Mercedes-Benz India retained its position as India’s largest luxury car maker in the January–March quarter based on company-reported retail sales, even as vehicle registration data showed a shift in luxury car market leadership to rival BMW India for the first time.

BMW Group on Wednesday said it recorded its highest-ever January-March sales, delivering 4,567 cars and posting 17% year-on-year growth. A day later, Mercedes-Benz reported sales of 5,131 cars, up 7%, allowing it to maintain the top spot in the country’s luxury vehicle market based on retail numbers announced by the companies.

The vehicle registration data from VAHAN reflected a different outcome. BMW India recorded registrations of 4,944 units in the January-March quarter, compared with a combined 4,862 units for Mercedes-Benz India and Mercedes-Benz AG, giving BMW a narrow lead.

VAHAN is the government-run vehicle registration database and is widely used as a proxy for retail demand, as it records vehicles registered at RTOs. In comparison, company retail data reflects vehicles reported as sold by automakers through their dealer networks. 

The gap between the two numbers usually comes from timing differences. Vehicles may be delivered at the end of a month but registered later, and there can also be delays at select RTOs or in completing registration after delivery.

Mercedes-Benz said demand remained strong for its top-end luxury portfolio, with one out of every 55 vehicles sold in India in this segment being a battery electric vehicle. Waiting periods for select models such as the AMG G63 and Mercedes-Maybach S-Class have stretched to as much as 12 months, reflecting sustained demand.

“Mercedes-Benz remains the most desirable luxury brand in India buoyed by strong customer loyalty for both our new and existing products. We are thrilled with the strong demand for our top-end luxury portfolio that set new benchmarks in the luxury segment with exclusivity and personalization,” Managing Director & CEO Santosh Iyer said.

“Similarly, a sustained demand for the ‘core’ segment underlines unwavering customer trust for winning products like the C-Class, LWB E-Class sedans and GLC and GLE SUVs.”

BMW, meanwhile, highlighted the growing role of electric vehicles in its portfolio, noting that one in four cars sold by the company in India is now electric.

“Because of this oil crisis and a lot of negativity around oil… a lot of customers have started feeling that EV is the right way to move forward,” President and CEO Hardeep Singh Brar said.

More than a month into the West Asia conflict, BMW said geopolitical uncertainty has started to weigh on demand in the luxury segment, even as the broader mass-market segment remains relatively unaffected.

Going forward, Mercedes-Benz said it will introduce two new AMG models in 2026 and expand its retail footprint, with plans to open luxury outlets in emerging markets such as Goa, Varanasi and Visakhapatnam. The company expects franchise partners to invest more than Rs 450 crore to set up 20 new luxury outlets during the year.

BMW also plans an aggressive product push, with the company preparing to launch 15 BMW brand cars and 10 Mini models in 2026, as it targets sustained double-digit growth in the Indian market.