Mercedes-Benz India delivered 4,775 new cars in first quarter of 2025, recording a 12% decline compared with 5,412 units sold in the same period last year.

This was mainly due to a decline in sales of entry-level luxury cars as the German carmaker stayed away from intense price competition. “The decline of 28% in entry-luxury can be attributed to our non-participation in intense price competition and only catering to discerning luxury customers, who value high product substance and appreciate the core brand values of a Mercedes-Benz,” said Santosh Iyer, managing director and CEO, Mercedes-Benz India.

However, for the fiscal year 2024-25, Mercedes-Benz India witnessed its best-ever retail sales of 18,928 units, up 4% compared to FY24, aided by a 34% rise in demand for its top-end luxury cars, each priced above ₹1.5 crore. Sales of top-end care were driven by the likes of S-Class, Mercedes-Maybach range and the EQS SUV.

“There is a growing trend of customers moving upward to the top-end luxury segment, as the demand for desirable cars continues to captivate them,” said Iyer.

Battery electric vehicles (BEVs) accounted for 7% of the luxury automaker’s total sales in FY25, clocking a growth of 51% compared to the previous fiscal. The was mainly led by the top-end ‘Made in India’ EQS SUV.

“It is also very satisfying to see more women buyers opting for luxury cars. Close to 15% of our sales are now contributed by women customers, who love to drive, choose their own cars which are essential part of their lifestyle,” said Iyer.

“Another interesting trend is the emergence of salaried employees buying a luxury car. These are senior corporate executives and professionals who are rewarding themselves for their professional achievements with a car which they have always aspired to own,” he said.

Rival BMW Group India clocked the highest-ever car deliveries of 3,914 units (BMW and MINI) in the first quarter of calendar year 2025, recording a 7% growth compared to the same period last year. BMW sold 3,764 units and MINI 150 units. The luxury carmaker delivered 646 BMW and MINI EVs in the first three months of 2025.

“The growth of 206% year-on-year in electric sales, reflects the high level of sustainability, performance and innovation that progressive Indians associate with the BMW Group brands,” the automaker said. The first-ever BMW iX1 Long Wheelbase, launched at Auto Expo 2025, disrupted the market and garnered over 1,500 bookings, becoming the largest selling BMW EV in Q1.

BMW Group India currently offers six electric cars and two electric scooters - BMW i7, BMW iX, BMW i5, BMW i4, BMW iX1 Long Wheelbase, MINI Countryman E, BMW CE 04 and BMW CE 02.