BMW Group India has overtaken Mercedes-Benz in quarterly luxury car sales for the first time in more than a decade, according to VAHAN registration data, even as Mercedes-Benz remains the No.1 luxury carmaker in India for the full financial year FY2026.
BMW India recorded 4,944 units in the January–March period of CY2026, compared with a combined 4,862 units for Mercedes-Benz India and Mercedes-Benz AG, giving BMW a narrow lead of about 82 units in the quarter.
The development marks a significant milestone in a market long dominated by Mercedes-Benz, and follows a sharply narrowing gap between the two German rivals in recent years.
The divergence also highlights a widening split in strategy, with BMW’s growth being led by higher volumes at the lower end of the luxury spectrum, driven by models such as the iX1, while Mercedes-Benz India continues to focus on value, with a significant share of its sales coming from top-end vehicles priced upwards of ₹1 crore.
According to FADA data for FY2026:
• Mercedes-Benz Group: 18,160 units
• BMW India: 17,301 units
This places Mercedes-Benz firmly at No.1 for FY2026, with a lead of 859 units, underscoring that BMW’s outperformance, for now, reflects a quarterly shift rather than a structural change over a full cycle.
iX1-led Volumes Drive BMW’s Breakthrough
BMW’s Q1 outperformance has been driven by strong traction for its iX1 and 5 Series, with the iX1 emerging as a key volume pillar.
Of BMW’s roughly 3,500 EVs sold in FY2026, about 3,200 units came from the iX1, highlighting its outsized role. Priced at around ₹49 lakh, the iX1, along with its ICE alternative, has enabled BMW to operate at an average price point below ₹70 lakh, expanding its reach among first-time luxury buyers.
In contrast, Mercedes-Benz India has moved up the value chain, with its average selling price nearing ₹1 crore. Top-end vehicles account for over 25% of total sales, and its EV mix is skewed towards higher-priced models, with around 20% of EV volumes coming from the EQS SUV, priced at roughly ₹1.4 crore.
The contrasting strategies are now clearly visible in the numbers. BMW’s wider portfolio across entry luxury, executive sedans and EVs has helped it build volumes, including 1,047 EVs in Q1, compared with 241 units for Mercedes-Benz India. Mercedes-Benz, meanwhile, continues to prioritise top-end luxury and profitability, a strategy that has helped it retain No.1 position in FY2026, even as BMW gains ground in shorter time frames.
Month-wise data shows a closely contested battle, with BMW leading in January and March, while Mercedes-Benz outperformed in February, indicating a market where leadership is becoming increasingly fluid.
While BMW’s Q1 lead marks a breakthrough moment, the FY2026 data suggests that Mercedes-Benz continues to dominate on an annual basis, setting up what could be the most closely fought year yet in India’s luxury car market.
BMW Group intends to capitalize on the broad portfolio to address wider customer base including at the entry, whereas for Mercedes Benz, it is a case of value over volume.