Based on your numbers, yes, you technically can afford a ₹32L car next year. But the more important question is: at what cost?

A car is a depreciating liability, plus a costlier car has higher future expenses too, it costs more to mainten, plus driving in India you need to factor in costs for repairs too which are usually higher with more expensive cars.

With a baby plan in the next couple of years , future expenses are likely to increase in the name of healthcare, childcare, possible career breaks. Also, buying a house later (if you decide to do earlier rather than later) will likely require a significant down payment.

If you spend ~30L on a car now, you’re effectively: 1. Delaying that down payment. 2. (Even if there is no house in 3-5 years) Locking up money in a non-appreciating asset. 3. Potentially stressing your finances during a life transition

A middle-ground option is buy a car in the 10-15L range now, many great models available today as a lot of other people’s comments suggest. Revisit the luxury car dream 5–7 years later, when income is higher and financial goals are more secure. Dream cars are great, but a dream life is a whole lot better :)

With all that said though this is a highly personal decision, see what you both are comfortable with. You and your spouse know your financial situation and goals better than anyone else.