Mercedes-Benz India has kicked off fiscal Year 2025–26 with its strongest-ever quarterly performance, retailing 4,238 new vehicles during April–June 2025. Marking a 10% year-on-year growth, this record Q1 performance underlines the growing strength of India’s premium auto market and Mercedes-Benz’s ability to capitalise on evolving consumer aspirations despite prevailing macroeconomic pressures.
The uptick in sales has been driven largely by robust demand for the brand’s Top-End Luxury (TEL) and Core model lines. In particular, electric vehicles (BEVs) at the premium end of the portfolio posted remarkable growth, reinforcing the shift towards sustainable mobility among high-net-worth buyers.
Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, reflected on the performance, stating, “We are delighted to begin the fiscal year with our best-ever Q1, achieving 10% growth. This milestone has been driven by consistent demand across our portfolio, particularly in the top-end luxury and BEV segments, where customers are increasingly gravitating towards exclusive, highly personalised vehicles. The exceptional momentum seen in our BEV range—led by the EQS SUV, EQS Maybach, and the G 580 with EQ Technology—signals a clear shift towards luxury electrification.”
Top-End Luxury Shines Bright
A major highlight of the quarter was the 20% surge in Top-End Luxury segment sales, which includes flagships like the Mercedes-Maybach range, S-Class, AMG performance cars, and the electric EQS line-up. Vehicles such as the EQS SUV, G 580 with EQ Technology, and the limited AMG G 63 ‘Collector’s Edition’ have found strong favour with Indian buyers. The newly launched AMG GT 63 PRO has already sold out for the rest of the year, underscoring the growing appetite for exclusive, high-performance vehicles.
This surge reflects a broader trend within India’s luxury car market: a growing inclination towards ultra-premium models that deliver on personalisation, prestige, and performance. According to the company, the rising demand for highly customised vehicles highlights how top-end customers are redefining luxury with hyper-personalisation and lifestyle alignment.
Core Segment Remains Strong Pillar
Mercedes-Benz’s Core portfolio—comprising the C-Class, E-Class LWB sedans, and the GLC and GLE SUVs—remained a steady growth contributor, accounting for 60% of total Q1 sales. The segment posted a healthy 10% growth.
The long wheelbase E-Class retained its crown as India’s best-selling luxury car, now bolstered by the E450 performance variant. Meanwhile, models like the GLC and GLE SUVs, along with the C-Class sedan, continue to attract loyal buyers by balancing performance, comfort, and a strong value proposition.
Entry Luxury Faces Pricing Headwinds
While the Entry Luxury segment remains a key part of Mercedes-Benz India’s strategy, Q1 saw a marginal decline in volumes. This was primarily due to intensified price competition in the entry-level premium space. Nonetheless, Mercedes-Benz maintains that its entry models remain rich in features and offer a value-driven proposition aligned with the brand’s luxury credentials. These products continue to serve as meaningful entry points for aspirational customers moving up the value chain.
Electrification Gains Traction
One of the most significant growth drivers in Q1 FY25–26 was the surge in electric vehicle (EV) sales. Mercedes-Benz’s BEV portfolio grew by a striking 157%, with electric vehicles now comprising 8% of total volumes. The growth was led by top-tier electric models, particularly the EQS Maybach Night Series, the EQS SUV, and the newly introduced G 580 with EQ Technology.
These top-end BEVs are drawing long waitlists, with some models facing waiting periods of up to six months—clear evidence that luxury EVs are no longer niche. The trend is also indicative of growing customer confidence in electric mobility, especially when paired with the luxury, technology, and exclusivity Mercedes-Benz offers.
GLS AMG Line Adds Road Presence
Further enhancing its portfolio, Mercedes-Benz India recently introduced the GLS 4MATIC AMG Line, a dynamic and design-focused variant of its best-selling full-size luxury SUV. Drawing inspiration from the G-Class, the GLS AMG Line features AMG styling cues, bold exterior appointments, and sporty interiors. With over 16,000 GLS units already on Indian roads, the new AMG Line is expected to push the SUV’s appeal even further.
Commenting on the company’s product strategy, Iyer added, “The launch of the new GLS AMG Line further underlines our commitment to enriching the top-end luxury portfolio. With over 16,000 units already on Indian roads, the GLS has firmly established itself as India’s most successful full-size luxury SUV. The new AMG Line iteration elevates this benchmark with its bold styling, athletic road presence, and class-leading comfort—reinforcing our brand’s position as the most desirable in the Indian luxury car market.”
Outlook
Despite currency fluctuations, pricing challenges, and competitive dynamics at the entry level, Mercedes-Benz India’s record Q1 sets a strong tone for the remainder of FY25–26. With sustained demand for high-end luxury vehicles and growing consumer interest in BEVs, the company appears well-positioned to consolidate its leadership in India’s luxury car market.
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