Quick Takeaways
- Mercedes-Benz tightened its focus on high-margin luxury and EVs even as BMW closed the sales gap in India.
- A 12-model launch blitz in 2026 signals an aggressive push to defend premium leadership.
Mercedes-Benz India Sales 2025 data confirmed that the German luxury carmaker retained its leadership in the Indian premium vehicle market, even as competition from BMW tightened sharply. Along with its performance update, the company also revealed an aggressive 12-vehicle product offensive planned for 2026, led by the locally assembled GLS Maybach and the EQS SUV Celebration Edition.
Mercedes-Benz continued to top the sales charts, but its lead over BMW narrowed to just 1,736 units in 2025 compared to a gap of 3,844 units a year earlier. This shift came as Mercedes sales slipped slightly while BMW India posted its strongest ever annual performance.
Mercedes-Benz India Sales 2025 performance
Despite the volume dip, Mercedes stated that 2025 was its highest-revenue year ever, driven by strong demand for higher-priced models and premium electric vehicles.
Entry-level demand falls as Mercedes focuses on profitability
Of the total 19,007 units sold in 2025, Mercedes’ entry-level range declined by nearly 20 percent, contributing only around 2,470 units, or 13 percent of total sales. According to India Managing Director and CEO Santosh Iyer, the company is deliberately shifting away from price-driven competition in the entry-luxury segment.
Instead, Mercedes is prioritizing its Core and Top-End segments, which deliver stronger margins and more sustainable long-term growth. The E-Class sedan and GLE SUV, which sit in the Core category, continue to be key revenue drivers.
Diesel demand rises after GST price revision
Following the GST-related price revision in September 2024, diesel Mercedes cars gained traction in the market. Their share increased to 43 percent, up from 39 percent earlier, supported by the brand’s wide diesel portfolio across most model lines.
This trend highlights that premium diesel vehicles remain relevant in India, especially for buyers seeking long-distance efficiency combined with luxury and performance.
Top-end vehicles drive Mercedes revenue
Even with slightly lower overall volumes, Mercedes strengthened its position in the high-value segment.
Mercedes-AMG performance models also played a key role, posting a strong 34 percent rise in sales as demand for high-performance luxury cars increased.
Mercedes-Benz India Sales 2025 reflect shift toward premium EVs
The EQS SUV leading top-end EV sales confirms Mercedes’ strategy of positioning electric mobility at the luxury end of the market. Buyers are increasingly choosing premium electric SUVs and sedans that offer both range and advanced technology.
This premium-first EV approach has helped Mercedes defend revenue even as entry-level volumes softened.
Mercedes-Benz India Sales 2025 and the 12-model launch plan for 2026
Building on this premium-focused momentum, Mercedes announced that it will introduce 12 new vehicles in India in 2026. The lineup will include:
Among the upcoming launches, the new Mercedes CLA EV is expected to be the first to arrive, marking a major step in the brand’s next-generation electric portfolio. The G-Class Cabriolet is also likely to debut before the end of the year, expanding Mercedes’ ultra-luxury SUV range.
With its clear emphasis on premium cars, high-margin segments, and electric mobility, Mercedes-Benz is positioning itself to protect leadership even as competition in India’s luxury car market intensifies.
Mercedes-Benz continued to top the sales charts, but its lead over BMW narrowed to just 1,736 units in 2025 compared to a gap of 3,844 units a year earlier. This shift came as Mercedes sales slipped slightly while BMW India posted its strongest ever annual performance.
Mercedes-Benz India Sales 2025 performance
- Mercedes-Benz India sold 19,007 vehicles in 2025, down 2.85 percent from 19,565 units in 2024
- BMW India recorded 17,271 units, up 15.05 percent from 15,012 units in 2024
- The Mercedes EQS SUV emerged as the brand’s highest-selling top-end electric vehicle
- Mercedes-AMG models saw 34 percent growth year on year
Despite the volume dip, Mercedes stated that 2025 was its highest-revenue year ever, driven by strong demand for higher-priced models and premium electric vehicles.
Entry-level demand falls as Mercedes focuses on profitability
Of the total 19,007 units sold in 2025, Mercedes’ entry-level range declined by nearly 20 percent, contributing only around 2,470 units, or 13 percent of total sales. According to India Managing Director and CEO Santosh Iyer, the company is deliberately shifting away from price-driven competition in the entry-luxury segment.
Instead, Mercedes is prioritizing its Core and Top-End segments, which deliver stronger margins and more sustainable long-term growth. The E-Class sedan and GLE SUV, which sit in the Core category, continue to be key revenue drivers.
Diesel demand rises after GST price revision
Following the GST-related price revision in September 2024, diesel Mercedes cars gained traction in the market. Their share increased to 43 percent, up from 39 percent earlier, supported by the brand’s wide diesel portfolio across most model lines.
This trend highlights that premium diesel vehicles remain relevant in India, especially for buyers seeking long-distance efficiency combined with luxury and performance.
Top-end vehicles drive Mercedes revenue
Even with slightly lower overall volumes, Mercedes strengthened its position in the high-value segment.
- The Core segment contributed 62 percent of total sales
- Vehicles priced above Rs 1.25 crore grew by 11 percent
- Top-end models now make up 25 percent of Mercedes-Benz India’s total sales
- 20 percent of all EVs sold were from the top-end range, marking 12 percent growth over last year
Mercedes-AMG performance models also played a key role, posting a strong 34 percent rise in sales as demand for high-performance luxury cars increased.
Mercedes-Benz India Sales 2025 reflect shift toward premium EVs
The EQS SUV leading top-end EV sales confirms Mercedes’ strategy of positioning electric mobility at the luxury end of the market. Buyers are increasingly choosing premium electric SUVs and sedans that offer both range and advanced technology.
This premium-first EV approach has helped Mercedes defend revenue even as entry-level volumes softened.
Mercedes-Benz India Sales 2025 and the 12-model launch plan for 2026
Building on this premium-focused momentum, Mercedes announced that it will introduce 12 new vehicles in India in 2026. The lineup will include:
- Facelifted versions of existing models
- Completely new nameplates
- A strong mix of all-electric and top-end luxury vehicles
Among the upcoming launches, the new Mercedes CLA EV is expected to be the first to arrive, marking a major step in the brand’s next-generation electric portfolio. The G-Class Cabriolet is also likely to debut before the end of the year, expanding Mercedes’ ultra-luxury SUV range.
With its clear emphasis on premium cars, high-margin segments, and electric mobility, Mercedes-Benz is positioning itself to protect leadership even as competition in India’s luxury car market intensifies.
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