Mercedes-Benz India wrapped up 2025 with 19,007 units sold, a marginal 3% dip from 19,565 units in 2024. Yet, this performance propelled India into the brand’s global top 5 markets for the first time, underscoring the luxury carmaker’s rising dominance in Asia’s fastest-growing auto economy.
In a year marked by economic headwinds, festive surges, and EV ambitions, Mercedes outpaced giants like South Korea and Italy. This milestone reflects India’s maturing luxury segment, where affluent buyers favor premium SUVs and electrified models. Let’s break down the numbers, drivers, and what it means for 2026.
Key Sales Highlights: What the Numbers Reveal
Mercedes-Benz India’s CY2025 tally highlights resilience amid challenges like high import duties and competition from BMW and Audi.
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Top Performers by Model: The GLC SUV led with over 4,500 units, capturing 24% of sales—its sleek design and tech-loaded cabin appealed to urban millennials. The GLE followed at ~3,200 units, boosted by long-wheelbase variants for Indian roads.
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EV Surge: Electrified vehicles (hybrids + EVs) hit 25% market share (4,752 units), up from 18% in 2024. The EQS (1,200+ units) and Maybach EQS SUV shone, with India becoming Mercedes’ 3rd largest EV market globally.
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Festive Boom: Q4 sales jumped 32% YoY, driven by Diwali discounts and weddings—GLC and GLE alone accounted for 45% of December’s 5,200 units.
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Global Ranking Leap: India overtook South Korea (18,900 units) and Italy (18,300 units), trailing only USA (92,400), Germany (74,200), and China (65,500). This marks a 42% growth from 2021’s 13,400 units.
These figures, per Mercedes-Benz India MD Santosh Iyer, stem from a 21% SUV share (up from 15% in 2024), aligning with India’s SUV obsession—national sales hit 2.5 million units in 2025.
Why the Slight Dip? Challenges in Context
A 558-unit drop isn’t alarming; it’s strategic recalibration. Global supply chain easing post-2024 helped, but local factors pinched.
Core Reasons Behind the 3% Decline:
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Launch Pauses: No major debuts until Q4 (e.g., facelifted CLA in Jan 2026). Competitors like BMW’s X7 stole spotlight.
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Economic Pressures: Inflation curbed discretionary spends; luxury segment grew only 8% vs. 12% in 2024.
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Inventory Management: Mercedes cleared 2024 stock early, avoiding discounts that erode brand prestige.
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Tariff Realities: 100-110% import duties inflate prices—S-Class starts at ₹1.77 crore vs. $115K in USA.
Despite this, Mercedes held 35% luxury market share (vs. BMW’s 28%, Audi’s 20%), per FADA data. Example: In Q3, Mercedes sold 4,600 units amid monsoons, outpacing Audi’s 3,200.
Global Top 5 Entry: India’s Luxury Ascendancy
India’s jump to #5 globally (from #9 in 2024) mirrors a 15% CAGR in luxury sales since 2020. Affluent households (earning >₹30 lakh/year) swelled to 10 million, fueling demand.
Comparative Global Snapshot (CY2025):
| Market | Units Sold | YoY Growth | Key Driver |
|---|---|---|---|
| USA | 92,400 | +12% | SUVs like GLE |
| Germany | 74,200 | -2% | Domestic edge |
| China | 65,500 | -5% | EV rivalry |
| UK | 28,100 | +5% | Electrified push |
| India | 19,007 | -3% | SUV + EV mix |
India’s edge? Localized production at Pune (GLC, GLE) cuts costs 20-30%. Contrast with South Korea’s dip due to EV subsidies ending.
EV and Future-Proofing: The Game-Changer
Mercedes’ “Electric Only by 2030” vision thrives in India. 2025’s 4,752 electrified units made it the top luxury EV seller, ahead of BMW.
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Standouts: EQS 450+ (range 857 km) sold 800+ units; EQE SUV gained via chauffeur-friendly features.
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Charging Network: 10,000+ points by 2025 (Mercedes + partners) eased range anxiety.
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Policy Boost: FAME-III subsidies and 5% GST on EVs lured buyers.
Horizons for 2026: CLA EV (launch Q1, ₹50 lakh), GLE PHEV, targeting 50% electrified sales.
Competitor Check: Mercedes Leads the Pack
In India’s ₹1.5 lakh crore luxury pie:
Vs. Rivals (2025 Sales):
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BMW: 18,650 units (-1%), strong on 5 Series.
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Audi: 8,200 units (-10%), Q8 success but EV lag.
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Volvo/JLR: ~6,000 combined, XC90/XE shine.
Mercedes’ win? Superior service network (250+ touchpoints) and resale value (GLC retains 70% after 3 years).
Outlook: 2026 Targets and Strategies
Mercedes eyes 22,000 units in 2026, banking on:
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10+ Launches: CLA, E-Class LWB, GLC Coupe.
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Price Aggression: Sub-₹50 lakh EVs.
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Tier-2 Expansion: New dealerships in Jaipur, Lucknow.
As Iyer noted, “India is our growth engine.” With GDP at 7%, luxury could hit 1.2 lakh units nationally by 2027.
Mercedes-Benz India’s 2025 story isn’t decline—it’s ascent. Cracking the global top 5 signals India’s clout, blending heritage with electrification. For buyers, it’s prime time: Festive deals linger into 2026.
Data: Mercedes-Benz India CY2025 report; SIAM/FADA. Images via official sources.