Mercedes-Benz maintains single-digit growth outlook after record H1

Mercedes-Benz India reported its highest-ever first-half sales, retailing 9,768 vehicles between January and June, up 9 per cent from a year ago. The April-June quarter was equally strong, with retail sales rising 10 per cent to a record 4,637 units, driven by the launch of the all-electric CLA, robust demand for its core sedan and SUV portfolio, and sustained momentum in its top-end luxury range.

The company’s biggest growth engine remained its Top-End Luxury (TEV) portfolio, comprising the S-Class, Mercedes-Maybach, Mercedes-AMG, EQS SUV and the new V-Class. Sales in this segment grew more than 20 per cent in the first half, with TEVs accounting for 28 per cent of Mercedes-Benz India’s volumes. AMG sales surged 50 per cent, while waiting periods for select models extend up to a year for the AMG G63.

“We are cautiously optimistic for the second half of 2026. The market is performing well and demand remains strong, with waiting periods continuing across several models, including some diesel variants. However, there are several external factors at play, including the euro-rupee equation, which could necessitate further price increases.

We are therefore maintaining a single-digit growth expectation for the full year,” Santosh Iyer, Managing Director and CEO, Mercedes-Benz India, told Financial Express.

Iyer said Mercedes-Benz is seeing a buying pattern that differs from the broader luxury market. “Across the industry, customers typically enter through lower-priced models before upgrading. For us, many buyers are choosing higher-end products directly.

Our entry models are not price warriors, while our TEV portfolio has become significantly stronger because of our focus on the Indian market, customer engagement and a streamlined retail strategy.”

He added that localisation has further strengthened demand. “The localised GLE 53 AMG has performed well, while sales of the GLS Maybach have almost doubled after localisation. The new V-Class has sold out and we have reopened bookings at the same price for a limited period. We are also accelerating localisation plans for the V-Class.”

The German carmaker’s electric vehicle strategy also gathered pace, with battery electric vehicles accounting for 14 per cent of retail sales in the second quarter. Within the top-end portfolio, one in four vehicles sold during the first half was electric, led by the CLA BEV and EQS SUV.

The entry luxury segment returned to growth, rising 29 per cent in Q2, while the long-wheelbase E-Class retained its position as India’s highest-selling luxury car.

“The CLA has exceeded expectations in India and Europe, where waiting periods are equally high. We need greater allocations for India,” Iyer said, adding that rising fuel prices and a steady stream of new EV launches are accelerating EV adoption. “We are not chasing EV targets but offering customers the freedom to choose their preferred powertrain.

We will expand our EV portfolio further, with the GLC BEV likely to come to India.”  Mercedes-Benz will continue expanding its retail footprint in the second half, opening new luxury outlets, including in Varanasi, to capitalise on sustained demand for premium vehicles.