Mercedes-Benz India sales fall 3% in CY25 as brand doubles down on value over volume

Mercedes-Benz will launch 12 new products in India in CY26.

• Mercedes-Benz India sales fell 2.85% in 2025, but revenue hit a record high.
• Top-end vehicles and EVs drove growth, with AMG models up 34% y-o-y.
• Mercedes plans 12 new launches and expanded charging network in CY26.

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Mercedes-Benz India reported a 2.85% year-on-year (y-o-y) decline in retail sales in calendar year (CY) 2025, delivering 19,007 units compared with 19,565 units in the previous year, as the luxury carmaker continued to prioritise value over volume and stayed away from price-led growth in the market.

Despite the drop in volumes, the company said CY25 was its best-ever year in terms of revenue, supported by strong demand for high-margin top-end vehicles (TEVs), AMG performance models and electric vehicles (EVs). Mercedes-Benz has consistently maintained that it will not dilute product substance or participate in aggressive discounting to chase volumes.

The decline in overall sales was largely driven by a sharp contraction in the entry luxury portfolio, which fell 20% y-o-y and accounted for 13% of total volumes in CY25. In contrast, the core segment contributed 62% of sales, while top-end vehicles made up 25% of total deliveries during the year.

Sales of top-end vehicles, including the S-Class, Mercedes-Maybach range and AMG models, grew 11% y-o-y, underlining the resilience of demand at the higher end of the luxury market. The AMG portfolio recorded a strong 34% y-o-y growth, driven by models such as the AMG G63, AMG CLE53 and AMG GLC43.

Mercedes-Benz's EV portfolio also continued to expand, registering 12% y-o-y growth in CY2025. Battery electric vehicles (BEVs) accounted for 20% of all top-end Mercedes-Benz cars sold in India during the year.

Notably, 70% of all BEVs sold belonged to the top-end segment, priced between Rs 1.25 crore and Rs 3.10 crore, indicating a clear preference for premium electric offerings such as the EQS SUV, EQS sedan, Mercedes-Maybach EQS SUV and the G580 with EQ Technology.

The long-wheelbase E-Class remained the highest-selling luxury car in the country, while the EQS SUV emerged as Mercedes-Benz's highest-selling luxury electric vehicle.

Commenting on the performance, Mercedes-Benz India MD and CEO Santosh Iyer said, "We have delivered another best-ever year in terms of revenue growth, buoyed by high affinity amongst discerning customers, reflected in the strong growth in the TEV segment as well in top-end BEVs. Our strategy of focussing on 'value over volume' and offering high product substance keeps the customer experience at the core, while ensuring customers continue to enjoy a feature-rich product and retain high residual value for their Mercedes-Benz."

Looking ahead, Mercedes-Benz said 2026 will be an "action-packed year", with plans to launch 12 new products, expand local production, roll out the MB.CHARGE Public charging network, enter new markets and invest in upgrading its retail network.

Rival BMW Group India sold a record 18,001 cars (17,271 units of BMW and 730 units of MINI) in CY25, registering a growth of 14% y-o-y. Audi India retailed merely 4,510 units during the year, posting a decline of 22.45% y-o-y.