BMW India has outpaced rival Mercedes-Benz India in luxury car registrations for the first quarter of calendar year 2026, driven by new product launches and a growing electric vehicle segment, even as the overall luxury car market remains largely flat.
Photograph: Kind courtesy Adrian Maur/Pixabay
Key Points
- BMW India registered 4,944 units in Q1CY26, an 11 per cent year-on-year increase, surpassing Mercedes-Benz India’s 4,863 units.
- The overall luxury car segment in India remained largely flat in Q1CY26, with total registrations at 13,336 units.
- BMW’s strong performance is attributed to new product introductions, a broader portfolio, and targeted financing initiatives.
- BMW has also expanded its market footprint beyond traditional metros and strengthened its lead in the luxury EV segment, registering 1,033 EVs in Q1CY26.
- Despite Q1 results, Mercedes-Benz India sold 859 units more than BMW Group India for the full FY26, reaching 18,160 units.
Luxury carmaker BMW India managed to pull slightly ahead of rival Mercedes-Benz India in quarterly registrations, reflecting a gradual shift in the competitive landscape, even as the country’s luxury car market largely remained flat in the first quarter of calendar year 2026 (Q1CY26).
Q1CY26 Performance Overview
According to VAHAN data, BMW India registered 4,944 units during the January-March period, marking an 11 per cent year-on-year (Y-o-Y) increase.
In comparison, Mercedes-Benz India reported that 4,863 units were registered, with volumes remaining broadly flat over the same period.
The overall luxury car segment showed minimal growth, with total registrations at 13,336 units in Q1CY26, compared with 13,322 units a year ago, showing a demand plateau at the top end of the passenger vehicle (PV) market.
BMW’s Strategic Growth
BMW’s performance builds on a strong base from 2025, when the company recorded its highest-ever annual sales of 18,001 units, growing 14 per cent Y-o-Y.
The momentum appears to have carried into the current year, supported by a combination of new product introductions, a broader portfolio across price points, and targeted financing initiatives.
While Mercedes-Benz has historically dominated India’s luxury car segment, the gap between the top players has gradually narrowed.
The Q1 numbers, though not indicative of a full-year trend, highlight increasing competition driven by product cycles, changing consumer preferences, and deeper market penetration.
BMW has also expanded its footprint beyond traditional metro markets, tapping into demand from emerging cities where a new cohort of affluent buyers is entering the luxury segment.
This shift, coupled with efforts to make luxury vehicles more accessible, has supported growth even as the broader market remains subdued.
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Luxury EV Segment Leadership
In the electric vehicle (EV) segment, BMW has strengthened its lead within the luxury space.
The company registered around 1,033 EVs in Q1CY26, contributing significantly to the segment’s growth.
Total luxury EV registrations stood at 1,484 units during the quarter, reflecting a 21 per cent year-on-year increase.
Mercedes-Benz, meanwhile, recorded approximately 300 EV registrations during the same period.
Both automakers continue to expand their EV portfolios, although adoption within the luxury segment remains gradual.
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Monthly Registration Trends
Monthly data indicates that BMW maintained relatively strong volumes through the quarter, with registrations of 2,040 units in January, 1,284 units in February, and 1,620 units in March.
Mercedes-Benz India’s registrations stood at 1,821 units in January, 1,368 units in February, and 1,348 units in March.
Other luxury carmakers, including Jaguar Land Rover, Volvo, and Porsche, accounted for a smaller share of the segment, reflecting a market that continues to be dominated by the top two players.
However for FY26 Mercedes-Benz India sold 859 units more, reaching 18,160 units, while BMW Group India reported sales of 17,301 units.
- The Q1 numbers for luxury car registrations highlight increasing competition driven by product cycles, changing consumer preferences, and deeper market penetration
- Total luxury EV registrations in Q1CY26 stood at 1,484 units during the quarter, reflecting a 21 per cent Y-o-Y increase
- Other luxury carmakers, including Jaguar Land Rover, Volvo, and Porsche, accounted for a smaller share of the segment
Feature Presentation: Rajesh Alva/Rediff
