Mercedes-Benz India Clocks 19,363 Units in FY26, Up 2% YoY; Top-End Vehicles and EVs Drive Growth

Mercedes-Benz India reported its best-ever fiscal sales performance in FY2025-26, retailing 19,363 vehicles, up from 18,928 units in the previous year, as strong demand for top-end luxury vehicles and electric models underpinned growth.

The German luxury carmaker also posted a robust start to calendar year 2026, with Q1 (January-March) retail sales rising 7% year-on-year to 5,131 units, compared to 4,775 units in the same period last year.

The company attributed the growth to sustained demand for both new and existing products, alongside continued investments in network quality and customer experience.

Top-End Luxury, Core Segments Lead Growth

Mercedes-Benz’s top-end luxury segment remained the primary growth driver in FY26 as well as in Q1 2026.

This segment, which includes flagship models such as the S-Class, Mercedes-Maybach range, EQS SUV, and AMG performance cars, recorded a 16% growth in FY26 and a stronger 25% increase in Q1 2026.

Top-end luxury vehicles accounted for 27% of total sales during the fiscal year, reflecting growing demand for high-value products among affluent customers. Waiting periods in this segment range from four months to as long as a year for high-demand models such as the AMG G 63.

The core segment, comprising the C-Class, E-Class LWB sedans, and SUVs such as the GLC and GLE, continued to contribute significantly to overall volumes. The E-Class Long Wheelbase retained its position as the highest-selling luxury car in India, with sustained demand across markets.

In contrast, the entry luxury segment saw an 18% decline in FY26. The company said it continues to prioritise feature-rich, value-driven offerings over price-led volume growth, even as the broader market sees aggressive pricing in the entry segment.

EV Momentum Gathers Pace

Mercedes-Benz’s electric vehicle portfolio continued to gain traction, particularly in the top-end segment.

Battery electric vehicles accounted for 20% of the company’s total top-end luxury sales in FY26. Notably, BEVs priced above ₹1.4 crore recorded an 85% growth during the year, driven by strong demand for models such as the EQS SUV, EQS Maybach SUV, and the Electric G-Class.

New Product Pipeline

Mercedes-Benz has lined up an aggressive product pipeline for 2026, with a focus on both electric and performance vehicles.

The company is set to launch the CLA BEV on April 24, marking the introduction of its next-generation software-defined electric vehicles in India.

It also plans to introduce two new AMG models, including the Mercedes-AMG A45 S Aero Track Edition 4MATIC+, priced at ₹87 lakh, and the Mercedes-AMG GLE 53 Coupe Performance Edition, priced at ₹1.52 crore (ex-showroom).

The company said it has already seen a strong customer response to recent launches such as the GLS Maybach, V-Class, and the upcoming CLA BEV.

“Our product strategy will continue to focus on superior product content and customer aspirations, reinforcing our approach of value-led growth over volume aspirations,” the company said.

Dealer Network Expansion

Under its ‘Go to Customer’ strategy, Mercedes-Benz India has outlined a significant retail network expansion plan for 2026.

The company plans to open more than 20 new luxury outlets across emerging and key markets, including metros such as Bengaluru, Mumbai, and Delhi NCR.

It will also enter new markets such as Visakhapatnam and Varanasi, while strengthening its presence in existing cities, including Pune and Goa, during Q2 2026.

The expansion will be supported by an investment of over ₹450 crore by franchise partners over the next two years. The company will also continue upgrading existing facilities to global luxury standards and explore new retail formats, including AI- and automation-led solutions.