Mercedes‑Benz India has hit a new milestone, reporting its best-ever first-quarter sales in the fiscal year 2025–26. The luxury automaker sold 4,238 units between April and June, marking a 10% increase year-on-year, driven by strong interest in top-end models and electric vehicles (EVs), reported Rush Lane.
Luxury Models Lead the Charge
Sales of the S-Class, Mercedes-Maybach, AMG, and EQS electric lineup surged by 20% during the quarter. These high-end vehicles are becoming increasingly popular among India’s affluent customers, reflecting a growing appetite for premium mobility choices.
Core Segment Steady and Strong
Mercedes’ core lineup — which includes the C-Class, E-Class, GLC, and GLE — also contributed significantly. This range, traditionally the backbone of its India operations, grew by 10% and now accounts for 60% of the company’s total sales.
EV Sales More Than Double
A standout highlight was the performance of Mercedes’ electric range. EV sales more than doubled, comprising 8% of total Q1 sales. Flagship models like the EQS SUV, EQS Maybach, and G 580 with EQ technology are seeing waitlists of up to six months at the Chakan plant in Maharashtra — a facility responsible for assembling several of these vehicles locally.
Market Position and Outlook
India is now the world’s third-largest automotive market, and Mercedes-Benz continues to lead the luxury segment, outperforming BMW and Jaguar Land Rover. CEO Santosh Iyer credited growth to a focused strategy on premium and luxury offerings, including BEVs, and said, “Our sharp focus on bolstering the top-end luxury segment has been highly successful in influencing customer preferences.”
While Mercedes grew 10% in Q1 FY25–26, overall calendar-year volumes remain modest due to strong prior-year sales. Nevertheless, the upward trend highlights resilience in India’s luxury car market despite broader economic challenges like currency fluctuations and rising costs.
What This Means for the Industry
The robust demand for luxury and electric vehicles signals a shift in Indian consumer preferences. With Mercedes expanding its EV portfolio and ramping up local manufacturing, the stage is set for stiff competition — especially from rivals like BMW and Tata Motors-owned Jaguar Land Rover.
This success story also underscores India’s potential as a key EV hub, backed by increasing infrastructure support and growing consumer confidence in premium electric mobility.
Photo Credit: Rush Lane
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