Mercedes-Benz India off to a good start in FY26, sells 4,238 units in Q1

Mercedes-Benz India reports 10% increase in sales, driven by luxury models and battery electric vehicles.
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Mercedes-Benz India started off FY26 on an optimistic note, selling 4,238 units in the first quarter, a rise of 10 per cent but said it expects single-digit growth for the full year.

Sales during the quarter was driven by strong demand from high end models such as the S-Class, Maybach and AMGs, the top end vehicles growing by 20 per cent.

The luxury car maker said that while the overall market remained flat with only a growth of up to 2 per cent, Mercedes-Benz saw an above industry growth, especially at its top end and a 157 per cent growth in its Battery Electric Vehicle (BEV) sales.

The penetration of electric vehicle stood at 8 per cent of overall sales.

According to industry estimates in H1 22,900 luxury vehicles were sold in the country, of which 9013 were from Mercedes-Benz India.

“The factors driving our growth include the Top-End Vehicle segment and BEV vehicles that have enabled the 10 per cent growth. We do not have vehicles in the entry-luxury segment at sub ₹50 lakh price point, our entry-level portfolio starts at ₹65 lakhs with the EQA. Our focus is more on top-end and core-luxury segments,” Santosh Iyer, Managing Director & Chief Executive Officer told businessline.

The company, however, said the luxury car segment is not expected to see an uptick in sales during the festive season this year.
“Last year we had a very high second half; therefore, this year to grow on that high base will be challenging. There are a lot of geopolitical sentiments. Sentiments are driven by geopolitical issues sometimes, and more so, the price increases that have happened in the segment. We had a price increase in January, followed by another one in July, and now the next one may come in September,” he said.

On Tesla opening its first showroom in India, the company stated that it welcomes competition and it would expand the overall electric vehicle adoption in the country.

“We welcome any new brand in the market as it offers novelty of choice to the customer, expanding the market and further strengthening the BEV ecosystem in the country,” he said

Price Hike

While the company, which is set to increase its prices in September, has stated that the Euro continues to be at an all-time high.

“We have also seen a reduction in interest rate, and 80 per cent of our cars are bought in finance through our own NBFC, Mercedes-Benz Financial Services, which funds 50 per cent of the vehicles. We have been able to pass on the interest rate benefit to customers. The vehicle prices have gone up, but the EMIs have remained the same. The customer affordability has not changed. If you look at the Euro to the Rupee, it is ₹100, which has not improved. We expect that it will come back to ₹95, but if it continues, then we will have to look at options,” added Santosh Iyer.

Published on July 11, 2025