Mercedes-Benz India Posts Best-Ever Fiscal Sales, Bets Big on Luxury Over Volume

Mercedes-Benz India has closed FY 2025-26 with its strongest sales performance on record, 19,363 units retailed between April 2025 and March 2026, and 18,928 units sold the year before. The numbers tell a story about where India’s luxury car market is heading, and Mercedes is clearly reading the room.

The momentum carried into the new fiscal year too. In Q1 2026 (January to March), the company retailed 5,131 units, a 7% jump over the 4,775 units sold in the same quarter last year. For a brand that has long positioned itself at the premium end of the market, the growth feels deliberate rather than accidental.

Top-End Pulls the Weight

The headline figure masks an important shift happening beneath the surface. Mercedes-Benz’s growth isn’t being driven by volume-focused entry-level cars, it’s coming from the top.

The Top-End Luxury segment, which includes the S-Class, Mercedes-Maybach, EQS SUV and the AMG range, grew 16% in FY 2025-26 and a sharper 25% in Q1 2026 alone. That segment now accounts for 27% of all Mercedes-Benz cars sold in India, more than one in four cars. Waiting periods for the most sought-after models say it all:

– AMG G 63: Up to 12 months

– Mercedes-Maybach S-Class: Up to 12 months

– Other Top-End models: 4 months and above

Strong demand for the AMG and Maybach portfolios has been a consistent theme, underlining that India’s wealthiest buyers aren’t just aspirational, they’re actively purchasing.

The Core Holds Steady

While the top end grabs headlines, the bread-and-butter ‘Core’ segment, C-Class, LWB E-Class, GLC, and GLE, continued to anchor overall sales. Among these, the Long Wheelbase E-Class stood out, retaining its position as the highest-selling luxury car in India. The recently introduced E 450 variant gave the model fresh momentum, drawing buyers who want executive refinement with a performance edge.

The GLC and GLE SUVs also maintained consistent customer pull, reflecting India’s broader preference for SUV body styles even at the luxury end of the market.

Entry Luxury: A Conscious Step Back

Not every part of the portfolio is growing. The Entry Luxury segment declined 18% in FY 2025-26, and Mercedes-Benz is making no apologies for it. Managing Director and CEO Santosh Iyer has been clear about the company’s direction, value over volume. Rather than chasing market share with incentive-driven sales, the brand is focusing on fully loaded, feature-rich vehicles that protect long-term brand equity.

It’s a gamble that appears to be paying off. The overall sales record was set even with the entry segment pulling in the wrong direction, which suggests the top-heavy strategy is more than holding its own.

Electric Vehicles Find Their Footing

Battery Electric Vehicles are becoming a real part of the Mercedes story in India, at least at the upper end. Key numbers from FY 2025-26:

– BEVs now represent 20% of all Top-End Mercedes-Benz sold

– Top-End BEVs (priced above ₹1.4 crore) grew 85% year-on-year

– The EQS SUV emerged as Mercedes-Benz’s highest-selling luxury BEV in India

The brand is set to add to this momentum with the CLA BEV, scheduled for launch on 24 April 2026. The CLA will be the first of Mercedes-Benz’s next-generation software-defined electric vehicles to arrive in India, a significant marker for the brand’s long-term EV roadmap in the country.

Expanding Into New Markets

Mercedes-Benz is also thinking beyond its traditional strongholds. Under its ‘Go to Customer’ strategy, the company has outlined plans for over 20 new world-class outlets across India in 2026, backed by an investment of over ₹450 crores from franchise partners.

New facilities opened in Q1 2026 include outlets in Bengaluru, Bhopal, and Raipur. Upcoming openings planned for Q2 2026 span:

– Visakhapatnam — a first for the brand in the city

– Varanasi — another new market entry

– Goa, Pune, and Mumbai — further strengthening existing presence

The expansion signals a clear ambition: bring Mercedes-Benz closer to buyers in Tier 2 cities where luxury aspirations are growing faster than the retail infrastructure to support them.

What the Numbers Actually Mean

A record fiscal year built on premium demand, disciplined pricing, and growing EV traction is a different kind of success story from what most volume-chasing automakers celebrate. Mercedes-Benz India isn’t selling to everyone, it’s selling more to those who were already coming to it.

Whether that approach sustains itself through FY 2026-27 will depend on how the new product pipeline performs. With the CLA BEV, fresh AMG launches, and continued Maybach momentum, the brand appears confident it has enough in the tank to keep the numbers going.