Mercedes-Benz India sees 3% drop in sales as entry-luxury portfolio shrinks
Mercedes-Benz India continues to lag its German rival BMW in battery electric vehicle (BEV) sales owing to its focus on top-end cars.
- Jan 15, 2026,
- Updated Jan 15, 2026 5:49 PM IST
Mercedes-Benz India reported a 3% year-on-year drop in volumes at 19,007 units in calendar year 2025 as the German carmaker’s entry luxury portfolio witnessed a decline of 20%.
While the share of entry luxury cars in Mercedes’ India portfolio went down to 13%, top-end vehicles, comprising the S-Class, Mercedes-Maybach and AMG, showed robust performance with 11% growth and 25% sales penetration.
“This is in line with the brand’s strategy of not compromising product substance or participating in price competition in the market,” the German luxury carmaker said in a press statement.
Mercedes-Benz continues to lag its German rival BMW in battery electric vehicle (BEV) sales owing to its focus on top-end cars. The automaker sold 1,168 electric cars in 2025, up 22% compared with 954 EVs sold in 2024, according to VAHAN. In comparison, BMW sold 3,195 EVs in 2025, clocking a growth of 160% year over year.
As per VAHAN data, 19% of all new cars sold by BMW in India were electric whereas 6% of all new vehicles sold by Mercedes-Benz were BEVs.
“70% of all Mercedes-Benz BEVs sold in 2025 belong to the top-end segment, priced between Rs 1.25 crore to Rs 3.1 crore,” the luxury carmaker said. Top-end BEVs comprise the EQS SUV, EQS Sedan, Mercedes-Maybach EQS SUV and the Mercedes-Benz G580. The EQS SUV remains Mercedes-Benz’s highest selling luxury BEV in India
In 2026, Mercedes-Benz plans 12 new cars for India, including new models and some with no predecessor, in addition to launching facelifts. Many of these products will comprise top end vehicles and new battery electric vehicles (BEVs).
Mercedes-Benz also announced the start of local production of the Mercedes-Maybach GLS at its manufacturing facility in Pune. This marks a significant milestone in the brand's manufacturing capabilities in India, making India the first market outside the US to locally produce the ultra-luxury Mercedes-Maybach GLS. The ultra-luxurious vehicle is currently retailed in India as a CBU (Completely Built Unit) import.
“The decision reinforces India's strategic importance as being among the Top 5 global markets for Mercedes-Maybach, witnessing increasing demand for top-end ultra-luxury vehicles. The local manufacturing initiative will enable faster delivery timelines and enhanced customer access to this pinnacle of craftsmanship on wheels,” the company said.
Mercedes-Benz India said it plans to grow its presence with 15 new luxury touchpoints in 2026 in 3 new markets.
Mercedes-Benz India reported a 3% year-on-year drop in volumes at 19,007 units in calendar year 2025 as the German carmaker’s entry luxury portfolio witnessed a decline of 20%.
While the share of entry luxury cars in Mercedes’ India portfolio went down to 13%, top-end vehicles, comprising the S-Class, Mercedes-Maybach and AMG, showed robust performance with 11% growth and 25% sales penetration.
“This is in line with the brand’s strategy of not compromising product substance or participating in price competition in the market,” the German luxury carmaker said in a press statement.
Mercedes-Benz continues to lag its German rival BMW in battery electric vehicle (BEV) sales owing to its focus on top-end cars. The automaker sold 1,168 electric cars in 2025, up 22% compared with 954 EVs sold in 2024, according to VAHAN. In comparison, BMW sold 3,195 EVs in 2025, clocking a growth of 160% year over year.
As per VAHAN data, 19% of all new cars sold by BMW in India were electric whereas 6% of all new vehicles sold by Mercedes-Benz were BEVs.
“70% of all Mercedes-Benz BEVs sold in 2025 belong to the top-end segment, priced between Rs 1.25 crore to Rs 3.1 crore,” the luxury carmaker said. Top-end BEVs comprise the EQS SUV, EQS Sedan, Mercedes-Maybach EQS SUV and the Mercedes-Benz G580. The EQS SUV remains Mercedes-Benz’s highest selling luxury BEV in India
In 2026, Mercedes-Benz plans 12 new cars for India, including new models and some with no predecessor, in addition to launching facelifts. Many of these products will comprise top end vehicles and new battery electric vehicles (BEVs).
Mercedes-Benz also announced the start of local production of the Mercedes-Maybach GLS at its manufacturing facility in Pune. This marks a significant milestone in the brand's manufacturing capabilities in India, making India the first market outside the US to locally produce the ultra-luxury Mercedes-Maybach GLS. The ultra-luxurious vehicle is currently retailed in India as a CBU (Completely Built Unit) import.
“The decision reinforces India's strategic importance as being among the Top 5 global markets for Mercedes-Maybach, witnessing increasing demand for top-end ultra-luxury vehicles. The local manufacturing initiative will enable faster delivery timelines and enhanced customer access to this pinnacle of craftsmanship on wheels,” the company said.
Mercedes-Benz India said it plans to grow its presence with 15 new luxury touchpoints in 2026 in 3 new markets.