On the back of strong demand for top-end luxury vehicles (starting ex-showroom price of Rs 1.4 crore), Mercedes-Benz reported its best-ever fiscal sales, with 19,363 units retailed in the April 2025-Mar 2026 period (up from 18,928 units in FY 24-25). Going forward, the German marquee brand expects to clock single-digit growth despite geopolitical and macroeconomic headwinds.
The company also claimed of mainting leadership in the luxury car market during the January-March quarter by retailing 5,131 units, up 7% (Q1 2025: 4775 units). On Wednesday, BMW had posted 17% year-on-year (YoY) sales growth to 4,567 units in Q1 of calendar year 2026.
Mercedes-Benz’s Top-End Luxury segment that comprises models like the S-Class, Mercedes-Maybach, EQS SUV and the AMG range continued its high growth trajectory. Top-End Luxury segment sales grew by a strong 25% in Q1 2026 and by 16% in FY 25-26. Notably, in FY 2025-26, 27% of all luxury cars sold by Mercedes-Benz in India were ‘Top-End Luxury’ vehicles.
Mercedes-Benz’s ‘Core’ segment also contributed to the sales performance in FY 25-26 and in Q1 2026. The Core segment includes models such as C-Class, E-Class LWB sedans, the GLC and GLE SUVs. The Long Wheelbase E-Class remains the highest-selling luxury car in India.
Mercedes-Benz’s entry luxury models are defined by strong product content and a superior value proposition. In FY 2025–26, the segment saw an 18% decline within a market increasingly dominated by lower-price products supported by deep discounting, said the automaker. Mercedes said that it will continue to focus on feature-rich vehicles, underscoring a value-oriented sales approach.
“Our product fireworks for 2026 will continue as we introduce two new AMGs for performance enthusiasts. We are enthused by the overwhelming response to new products like GLS Maybach, the V-Class and the CLA BEV, and customers can expect more desirable products planned across segments for the remaining quarters,” said Santosh Iyer, Managing Director & CEO, Mercedes-Benz India.
Battery Electric Vehicles (BEVs) now account for 20% of Mercedes-Benz’s total Top-End retail volumes in FY 2025–26. Notably, TopEnd Luxury BEVs recorded an 85% growth in FY 2025–26, driven by demand for the EQS SUV, EQS Maybach SUV, and the Electric G-Class SUV.
Mercedes is set to launch the highly anticipated CLA BEV on 24 April 2026. This will be the first of Mercedes’ next-generation software-defined electric vehicles, marking the beginning of the brand’s global electric product fireworks in India.
The company plans to establish more than 20 world-class luxury outlets across high-potential emerging markets, alongside reinforcing the brand’s presence in key metropolitan regions such as Bengaluru, Mumbai, and Delhi NCR. As part of this expansion plan, Mercedes India will debut in new markets like Visakhapatnam and Varanasi, while further strengthening its footprint with new luxury outlets in established markets of Pune and Goa, during Q2 2026.