India's luxury car market remained resilient in the first half of 2026, with Mercedes-Benz and BMW Group India reporting the highest-ever January-June sales, according to a report by Business-Today. The growth was driven by strong demand for electric vehicles (EVs), premium SUVs, and top-end luxury models.
Record H1 Sales in India
Market leader Mercedes-Benz India retailed 9,768 cars in the first six months of the year, up 9% from 9,013 units a year ago. BMW Group India, which includes the BMW and MINI brands, grew at a faster pace, with sales rising 17% to 9,075 units.
| Manufacturer | H1 2026 Sales | H1 2025 Sales | Change |
|---|---|---|---|
| Mercedes-Benz India | 9,768 | 9,013 | +9% |
| BMW Group India | 9,075 | 7,757 | +17% |
Electric Vehicles as Growth Driver
Electric vehicles outperformed across both portfolios. BMW sold 2,359 EVs during the period, up 78% year-on-year, with battery-powered models now accounting for 26% of its total sales. Hardeep Singh Brar, President and CEO of BMW Group India, told Business-Today: "We are already seeing order book cross 30% EVs. Supply constraints over the last few months prevented us from achieving that mix, but if supplies remain stable, crossing 30% is not far away."
Mercedes-Benz India also reported growing traction for EVs. Santosh Iyer, MD and CEO of Mercedes-Benz India, said that EVs contributed 14% of its overall sales in the April-June quarter, led by the newly launched CLA BEV and the EQS SUV. BEVs now account for a quarter of sales in the company's top-end luxury portfolio.
Premium Segment and Supply Dynamics
The premium end of the market continued to outperform. Mercedes said sales of its top-end luxury range — including Maybach, AMG, S-Class, and V-Class models — grew more than 20% and contributed 28% of overall volumes, while AMG performance cars registered 50% growth.
Brar attributed the strong demand to BMW's strategy of offering performance-oriented electric cars, coupled with improving charging infrastructure and rising customer confidence. He noted that range anxiety was no longer a major concern for most buyers as public charging networks expanded and newer EVs delivered sufficient real-world driving range.
Outlook for Luxury Car Manufacturing
For manufacturing executives, the record H1 numbers signal robust demand in India's luxury automotive sector, particularly for EVs. The supply constraints highlighted by BMW suggest that OEMs may need to secure more stable component flows — especially battery packs and electronics — to meet the growing EV order book. With BMW's order book crossing 30% EVs and Mercedes seeing a 14% BEV mix in Q2, the shift toward electrification is accelerating. The strong performance of top-end models also indicates healthy margins for manufacturers, which could support further investment in local assembly or capacity expansion.
Sources:
