Luxury car maker Mercedes-Benz India announced its best-ever fiscal 2026 sales with 19,363 units, up from 18,928 units in FY25. The company retailed 5,131 new Mercedes-Benz vehicles in the January–March 2026 period, growing by 7% (Q1 2025: 4,775 units).
Mercedes-Benz India’s sales were strongly driven by new and existing products, qualitative network upgradation, and a differentiated customer experience. Continued robust performance of the core and top-end luxury segments was a key highlight of Mercedes-Benz’s sales performance during FY26 as well as Q1 2026.
Product strategy to continue in 2026
Mercedes-Benz India Managing Director & CEO, Santosh Iyer, said, “Our product fireworks for 2026 will continue as we introduce two new AMGs for performance enthusiasts. We are enthused by the overwhelming response to new products like the GLS Maybach, the V-Class, and the CLA BEV, and customers can expect more desirable products planned across segments for the remaining quarters. Mercedes-Benz will maintain a sharp focus on superior product content and customer aspirations, reinforcing our strategy of value-led growth over volume aspirations.”
Robust Demand for top-end luxury segment
Mercedes-Benz’s top-end luxury segment, which comprises highly desirable and industry benchmark models like the S-Class, Mercedes-Maybach, EQS SUV, and the AMG range, continued its growth trajectory, successfully retaining the trust and loyalty of highly discerning customers.
Top-end luxury segment sales grew by a strong 25% in Q1 2026 and by 16% in FY26, underpinned by consistent demand for the S-Class, Mercedes-Maybach range, EQS SUV, and iconic products like the AMG G63.
Notably, in FY26, 27% of all luxury cars sold by Mercedes-Benz in India were top-end luxury vehicles. The waiting period for the top-end luxury segment currently ranges from four months and extends up to a year for iconic products like the AMG G63.
Consistent demand drives core segment
Mercedes-Benz’s core segment significantly contributed to the sales performance in FY26 and Q1 2026. The core segment, comprising the C-Class, E-Class LWB sedans, and the GLC and GLE SUVs, continued to retain customer preference, contributing a significant share to overall sales volumes.
In FY26 and Q1 2026, the success of the E-Class LWB (also available with a dynamic E 450 variant) remained unabated, with very high customer traction across all markets. The Long Wheelbase E-Class remains the highest-selling luxury car in India.
Entry luxury segment performance
Mercedes-Benz’s entry luxury models are defined by strong product content and a superior value proposition. In FY26, the segment saw an 18% decline within a market increasingly dominated by lower-priced products supported by market-led incentives.
Mercedes-Benz, however, continues to focus on comprehensively equipped, feature-rich vehicles, underscoring a value-oriented sales approach that aligns with long-term brand desirability and prioritises ‘customer aspiration’ over ‘price-led volume aspirations’.
BEV momentum gains strength
Battery electric vehicles (BEVs) now account for 20% of Mercedes-Benz’s total top-end retail volumes in FY26. Notably, top-end luxury BEVs (priced above ₹1.4 crore) recorded an 85% growth in FY26, driven by strong demand for the EQS SUV, EQS Maybach SUV, and the Electric G-Class SUV.
Mercedes-Benz is set to launch the highly anticipated CLA BEV on April 24, 2026, reaffirming its long-term BEV roadmap for the Indian market. The CLA BEV will be the first of Mercedes-Benz’s next-generation software-defined electric vehicles, marking the beginning of the brand’s global electric product rollout in India.
Retail network expansion in focus
Under its ‘Go to Customer’ strategy, Mercedes-Benz India has outlined an ambitious retail network expansion plan for 2026. The company plans to establish more than 20 world-class luxury outlets across high-potential emerging markets, alongside reinforcing its presence in key metropolitan regions such as Bengaluru, Mumbai, and Delhi-NCR.
As part of this expansion, Mercedes-Benz India will debut in new markets like Visakhapatnam and Varanasi, while further strengthening its footprint with new luxury outlets in established markets such as Pune and Goa during Q2 2026.
Customer experience and investment commitment
Customer experience remains central to Mercedes-Benz’s network strategy. The company will continue to upgrade existing facilities across markets to global luxury standards, while also exploring new retail formats and advanced technologies, including AI- and automation-led solutions.
This expansion will be supported by an investment of over ₹450 crore by Mercedes-Benz franchise partners over the next two years.