BMW Moves Within Striking Distance of Mercedes-Benz

The race for the top position in India’s luxury car market is tightening, with BMW Group India closing in rapidly on long-time leader Mercedes-Benz India, even as it insists it will not chase volumes at the cost of brand or profitability. “Who minds getting number one, but we want it to be an organic growth to number one and not inorganic,” said Hardeep Singh Brar, President and CEO, BMW Group India. 

BMW narrowed the sales gap to about 1,000 vehicles in calendar year 2025 from nearly 2,500 units a year earlier, riding strong momentum in the second half of the year and a surge in electric vehicle demand. “So now the gap is about 1,000 units,” Brar said. “Last year, I think it was close to 2,500.”

The company ended 2025 with sales of around 18,000 units and posted its best-ever quarterly performance in the October–December period, selling more than 6,000 vehicles as growth accelerated to about 17% in the quarter. “In December we were ahead,” Brar said, pointing to a period where BMW briefly overtook its rival on monthly volumes. He estimated BMW’s luxury market share at about 35%.

Total size of India’s luxury car market is 52,000 units, of which market leader Mercedes Benz India holds 37%. The tightening contest comes despite a relatively subdued luxury car market, which grew by less than 10% in 2025 to about 52,000 units. BMW outpaced the market, aided largely by a steady stream of new launches rather than a broad-based expansion in demand.

Electric vehicles were a key differentiator. They accounted for about 21% of BMW India’s sales in 2025, more than double the luxury segment average of 9–10%. The electric iX1 alone contributed around 3,000 units during the year, said Brar.

BMW Group India plans to launch 10 new models in 2026, including three electric vehicles, and enter 10 additional cities as it looks to sustain double-digit growth and keep pressure on the segment leader.