BMW Group India has come closer than ever to displacing long-time luxury car market leader Mercedes-Benz India, narrowing the sales gap to just 693 units in the first half of calendar year 2026 as strong demand for electric vehicles (EVs) helped it post its highest-ever January-June sales since entering the country in 2007.
BMW Group India sold 9,075 vehicles during the six-month period, comprising 8,571 BMW cars and 504 MINI units, compared with Mercedes-Benz India’s 9,768 cars. In the corresponding period last year, the gap between the two rivals stood at 1,239 units, with BMW Group India selling 7,774 vehicles against Mercedes-Benz India’s 9,013.
Buoyed by the momentum, BMW is now setting its sights on the top spot. “We will target the leadership position in the full year of 2026,” Hardeep Singh Brar, president and CEO of BMW Group India, told FE, attributing the company’s performance to the rapid shift towards electric mobility. EVs accounted for 26% of BMW’s total sales in the first half of 2026, up from 21% a year ago, while the share of petrol models declined to 58% from 61% and diesel slipped to 16% from 18%.
EV Volume Surge
The company sold 2,359 EVs during the period, registering 78% year-on-year growth and capturing a 69% share of India’s luxury EV market. Brar said every fourth BMW sold in the country today is an electric vehicle. The entry-level iX1 long-wheelbase, priced at Rs 51.4 lakh (ex-showroom), has emerged as the company’s highest-selling model, contributing nearly a fifth of overall sales. It is followed by the 5 Series, which accounts for around 15-16% of volumes, and the 3 Series at 13-14%.
Mercedes Combats Threat
Mercedes-Benz, meanwhile, is relying on a different strategy to defend its leadership. The German luxury carmaker said demand for top-end vehicles priced above Rs 1.4 crore, including the S-Class, Mercedes-Maybach, EQS SUV and AMG range, grew more than 20% in the first half of the year, taking their contribution to a record 28% of total sales. While BMW’s growth is being driven by relatively accessible electric models, Mercedes’ highest-selling EV remains the premium EQS SUV, while the long-wheelbase E-Class continues to be India’s highest-selling luxury car.
Both companies are preparing for an intense second half. BMW has already launched 11 products this year, including the X3 30d, M440i and MINI Countryman C, and plans to introduce another 14 models before the year-end. Mercedes-Benz, on the other hand, is expanding its retail footprint with more than 20 new luxury outlets across emerging markets such as Varanasi as well as key metros. With less than 700 units separating the two brands midway through the year, the battle for leadership in the luxury car market is set to intensify over the coming months.
