Mercedes-Benz India’s diesel share rises to 40% in 2026

Mercedes-Benz India’s diesel share has increased to 40% this year from 38% last year, even as the luxury carmaker’s electric vehicle sales grew 16% in the January-September period.

“In our case, our diesel demand has gone from 38% to 40% this year. So, in fact, my diesel share has gone up this year. I don't see any reduction in diesel,” Santosh Iyer, managing director and CEO, Mercedes-Benz India, said on Monday.

Iyer said the German luxury carmaker has seen no evidence of a structural decline in diesel demand and will continue offering multiple powertrain options as customers decide the pace of electrification.

These comments come at a time when Mercedes-Benz is expanding its electric and plug-in hybrid portfolio in India. The company’s EV sales grew 16% in the first nine months of 2026, while it has also introduced plug-in hybrid versions of models such as the E 53 and S-Class, and has now launched the Mercedes-Maybach S 580e.

Iyer said the company does not see one powertrain replacing another immediately, arguing that each technology addresses different customer requirements.

“Each powertrain has its pros and cons, petrol has its own pros and cons, diesels have their own pros and cons, plug-in hybrids as well as electrics have their own pros and cons,” said Iyer. “We will be agnostic on this topic. Wherever there is customer demand for a certain powertrain, we are not wedded to one, or two, or three. We have the entire portfolio.”

Iyer attributed the continued demand for different powertrains to varying customer requirements. While EVs can address customers looking for zero-emission driving and lower running costs, plug-in hybrids offer an intermediate option for buyers concerned about charging infrastructure and range.

“Plug-in hybrids give the best of both worlds: 100 plus kilometres of pure driving range on electric, and if you or your driver is not able to charge, the combustion engine is there,” he adds.

Iyer welcomed the CAFE 3 regulations, which give manufacturers greater flexibility to determine their powertrain mix to meet fleet efficiency requirements.

“We keep saying that the end goal is electric. But I think there has to be a path,” Iyer said.

“The real sense will only come in when you offer all powertrains and then see how the market is demanding,” he said. “If you withdraw a powertrain, you can be zero also in terms of that specific powertrain.”

To be clear, Mercedes-Benz does not offer a diesel powertrain for the S-Class in India.