For the first time in over a decade, BMW has recorded higher quarterly sales than Mercedes-Benz in the Indian luxury car market, particularly in the Q4 FY2026 period (January 2026-March 2026). For the full FY2026 timeframe, though, Mercedes-Benz held onto its market leader position in the luxury space.
- BMW sold 82 units more than Mercedes-Benz did in the last quarter
- iX1 LWB and 5 Series LWB were key growth drivers for BMW
- Mercedes-Benz outsold BMW by 859 units in FY2026
BMW takes pole position on sales chart in the first three months of 2026
BMW India sold 4,944 units across ICE and EV segments in Q4 FY2026, pulling an 82-unit lead over Mercedes-Benz, which sold 4,862 units during the same time. This impressive performance was a result of strong demand for the iX1 LWB EV and 5 Series LWB luxury sedan, particularly the former.
iX1 LWB turned out a major success for BMW
In fact, the iX1 LWB has been a key volume driver for BMW’s EV sales too, accounting for around 3,200 units out of the 3,537 units the carmaker sold in FY2026 – BMW was the top luxury EV seller of the past fiscal year. Moreover, BMW sold 1,047 EVs in Q4 FY2026 alone, outselling those of Mercedes-Benz (241) by over four times in the same timeframe.
A big reason behind the iX1 LWB’s success is its Rs 51.4 lakh price tag – achieved by way of local assembly – making the electric SUV a compelling option for first-time luxury car buyers. Thanks to the iX1 LWB, X1, and 2 Series serving as BMW’s entry-level models, the German carmaker’s average price point works out to under Rs 70 lakh.
Top-end models are a bigger focus for Mercedes-Benz
Mercedes-Benz, on the other hand, operates at an average price point of around Rs 1 crore and places a special emphasis on top-end models, such as the S-Class, GLS, G-Class, and Maybach, EQS, and AMG line-ups. Top-end models account for 25 percent of Mercedes-Benz India’s total sales. Even in the EV space, Mercedes-Benz’s model mix skews towards higher prices, with about 20 percent of EV sales coming from the EQS SUV, which starts at Rs 1.34 crore.
On the entry-level side, Mercedes-Benz India had the A-Class Limousine, EQA, and EQB on sale, but these have now been discontinued ahead of the CLA Electric’s launch in late April; the CLA Electric will serve as Mercedes-Benz’s new entry-level model for India, with pricing estimated in the Rs 55 lakh-60 lakh region.
Mercedes-Benz remained India's luxury market leader in FY2026
Quarterly performance aside, Mercedes-Benz retained its years-long top spot on the luxury car sales rankings when taking the full FY2026 period into account. It sold 18,160 units, outperforming BMW’s FY2026 sales numbers by 859 units.
YoY growth in sales was significantly higher for BMW
However, BMW recorded a much higher YoY increase in sales, and even grew its market share slightly. Mercedes-Benz's market share, meanwhile, dropped from 0.43 percent in FY2025 to 0.39 percent in FY2026.
All prices are ex-showroom, India.
Suraj Viswanathan
Hormazd Sorabjee
Ketan Thakkar
