NEW DELHI: Demand for luxury cars remained steady in India during the first half (H1) of calendar year 2026, despite geopolitical headwinds and multiple price hikes due to the weakening of the rupee against the Euro. Two leading players - Mercedes-Benz and BMW – reported their best-ever H1 and Q2 sales this year and expect the momentum to continue on the back of new launches, aggressive expansion plan and growing preference for electric vehicles.
BMW Group India on Wednesday reported that it sold 9,075 cars between January and June 2026 (H1), up 17% year-on-year (y-o-y). In the second quarter (Q2) of the calendar year (April – June), the company delivered 4,507 cars with 17% growth y-o-y.
Hardeep Singh Brar, President and CEO, BMW Group India, said that their decisive hold on electric mobility has solidified BMW Group India as the number one choice in the luxury EV segment. “With a phenomenal +78% growth, every fourth car we sell today is an EV. Furthermore, our customer-centric product strategy continues to pay off, driven by a substantial surge in demand for our executive long wheelbase models and dynamic sports activity vehicles,” stated Brar.
The brand had a 69% market share in the luxury EV segment, and its EV penetration to total sales stood at 26% in H1. In H1 2026, BMW launched 11 new products in H1 and plans to launch 14 more by the end of 2026.
Mercedes-Benz on Tuesday also announced best-ever H1 sales with 9,768 units retailed in the January-June 2026 period, up 9% y-o-y. The company also achieved its best-ever Q2 sales performance by retailing 4,637 units between April and June, growing by 10% y-o-y.
Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said that the new V-Class and CLA BEV drove their best-ever H1 and Q2 sales. “The success of the new CLA BEV is an affirmation that Mercedes-Benz customers prefer owning the latest technology, with the car being sold out within a few days of market introduction, customers willing to wait till 5-6 months, to proudly own the car which is truly distinctive and a ‘Class of its Own’,” added Iyer. The CLA BEV propelled Mercedes-Benz’s BEV penetration to 14% in Q2 2026.
Iyer stated that H1 2026 has shown increased preference for Topend Vehicles (priced above Rs 1.4 crore), with the share of TEVs now reaching an all-time high of 28%. Mercedes’ entry luxury segment delivered 29% growth in Q2 2026, driven by the successful market introduction of the all-new CLA BEV.
Mercedes-Benz said that it plans to inaugurate 5 new luxury outlets in key emerging markets, including Varanasi in Q3 2026.
