India luxury car sales rise in double digits; Mercedes-Benz sales grow 8% to record 15,190 units

Sales of luxury vehicles in the local market rose in double digits year-on-year in the first nine months of the ongoing calendar year, supported by replacement demand despite price hikes and geopolitical uncertainties.

Santosh Iyer, managing director at market leader Mercedes-Benz India, said the company reported its best-ever quarterly sales at 5,422 units in the three months to Sep 30, 2026. Iyer told ET, “Despite the volatility we have been seeing in capital markets, demand remains strong. All other parameters be it GST collections, the manufacturing activity index have been showing healthy growth, which indicates that macro-economic fundamentals in the country are healthy. We are seeing good demand heading into the festive season.”

Mercedes-Benz recorded its highest-ever January-September sales in India, with 15,190 cars retailed in the first nine months of 2026, up 8% from the same period last year. “As in the mass market, we are at present constrained by supplies as we have limited stocks,” Iyer said.


The company said the CLA Electric, for one, has received more than 1,000 confirmed orders, with deliveries extending into April 2027 due to limited supply.

Growth this year has largely been driven by new launches and demand for long-wheelbase models like the E-Class, GLE, GLS and V-Class. The company said repeat purchases from existing Mercedes-Benz customers as part of the replacement cycle contributed to demand. Iyer explained, “All those customers who purchased a luxury vehicle post-Covid are now upgrading their vehicles. And the new launches are adding to the excitement in the segment.”

Meanwhile, the CLA Electric, launched in April this year, has helped drive up the company’s electric vehicle sales, which grew 16% in the nine months till September 2026. Mercedes-Benz expects EVs to account for 20-25% of its sales next year if supply improves. Iyer informed that the company could have achieved 7-8 percentage points higher EV penetration this year if not for supply-side issues.

Overall, the core luxury segment accounted for around 60% of Mercedes-Benz India’s sales in January-September, with the C-Class, GLC, GLE and long-wheelbase E-Class making up the bulk of this segment. The entry-luxury segment, comprising the GLA and CLA Electric, accounted for around 15% of sales and grew 4% during the period. The company’s top-end portfolio grew 13% and accounted for more than 25% of sales. Mercedes-AMG sales rose 18% during the period.

Last quarter, the company’s sales were also 17% higher than in the previous quarter.