- BMW Group India leads India's luxury market in H1 2026.
- Luxury vehicle demand increasingly favors electric and premium models.
BMW Group India became the country's largest luxury car manufacturer during the first half of 2026 based on Vahan registration data, surpassing Mercedes-Benz India. The company registered 10,043 vehicles, including MINI, compared with Mercedes-Benz India's 9,472 registrations. This performance represented a 15% year-on-year increase for BMW, significantly exceeding the overall luxury vehicle market growth of 4%. As a result, the company expanded its market share to 38%, while Mercedes-Benz India's share declined to 35%.
Supply Constraints Influenced Market Rankings
Although Vahan registration data placed BMW ahead, retail sales figures continued to favor Mercedes-Benz India. Retail deliveries, which represent vehicles handed over to customers through dealerships, stood at 9,768 units for Mercedes-Benz India. BMW recorded retail sales of 8,571 units, while MINI contributed an additional 504 units. Mercedes-Benz indicated that supply-side limitations affected availability, particularly for its diesel portfolio and the recently introduced CLA, preventing the company from fully meeting customer demand despite healthy order levels.
BMW Credits Growth to EV Expansion and Customer Strategy
Speaking about the company's performance, Hardeep Singh Brar, President and CEO of BMW Group India, highlighted several factors supporting the strong first-half results. “Looking back at H1, there are four things which really worked for us: electric strategy that we embarked on a few years back, we have expanded into 40 cities and we're looking at 10 more markets, the long wheelbase strategy and our belief in brand and customer experience,” he said. The company believes these strategic initiatives strengthened customer engagement and contributed significantly to its market leadership.
Major Product Offensive Planned for Second Half
After recording 17% growth and becoming the fastest-growing luxury vehicle manufacturer during the first half of 2026, BMW expects stronger momentum in the remaining months of the year. The automaker introduced 11 new models during the first half and plans to launch 14 additional models in the second half. Unlike the earlier launches, the upcoming portfolio will include multiple electric vehicles alongside new sedans and SUVs. Brar said, “We have launched 11 models in the first half of the year. The second half of the year is even more intensive. We are launching 14 more models. In the first half, they were predominantly ICE. In the second half, it's going to be electric as well, a couple of electric models, then a very good mix of sedans and SUVs. I think the second half is going to be even more rocking.”
Luxury Vehicle Registration Performance During H1 2026
| Brand | Registrations | Year-on-Year Change | Market Share |
|---|---|---|---|
| BMW Group India (Including MINI) | 10,043 | 15% | 38% |
| Mercedes-Benz India | 9,472 | -3% | 35% |
| Land Rover | 3,039 | -5% | 11% |
| Audi | 2,182 | 3% | 8% |
Electric Vehicles and Network Expansion Supported Growth
BMW stated that its electric vehicle strategy continued to deliver positive results throughout the first half of the year. EV penetration increased from 21% during the previous year to 26%, meaning one out of every four BMW vehicles sold in India was electric. The company currently operates 100 customer touchpoints across 40 cities and plans to establish 19 additional outlets covering 18 more cities during the year. MINI also delivered notable growth, with sales increasing by 70% to reach 504 units during H1 2026.
Long-Wheelbase Models and SAVs Remained Key Contributors
Long-wheelbase vehicles continued to play a major role in BMW's sales mix. The company sold 4,428 long-wheelbase vehicles during the first half of 2026, representing 24% year-on-year growth and accounting for 52% of overall sales. Sports Activity Vehicles also remained the largest contributor to total volumes, increasing 35% to 5,926 units and representing 65% of the company's deliveries. Brar said, “I think people love to be chauffeured during the weekdays and they want to drive themselves and BMW gives them the best of both worlds.”
5 Series Long Wheelbase Continued Strong Performance
BMW also highlighted the growing popularity of its locally assembled 5 Series Long Wheelbase. The model became the company's third-highest-selling vehicle during the first six months of 2026, with sales exceeding 1,200 units. Commenting on the achievement, Brar said, “5 series is the third largest selling model for us. So I think if I tell in terms of number, I think we sold more than 1,200 in the first half, which is, I would say, doing very well.” The continued demand reflects increasing customer preference for premium long-wheelbase luxury sedans.
Frequently Asked Questions
Why did BMW Group India become India's largest luxury carmaker during H1 2026?
BMW Group India secured the top position based on Vahan registration data after registering 10,043 vehicles, including MINI, during the first half of 2026. The company achieved 15% year-on-year growth, significantly outperforming the overall luxury market. Strong electric vehicle adoption, increasing demand for long-wheelbase models, wider dealership expansion, and a broad product portfolio collectively supported its market-leading performance while Mercedes-Benz India faced supply-related constraints.
Did Mercedes-Benz India lose leadership in customer deliveries?
No. Although BMW led Vahan registrations, Mercedes-Benz India remained the leader in retail sales, which measure actual customer deliveries through dealerships. Mercedes-Benz delivered 9,768 vehicles during H1 2026 compared with BMW's 8,571 units and MINI's 504 units. The company stated that limited availability of diesel models and the newly launched CLA affected registrations despite maintaining healthy customer demand and retail performance.
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