Mercedes-Benz India reported its highest-ever fiscal year sales of 19,363 units for FY 2025–26, registering a marginal growth compared to 18,928 units recorded in FY 2024–25. The company also posted strong performance in Q1 2026 (January–March), with sales rising 7% year-on-year to 5,131 units from 4,775 units in the corresponding period last year.
Top-End Luxury Segment Drives Growth
The growth was primarily led by Mercedes-Benz India’s top-end luxury segment, which includes models such as the Mercedes-Benz S-Class, Mercedes-Maybach range, Mercedes-Benz EQS SUV and the Mercedes-AMG portfolio. This segment recorded a 16% growth during FY 2025–26 and a 25% increase in Q1 2026.
Top-end luxury vehicles now account for 27% of the company’s total sales in India. The demand for high-performance and ultra-luxury models continues to remain strong, with waiting periods for models such as the Mercedes-AMG G 63 extending up to 12 months.
Core Luxury Segment Maintains Momentum
The core luxury segment — including the Mercedes-Benz C-Class, Mercedes-Benz E-Class Long Wheelbase, Mercedes-Benz GLC and Mercedes-Benz GLE — continued to contribute significantly to overall volumes.
The Long Wheelbase E-Class, supported by the Mercedes-Benz E 450, remains the highest-selling luxury sedan in India, according to the company.
Entry Luxury Segment Sees Decline
The entry luxury segment witnessed an 18% decline during FY26. Mercedes-Benz India attributed the drop to intensifying competition from lower-priced products supported by aggressive market incentives. The company reiterated its focus on maintaining product desirability and premium positioning rather than pursuing price-led volume growth.
Electric Vehicles Gain Traction
Battery electric vehicles accounted for 20% of Mercedes-Benz India’s top-end sales in FY26. High-end electric vehicles priced above ₹1.4 crore recorded 85% year-on-year growth, driven by models such as the Mercedes-Benz EQS SUV, Mercedes-Maybach EQS SUV and the Mercedes-Benz G-Class Electric.
The company also confirmed the launch of the Mercedes-Benz CLA BEV on April 24, 2026, describing it as its first next-generation software-defined electric vehicle for the Indian market.
Two New AMG Performance Models Introduced
Alongside the sales announcement, Mercedes-Benz India introduced two new performance models:
- Mercedes-AMG A45 S Aero Track Edition 4MATIC+
- 2.0-litre turbocharged engine
- 421 hp output
- 0–100 km/h in 3.9 seconds
- Price: ₹87 lakh (ex-showroom)
- Mercedes-AMG GLE 53 Coupé Performance Edition
- 3.0-litre inline-six engine
- 435 hp output
- Price: ₹1.52 crore (ex-showroom)
Retail Expansion Plans
Mercedes-Benz India plans to expand its retail footprint by adding more than 20 luxury outlets in 2026, backed by franchise partner investments exceeding ₹450 crore.
New showrooms are planned in:
- Visakhapatnam
- Varanasi
- Goa
- Pune
Additionally, upgraded facilities were inaugurated in:
- Bengaluru
- Bhopal
- Raipur
Santosh Iyer said the company’s product expansion for 2026 will continue with new AMG launches aimed at performance enthusiasts. He added that strong customer response to models such as the Mercedes-Maybach GLS, Mercedes-Benz V-Class and upcoming CLA BEV reinforces the brand’s growth momentum.
Mercedes-Benz India indicated that additional product launches across segments are planned for the remaining quarters of 2026, as the company continues to strengthen its premium and electric vehicle portfolio.
