Mercedes-Benz India achieves record FY26 with 16% growth surge

Mercedes-Benz India achieved its highest-ever fiscal year sales in FY 2025-26, delivering 19,363 units. This marks a slight increase from 18,928 units sold in FY 2024-25. The company also reported Q1 2026 sales of 5,131 units, a 7% rise from 4,775 units in the same period last year.

Sales Summary

Key Highlights

• Mercedes-Benz India reports record sales of 19,363 units in FY 2025-26
• The top-end luxury segment grows 16 percent and now makes up 27 percent of total sales
• Entry luxury segment declines 18 percent due to increased competition and incentives
• Battery electric vehicles account for 20 percent of top-end sales in FY26
• Over 20 new luxury retail outlets planned for 2026 with investments above ₹450 crore

Top-End Segment Drives Growth

The top-end luxury segment, which includes the S-Class, Mercedes-Maybach range, EQS SUV, and AMG models, led the company's growth. This segment grew 16% over the fiscal year and 25% in Q1 2026. Vehicles in this category now represent 27% of total Mercedes-Benz India sales. Some models, such as the AMG G 63, have waiting periods of up to 12 months.

The core segment, featuring the C-Class, long-wheelbase E-Class, GLC, and GLE, continues to contribute significantly to overall volumes. The long-wheelbase E-Class, especially the E 450 variant, remains the highest-selling luxury sedan in India, according to the company.

Entry Luxury and Electric Vehicle Performance

The entry luxury segment experienced an 18% decline in FY26. Mercedes-Benz India attributes this drop to increased competition from lower-priced products and market-led incentives. The company reaffirmed its focus on product quality and brand desirability rather than pursuing volume through lower prices.

Battery electric vehicles (BEVs) accounted for 20% of top-end sales in FY26. Top-end BEVs, priced above Rs 1.4 crore, saw 85% year-on-year growth. This growth was driven by models like the EQS SUV, EQS Maybach SUV, and the Electric G-Class. Mercedes-Benz India will launch the CLA EV on 24 April 2026, marking its first next-generation software-defined electric vehicle for the Indian market.

New Model Launches and Retail Expansion

Mercedes-Benz India introduced two new performance variants. The AMG A45 S Aero Track Edition 4MATIC+ features a 421 HP, 2.0-liter turbocharged engine and accelerates from 0 to 100 kmph in 3.9 seconds. It is priced at Rs 87 lakh (ex-showroom). The AMG GLE 53 Coupé Performance Edition, with a 435 HP, 3.0-liter inline-six engine, is priced at Rs 1.52 crore (ex-showroom).

The company plans to add over 20 luxury retail outlets in 2026, supported by franchise investments exceeding Rs 450 crore. New showrooms will open in Visakhapatnam, Varanasi, Goa, and Pune in Q2 2026. Upgraded facilities in Bengaluru, Bhopal, and Raipur were inaugurated in Q1 2026.

Managing Director and CEO Santosh Iyer stated that Mercedes-Benz India will continue to introduce new models across segments in 2026, responding to strong customer demand for recent launches such as the GLS Maybach, V-Class, and CLA EV.

CarBike 360 Says

Mercedes-Benz India’s record FY26 performance underscores the brand’s stronghold in the luxury segment and rising customer preference for high-end experiences. With sustained momentum, an expanding product portfolio, and a focus on electrification, the company appears poised to set new benchmarks in FY27, further cementing its position as the leading luxury automaker in India.