Mercedes-Benz Beats Rivals To Take Top Spot In Luxury Car Sales In Q1 2026

Mercedes-Benz has secured the leading position in India's luxury car retail sales for the first quarter of 2026, outperforming key rivals based on recent VAHAN registration data. The company reported retail sales of 5,131 units in January-March 2026, marking a 7 percent increase from 4,775 units in the same period last year.

Mercedes-Benz's strong Q1 results were driven by robust demand across its core and top-end segments. The top-end luxury lineup, including models like the S-Class, Mercedes-Maybach, EQS SUV, and AMG range, grew by 25 per cent in Q1, contributing significantly to overall volumes. The long-wheelbase E-Class continued as the best-selling luxury sedan, while battery electric vehicles (BEVs) accounted for 20 per cent of top-end sales in FY 2025-26, with the EQS SUV leading as the highest-selling luxury BEV.

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BMW Group India recorded 4,567 car deliveries in Q1 2026, up 17 per cent year-on-year, but trailed Mercedes-Benz in retail figures per VAHAN data. BMW's growth was fueled by electric vehicles (1,185 units, 83 per cent rise) and sports activity vehicles (2,966 units, 38 per cent growth), with long-wheelbase models making up over 50 per cent of sales. Audi sales data for the period was not detailed in available reports, though Mercedes maintained its edge in the premium segment.

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The company achieved its best-ever fiscal year in 2025-26 with 19,363 units, supported by a 16 per cent top-end growth. Entry-level luxury saw an 18 per cent dip amid market incentives, but Mercedes prioritized a value-led strategy over volumes.

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Mercedes-Benz plans over 20 new luxury outlets in 2026, with Rs 450 crore investments, targeting markets like Visakhapatnam and Varanasi. New launches, including the CLA BEV on April 24, will bolster its electric portfolio. This positions the brand for continued leadership amid moderating luxury demand influenced by global factors.