07 April,2026 09:34 AM IST | Mumbai | mid-day online correspondent
Pic/Pixabay
BMW Group India has overtaken Mercedes-Benz India in the first quarter of 2026, marking a significant shift in India's luxury car market. The early months of 2026 highlight an intense battle for leadership, with steady global growth and a clear transition toward electric vehicles (EVs). BMW emerged as the Q1 leader with strong momentum, supported by new product launches and a broadened portfolio, while Mercedes-Benz retained its dominance over the full FY26, maintaining a lead of 859 units overall.
Mercedes-Benz has traditionally dominated the Indian luxury segment, but BMW has steadily closed the gap in recent years. According to VAHAN data, BMW registered 4,944 cars in Q1 2026, reflecting an 11 percent year-on-year increase, while Mercedes-Benz reported 4,863 registrations. The narrowing gap is evident when compared to previous years, where Mercedes led by 1,734 units in Q1 2023 and just 39 units in Q1 2025, before BMW moved ahead by 81 units in Q1 2026.
In EV segments, BMW led with 1,047 registrations, achieving 47 pc growth. Mercedes-Benz sold about 241 electric vehicles in the same quarter. The total luxury EV market reached 1,484 units in Q1, marking a 21 pc year-on-year growth.
In early 2026, sales between BMW and Mercedes-Benz were closely matched:
January: BMW sold 1,962 cars; Mercedes sold 1,806
February: Mercedes led with 1,371 cars; BMW sold 1,216
March: BMW again led with 1,580 cars; Mercedes sold 1,448
Overall, both brands alternated in leading month-to-month.
Despite BMW's quarterly lead, Mercedes-Benz remained the top-selling luxury car brand for the full financial year, selling 18,160 units and holding a 0.39% share of the passenger vehicle market, slightly ahead of BMW's 0.38percent. Mercedes' sustained leadership can be attributed to its strong brand equity, established dealer network, and consistent demand across its sedan and SUV lineup.
BMW, on the other hand, credits its recent success to aggressive product strategies, including frequent model updates, competitive pricing across segments, and a focused push into Tier-II and Tier-III cities. These emerging markets are witnessing a rise in first-time luxury car buyers, driven by increasing disposable incomes and aspirational consumption. Additionally, both automakers are investing heavily in digital retail experiences, customer engagement initiatives, and after-sales services to strengthen brand loyalty.
Looking ahead, the competition between BMW and Mercedes-Benz is expected to intensify further, especially with upcoming EV launches, expansion of charging ecosystems, and evolving consumer expectations. The Indian luxury car market, though still a small fraction of the overall automobile sector, is poised for steady growth, with electrification and geographic expansion likely to shape the next phase of competition.
