Mercedes-Benz India logs record FY26 sales; premium models, EVs power growth

Mercedes-Benz India posted its best-ever annual performance in FY26, retailing 19,363 vehicles, a 2% year-on-year increase, driven by strong demand for top-end luxury models and electric vehicles. The German carmaker also began calendar 2026 on a firm footing, with first-quarter sales rising 7% to 5,131 units.

Top-End Dominance

Growth was led by the top-end luxury segment, comprising flagship models such as the S-Class, Maybach range, EQS SUV and AMG performance cars. The segment grew 16% during FY26 and accelerated to 25% in the January–March quarter, contributing 27% to overall sales. High demand has resulted in waiting periods stretching from four months to nearly a year for certain models. 

The core segment, including the Mercedes-Benz E-Class Long Wheelbase, C-Class and SUVs such as the GLC and GLE, continued to anchor volumes. The E-Class LWB retained its position as India’s best-selling luxury car, underscoring steady demand across markets. In contrast, the entry-level luxury segment declined 18% during the year. The company reiterated its focus on value-led growth, prioritising feature-rich offerings and brand equity over aggressive price-led expansion, even as competition intensifies in the lower end of the luxury market.

Road Ahead for 2026

Electric vehicles remained a key growth lever. Battery electric vehicles accounted for 20% of top-end sales, with models priced above Rs 1.4 crore registering an 85% jump. Demand was led by offerings such as the Mercedes-Benz EQS SUV, EQS Maybach SUV and the Electric G-Class, reflecting growing acceptance of EVs among high-net-worth buyers.

Looking ahead the brand will introduce the CLA electric on April 24. It will also roll out new AMG variants, including the A45 S Aero Track Edition and the GLE 53 Coupe Performance Edition.