Mercedes-Benz India EV Sales Could Reach 25% in 2027

Mercedes-Benz India Targets Higher EV Penetration

Mercedes-Benz India expects electric vehicles to represent 20-25% of its sales next year if supply availability improves, as demand for its battery electric models continues to exceed the number of vehicles it can currently deliver. The company estimates that EV penetration could have been 7-8% higher this year if sufficient supply had been available. Managing Director and CEO Santosh Iyer said demand is not the main limitation for the business. Instead, supply constraints across several models are preventing the company from converting existing customer interest and confirmed orders into deliveries.

More Than 1,000 CLA BEV Orders Await Delivery

Mercedes-Benz India has received more than 1,000 confirmed orders for the new CLA BEV, with deliveries currently extending to March 2027. Iyer said the order volume demonstrates the strength of customer demand and provides a clear indication of the sales opportunity being constrained by vehicle availability. “If you want to quantify that, we have mentioned close to 1,000 orders for the CLA, and EQS customers are waiting for their cars as we speak,”. He added that the company should be able to deliver these vehicles if sufficient units become available during the current period.

Supply Constraints Are Limiting EV Growth

Iyer said the existing backlog could translate into substantially higher EV penetration for Mercedes-Benz India. Using the company's overall sales volume as a reference, he said the more than 1,000 CLA orders alone represent an opportunity equivalent to roughly 7-8% additional penetration. “That itself, 1,000 cars on a volume of 15,000, if I now look at it from a ratio perspective, is easily 7 to 8% more in terms of penetration that we could have achieved compared to what we could ideally do right now,” he added. The company therefore sees supply improvement as the primary requirement for unlocking additional EV sales.

CLA BEV and EQS SUV Face Different Supply Issues

The supply situation differs across Mercedes-Benz's electric vehicle portfolio. The CLA BEV is experiencing exceptionally strong global demand, which limits the allocation that Mercedes-Benz India can secure for the local market. The company has also faced supply pressure for the locally produced EQS SUV, but for a different reason. Iyer said Mercedes-Benz underestimated the shift in customer demand toward the electric version and is now increasing production to respond to that change. The differing situations highlight how both global demand and local production planning are affecting EV availability in India.

EQS SUV Availability Expected to Improve

Mercedes-Benz expects availability of the EQS SUV to improve significantly around November and December. Iyer also said that most supply-related issues affecting the company's electric vehicle portfolio should be addressed by early next year. The current order backlog indicates that customers remain willing to wait despite the delays. Iyer said some cancellations have occurred, but many buyers are still prepared to wait for as long as six months. This willingness to remain in the order pipeline gives Mercedes-Benz confidence that improved availability can translate into stronger EV deliveries rather than simply reflecting temporary demand.

GLC BEV Expands Mercedes-Benz EV Lineup

The company is also preparing to launch the GLC BEV in India on November 4, adding another battery electric model to its local portfolio. The launch comes as Mercedes-Benz works to resolve existing supply constraints and increase the number of EVs available to customers. The additional model could broaden the company's electric vehicle offering, while improving availability of existing products such as the CLA BEV and EQS SUV remains important to achieving the targeted penetration level. The timing also places greater emphasis on Mercedes-Benz's ability to align product launches, production capacity, and customer demand.

Mercedes-Benz India Records Strong Sales Growth

The push to increase EV volumes comes alongside Mercedes-Benz India's strongest sales performance to date. The company retailed 15,190 vehicles during January-September 2026, up around 8% from 14,132 units during the same period a year earlier. Third-quarter sales reached a record 5,422 vehicles, representing a 6% year-over-year increase and a 17% sequential gain. The broader portfolio also delivered growth during the first nine months, with Top-End Luxury sales rising 13% and the Mercedes-AMG portfolio increasing 18%. These results provide a larger overall sales base against which future EV penetration will be measured.

Entry Luxury Segment Continues to Grow

The Entry Luxury segment, which includes the GLA and CLA BEV, grew 4% during the first nine months of 2026 and represented around 15% of overall sales. The segment's performance adds context to the company's EV growth opportunity because the CLA BEV is already generating demand within a broader part of the portfolio. Mercedes-Benz India's battery electric vehicle portfolio increased 16% year over year during January-September despite the supply limitations. With confirmed orders remaining strong and additional products entering the lineup, improved vehicle availability is expected to be an important factor in determining how quickly EV penetration can increase.

Industry Impact & Outlook

Mercedes-Benz India's experience highlights how supply availability can become a more immediate constraint than customer demand as luxury EV adoption expands. For the Indian premium vehicle market, the ability to secure global allocations and adjust local production will increasingly influence how effectively automakers convert EV interest into registrations and revenue. The expected improvement in EQS SUV availability, resolution of broader supply issues by early next year, and launch of the GLC BEV could give Mercedes-Benz more capacity to capture existing demand. If the order backlog remains strong, higher EV penetration would also strengthen the company's position in India's growing premium electric vehicle segment.

Frequently Asked Questions

What EV sales share does Mercedes-Benz India expect next year?
Mercedes-Benz India expects electric vehicles to account for 20-25% of its sales next year if vehicle supply improves. The company says demand is already strong, with more than 1,000 confirmed orders for the CLA BEV and customers waiting for the locally produced EQS SUV. Supply limitations have prevented the company from fully converting that demand into deliveries. Mercedes-Benz expects most supply-related issues across its electric portfolio to be addressed by early next year, supporting higher EV penetration as availability improves.