Mercedes' India quarterly sales fall even as BMW, Audi grow

Mercedes Benz's India car sales in the January-March period fell 12% on-year as demand for its entry-level luxury cars priced below ₹60 lakh declined.

From April 2024 to March 2025, it sold about 18,928 cars, a growth of 4% over a year earlier. This was led by an over one-third jump in the sales of top-end luxury cars during the year, according to its statement. Its EV sales grew more than 50% during the year.

The sales of entry-level luxury cars, which constitute about a tenth of the German brand’s overall sales in the country, fell 28% in the first three months of 2025. 

However, the sales of top-end luxury cars, priced above ₹1.5 crore each, rose 6% on-year in the same period, accelerating the premiumization of its portfolio.

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About a fourth of its sales in the country come from the top-end luxury car segment, with the management expecting this share to rise in the near future.

The decline in quarterly sales comes even as rivals BMW and Audi registered growth in January-March. BMW’s sales rose 7% on-year to about 3,914 cars, while Audi sold 1,223 units, a 17% growth during the period.

“We don’t participate in the intense price competition that is usually seen in the entry-level car segment. We cater to only those customers who value our high-quality products,” Santosh Iyer, managing director and chief executive officer at Mercedes Benz India, said in an interview.

In the coming year, the company is focusing on expanding its electric vehicle sales in the top-end luxury segment. Of its total sales in the first three months, EV sales constituted about a tenth of its total portfolio at 382 units.

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The company is now strengthening its presence in top metros as well as doubling down on emerging urban centres.

“Going forward, we will have a nearly equal emphasis on the network expansion in both the top metros as well as the emerging hubs,” Iyer said. “But our core strength will be in the top-end luxury car segment. We have more than 1,500 customers waiting for their cars in the segment."

Mercedes is planning to add about 21 new outlets in 2025, in addition to its over 100 touchpoints in the country.

“Nearly 80% of our sales come from the top metros while the balance is coming from the rest. As we expect both markets to grow, we don’t expect much change in the share in the near future,” Iyer said.

Mercedes India entered the country in 1994 through a joint venture with Telco, then Tata Motors. After the partnership ended in the early 2000s, the company started a production facility in Chakan, Pune with an investment of over ₹3000 crore so far.

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