Published by Global Banking & Finance Review®
Posted on July 11, 2025
2 min readLast updated: January 22, 2026
Mercedes-Benz India achieved a record 10% sales increase in Q1, driven by strong demand for luxury and electric vehicles, with top-end models seeing significant growth.
(Reuters) -German luxury carmaker Mercedes-Benz said its first-quarter sales in India hit an all-time high, rising 10% to 4,238 units, on strong demand for its high-end models and electric vehicles (EVs).
Demand for luxury models in India, the world's third-largest car market, has steadily risen over the last few years as rapid economic growth brought about a fundamental shift in attitude towards luxury purchases among its younger generation.
Luxury car sales account for a little over 1% of India's 4 million units-a-year market.
"Our sharp focus on bolstering the top-end luxury (segment) has been highly successful in influencing customer preferences," Mercedes-Benz India CEO Santosh Iyer said.
Sales of top-end models, like the S-Class and the Mercedes-Maybach portfolio, rose 20% between April and June, while EV sales jumped than two-fold to form 8% of Mercedes-Benz India's overall sales.
Mercedes' core segment, which includes the C- and E-Class sedans and the GLC and GLE sports utility vehicles, grew 10% in the quarter. These cars account for 60% of the company's total sales in India.
Mercedes leads sales of luxury vehicles in India, followed by BMW and Tata Motors-owned Jaguar Land Rover (JLR). It produces and assembles a handful of models, including some EVs, from its Chakan factory in the western state of Maharashtra.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman)
Mercedes-Benz India's first-quarter sales rose 10% to 4,238 units.
The growth was driven by strong demand for high-end models and electric vehicles.
Sales of top-end models like the S-Class and the Mercedes-Maybach portfolio rose 20%.
Electric vehicle sales jumped more than two-fold, forming 8% of Mercedes-Benz India's overall sales.
Mercedes leads the luxury vehicle sales in India, followed by BMW and Tata Motors-owned Jaguar Land Rover.
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