at DLF Camellias and commuting barely 10-12 kilometres daily to DLF Cyber City, he fit neatly into the profile luxury carmakers prize most—affluent, urban and predictable in usage. BMW’s 360° programme allowed him to reduce the monthly cost of owning a ₹50 lakh-₹70 lakh BMW X1 or electric iX1 from nearly ₹1.5 lakh under a conventional loan to about ₹70,000-₹85,000 by financing only the vehicle’s expected depreciation over three years instead of its full purchase price.Instead of financing the entire cost of the vehicle, Wadhera financed only its expected depreciation, with BMW guaranteeing a pre-agreed residual value after 36 months. At the end of the tenure, he could pay the balloon amount and retain the vehicle, refinance the balance or simply return it under the programme.Structured ownership products combine Guaranteed Future Value (GFV), balloon financing and pre-agreed buyback or return options, allowing customers to finance only a vehicle’s expected depreciation rather than its full purchase price. Luxury brands including BMW, Mercedes-Benz, Audi and Lexus follow this model through programmes like BMW 360°, Star Agility+, Audi Assured Buyback and Lexus Smart Ownership, while some manufacturers are extending the concept through leasing-led ownership models.Access over AssetWadhera is not an exception. BMW Group India estimates the country’s structured ownership ecosystem to be around ₹4,500-5,000 crore, while Mercedes-Benz Financial Services alone has built an assets-under-management (AUM) book of around ₹1,500 crore.Industry executives estimate penetration of these products has nearly doubled over the past three years—from around 18-20 per cent of luxury vehicle sales in FY24 to about 35-40 per cent today. In luxury EVs, adoption is even higher, with nearly two out of every three vehicles sold under some form of structured ownership programme.The model, however, comes with a caveat. Most programmes assume annual driving of just around 15,000 kilometres - customers exceeding those limits face deductions in the guaranteed buyback value . BMW said customers generally choose plans that match their driving patterns, cases of significant mileage breaches are few, and where charges apply they are disclosed upfront and broadly remain in line with industry practice.“We are seeing a clear shift in customer behaviour, especially in the premium and emerging EV segments, where buyers increasingly want flexibility, lower monthly ownership costs and confidence around future value,” said Hardeep Singh Brar, President and Chief Executive Officer, BMW Group India. “Assured buyback structures are helping customers upgrade more frequently while giving them predictability in an environment where technology cycles, regulations and vehicle prices are evolving rapidly,” he says.Rethinking the RideIndia’s luxury passenger vehicle market has expanded from an estimated 42,700 units in FY24 to about 47,000 units in FY25 and is expected to approach 52,000 units in FY26. But structured ownership products have grown much faster. Industry estimates suggest vehicles sold under GFV, assured buyback and similar programmes have risen from roughly 7,700-8,500 units in FY24 to about 13,200 units in FY25, reaching 18,200-20,800 units in FY26 and lifting penetration from 18-20 per cent of the luxury market to 35-40 per cent over the same period.Analysts expect the momentum to continue, projecting that nearly one in every two luxury cars sold in FY27—or 26,000-28,000 vehicles out of an estimated 55,000-unit market—will be sold under some form of structured ownership programme.In luxury EVs, penetration is expected to rise further to 75-80 per cent as buyers seek protection against battery depreciation and rapid technology change.The playbook is now moving beyond luxury brands into the ₹15 lakh-₹35 lakh premium passenger vehicle segment. Volkswagen and Škoda have introduced assured buyback programmes on models such as the Taigun, Maruti Suzuki is pairing the upcoming e Vitara with Guaranteed Future Value plans, while Tata Motors, JSW MG Motor and Mahindra are expanding similar ownership structures across their premium EV portfolios.Analysts say the model is becoming a structural retail strategy, allowing automakers to lower monthly ownership costs, accelerate replacement cycles and expand the addressable market for higher-priced vehicles.FROM NICHE TO MAINSTREAMThe momentum is already visible in the numbers. Around 22-25 per cent of BMW Group India’s retail sales are now linked to GFV-backed products, while BMW 360° accounts for more than 70 per cent of that portfolio, up from around 65 per cent over the past 12-18 months. Mercedes-Benz Financial Services finances around 40 per cent of the brand’s retail sales in India, with one in every two financed vehicles opting for the Star Agility+ programme, Managing Director and CEO Santosh Iyer told businessline.“Customers today are increasingly evaluating luxury vehicles on the overall ownership proposition rather than just the purchase price. Products such as Star Agility+ provide greater certainty around future value while lowering the monthly cost of ownership, making them an important enabler of luxury car ownership,” Iyer said.For automakers, the attraction extends well beyond lower monthly repayments. Every vehicle sold under a structured ownership product effectively becomes future inventory for the certified pre-owned business, allowing manufacturers to monetise the same asset twice—first as a new vehicle and later through their approved used-car network—while maintaining tighter control over residual values, replacement cycles and customer retention.The model nevertheless contains an inherent contradiction. Electric vehicles become more economical the more they are driven because fuel savings increase with every kilometre. Structured ownership products reward the opposite behaviour.The higher the annual mileage, the greater the likelihood of eroding the guaranteed future value through excess-kilometre deductions and lower residual values—a reminder that the same structure lowering the cost of entry also works best when customers stay within the usage assumptions on which it is built.Published on July 6, 2026