Mercedes India No 1 Sales: Why It Is Not Chasing Volume

Mercedes-Benz has held India’s luxury car sales leadership since 2015, but the gap with BMW has become much smaller. The company now says retaining the No. 1 volume position is not its priority, which could matter to buyers who care about pricing, resale value and the way luxury cars are sold.

Mercedes Is Not Chasing No 1

Mercedes-Benz India MD and CEO Santosh Iyer has questioned why the company should chase volume leadership just for the sales ranking. His view is that sales should follow the company’s product and customer strategy rather than become the main target.

That is an interesting position after more than a decade at the top. Mercedes has been in India for 32 years and was once No. 3 before eventually taking the lead in 2015.

BMW Gap Fell To 1,736 Cars

The sales numbers show why this discussion is coming up now. In 2015, Mercedes sold 13,502 cars while BMW sold 6,550, leaving a 6,952-unit difference.

By 2025, Mercedes sales were 19,007 units and BMW reached 17,271. That reduced the annual gap to only 1,736 cars. BMW has also moved ahead of Mercedes on Vahan retail registrations in the first half of 2026.

BMW Product Push In 2026

BMW is adding products across areas that are important in the Indian luxury market, including long-wheelbase cars, SUVs and EVs.

• BMW X1 Long Wheelbase has joined the portfolio
• BMW i5 Long Wheelbase is locally produced
• BMW 7 Series has received a new version
• BMW i7 has also received a new version

These additions give BMW more products with which to challenge Mercedes during the second half of 2026.

Mercedes Wants Pricing Discipline

For buyers, the more important part may be Mercedes’ approach to discounts. Iyer says increasing sales through heavy discounting is easy, but it can affect customers who recently paid full price and potentially hurt residual values.

Mercedes is instead looking to maintain pricing discipline, with standardised discounts under its Retail of the Future model. Iyer also says Mercedes remains significantly ahead on revenue because of its product mix and customer profile, even if BMW closes the volume gap.

Do you think luxury buyers should care about the No. 1 sales ranking, or are pricing and resale value more important?