Mercedes-Benz India has announced its record quarterly sales, with demand for its cars hitting a fever pitch in the third quarter.
The luxury automaker sold 5,422 cars between July and September, a 6% increase year-over-year and the highest number since records began. Strong sales of Core Luxury, Top-End Luxury, and electric vehicles drove growth, but the star attraction was the new CLA BEV (battery electric vehicle) that has orders for over 1,000 units.
Record-Breaking Quarterly Sales
Mercedes-Benz India sold 5,422 cars between July-September, driven by strong demand for luxury sedans and SUVs. The number represents a 6% increase from 5,119 units sold during the same period in the previous year and a 17% increase from the 4,617 units sold in Q2 2026. The automaker sold 15,190 units between January-September, up 8% from 14,132 units sold in the same period last year.
As a result, Mercedes-Benz has retained its position as the largest luxury car vendor in India, with a market share of 35%. Sales growth was broad-based, driven by demand for all segments. The Top-End Luxury segment, which sells cars like Maybach and GLS, grew strongly, reflecting the resilient ultra-high-net-worth Indian population. The AMG performance sub-brand also recorded a stellar 18% sales growth in the first nine months of the year. The AMG G 63, which costs over ₹4 crore, continues to sell out its monthly allocation.
The CLA BEV Demand Outnumbering Supply
The strongest demand, however, was for the CLA BEV – Mercedes’s most affordable luxury electric vehicle. More than 1,000 customers have ordered the car, which has created supply chain bottlenecks. New customers may have to wait until March 2027 for the car to arrive.
Mercedes’s CLA BEV is a game-changer in the ₹55-60 lakh (ex-showroom) segment as it undercuts the competition in terms of price and covers a claimed distance of 750 km (WLTP) on an 85 kWh battery. The car also features MB.OS operating system with an AI assistant, augmented reality navigation, and an optional 56-inch hyperscreen dashboard. Its blend of the prestigious Mercedes-Benz badge and cutting-edge technology has proved to be a hit with Indian customers.
The strong demand for the CLA BEV has created supply chain pain for Mercedes. Customers who had ordered the car in June will receive their vehicles in March 2027, according to Mercedes-Benz India CEO Santosh Iyer. In a market where waiting for a luxury car is anathema, Mercedes-Benz may lose customers to the competition if the supply chain cannot meet the demand.
EV Sales Surge by 16% Despite Inventory Constraints
Mercedes’s EV sales grew by 16% in the January-September period, with the company registering strong demand. The automaker, however, acknowledged limited vehicle availability, which suggests that EV sales could have been higher if inventory was available. The EQS SUV continues to sell out its monthly allocation, with customers having to wait for 3-4 months. The EQE Sedan has proved to be a favorite with the corporate buyer looking to buy a tax-saving executive vehicle.
The upcoming GLC BEV, which is expected to launch before the end of the year, has also attracted strong pre-booking demand. Mercedes has targeted a 20-25% EV sales share by the end of the year and has an opportunity to achieve the target.
Core Luxury, AMG Segment Fuel Growth
While Mercedes’s EV sales and ultra-luxury Maybach segment make headlines, the real growth engines for the automaker continue to be its Core Luxury segment and AMG performance cars. Sales of the C-Class and E-Class sedans and GLC and GLA SUVs accounted for the majority of Mercedes’s 5,422 units sold in Q3. The SUV craze in India continues to benefit Mercedes as its GLC and GLE SUVs outsold sedans in a ratio of 2:1. The AMG division is also witnessing a sales surge, with AMG 43 and 53 variants of the C-Class, E-Class and GLC recording double-digit sales growth.
Indians continue to show a preference for performance cars, with buyers of AMG 63 variants looking to buy the fastest and most expensive cars in the Mercedes-Benz stable. However, the more affordable AMG 43 and 53 variants are witnessing rising demand as aspirational buyers look to upgrade from AMG 35 variants.
Competitive Environment
Industry estimates suggest that BMW India sold around 4,500 cars in Q3 of 2026 while Audi’s sales touched 3,200 units. Mercedes-owned luxury sub-brand Maybach has not sold a single car this year, with its GLS and S-Class selling out their allocations. But the automaker’s ability to offer a wide range of products from core luxury to ultra-luxury has helped it capture the market at all levels.
Mercedes-Benz India is in a far better position than its competitors to benefit from the rising affluence in India and has seen its sales growth outpace that of the competition. The automaker is well-positioned to benefit from the festive season and product launches in the coming months, but the 1,000+ orders for its CLA BEV and the long waiting list may see some customers switch to the BMW i5 or the upcoming Audi A6 e-tron.
