BMW Overtakes Mercedes-Benz in Q1 2026 India Luxury Car Sales, But Mercedes Leads Annually

BMW Group India surpassed Mercedes-Benz in luxury car sales during the first quarter of calendar year 2026, according to VAHAN registration data. BMW recorded 4,944 units sold from January to March 2026, while Mercedes-Benz India and Mercedes-Benz AG together registered 4,862 units. This gave BMW a narrow lead of 82 units for the quarter. However, Mercedes-Benz remains the top luxury carmaker in India for the full financial year 2026, maintaining a lead of 859 units over BMW.

Key Highlights

• BMW sold 4,944 units in Q1 2026, surpassing Mercedes-Benz by 82 units
• Mercedes-Benz remains India's top luxury carmaker for FY2026 with an 859 unit lead
• BMW's iX1 accounted for about 3,200 of its 3,500 EVs sold in FY2026
• Mercedes-Benz's average selling price nears ₹1 crore, focusing on top-end vehicles
• BMW sold 1,047 EVs in Q1 2026, compared to 241 by Mercedes-Benz

Quarterly Sales Shift

This is the first time in over a decade that BMW has overtaken Mercedes-Benz in any quarter in India. The shift reflects changing dynamics in the luxury car market, which has long been dominated by Mercedes-Benz. The gap between the two German brands has narrowed in recent years, with BMW’s recent performance marking a significant milestone.

BMW’s growth in Q1 2026 was driven by strong sales of the iX1 and 5 Series models. The iX1, in particular, played a key role, accounting for about 3,200 of BMW’s 3,500 electric vehicles sold in FY2026. Priced at around ₹49 lakh, the iX1 and its internal combustion engine alternative have helped BMW maintain an average price point below ₹70 lakh. This has expanded BMW’s reach among first-time luxury car buyers.

Contrasting Strategies

Mercedes-Benz India has focused on higher-value vehicles, with an average selling price close to ₹1 crore. Over 25% of its sales come from top-end vehicles priced above ₹1 crore. Its electric vehicle portfolio is also skewed towards premium models, with about 20% of EV sales from the EQS SUV, which costs approximately ₹1.4 crore.

The two brands’ strategies are reflected in their electric vehicle sales for Q1 2026. BMW sold 1,047 EVs in the quarter, while Mercedes-Benz India sold 241 units. BMW’s broader portfolio, covering entry-level luxury, executive sedans, and EVs, has helped it build higher volumes. Mercedes-Benz, meanwhile, continues to prioritize profitability and top-end luxury, helping it retain its annual leadership.

Market Outlook

Month-wise data shows a tight contest. BMW led in January and March 2026, while Mercedes-Benz outperformed in February. This indicates increasing competition and fluidity in market leadership. Despite BMW’s Q1 lead, Mercedes-Benz’s annual dominance remains clear for FY2026.

BMW aims to use its wide portfolio to attract a broader customer base, especially at the entry level. Mercedes-Benz continues to focus on value over volume. The contest between the two brands is expected to intensify, making 2026 a closely watched year in India’s luxury car market.