In the competition between the country’s leading luxury car makers, BMW Group India has overtaken Mercedes-Benz India India in the first quarter of 2026. However, the overall luxury car market has remained flat, with total registrations reaching 13,336 units from January to March 2026, compared to 13,322 units during the same period a year earlier.
Mercedes-Benz India has been the dominant brand for several years, but BMW has now climbed to the top spot for the January to March 2026 period. According to VAHAN data, 4,944 BMW cars were registered in Q1 of 2026, marking an 11% year-on-year growth. In contrast, Mercedes-Benz reported 4,863 registrations.
While Mercedes-Benz has led the luxury car market in India for many years, the gap between the two companies is narrowing. In Q1 of 2023, the difference was significant, with Mercedes selling 1,734 more cars than BMW. By Q1 2025, the gap had narrowed to just 39 cars. In the first quarter of 2026, BMW surpassed Mercedes, registering 81 more units.
EV segment
In the electric vehicle segment, BMW led with 1,047 registrations, achieving a 47% growth. In comparison, Mercedes-Benz registered approximately 241 electric vehicles during the same quarter. Overall, the luxury electric vehicle segment totalled 1,484 units in Q1, a 21% year-on-year increase.
In March 2026, the Federation of Automobile Dealers Associations (FADA) data showed that BMW sold 1,580 cars, while Mercedes sold 1,448 cars. In January 2026, BMW sold 1,962 units compared to Mercedes’ 1,806 units. However, in February, Mercedes outperformed BMW, selling 1,371 units while BMW sold only 1,216 cars.
Top-selling luxury car brand
Despite this recent competition, Mercedes continued to be the top-selling luxury car brand for the entire financial year. Mercedes concluded FY26 with sales of 18,160 units, holding a 0.39% share of the passenger car market, while BMW’s share was slightly lower at 0.38%.
BMW attributes its success to not only new launches and a diverse product portfolio across various price points but also to expanding its market reach. The company is targeting emerging cities where a new segment of customers is entering the luxury car market.