Mercedes-Benz India has shattered its own sales records in September 2025, marking a historic moment for the luxury automaker in one of its fastest-growing markets. Fueled by the festive spirit of Navratri and a strategic reduction in GST rates, the German brand witnessed a remarkable surge in demand, setting new benchmarks for monthly and quarterly performance. With Diwali on the horizon, the company anticipates sustained momentum through October, further solidifying its dominance in Indiaโs luxury car segment.
Record-Breaking Festive Sales
The festive season, kicked off by Navratri on September 22, 2025, aligned perfectly with the Indian governmentโs announcement of revised GST rates. This policy change sparked a wave of consumer enthusiasm, propelling Mercedes-Benz to sell over 2,500 vehicles during the nine-day festival alone. This figure not only represents the highest Navratri sales in the companyโs Indian history but also contributed significantly to its best-ever monthly performance in September 2025.
The surge comes after a brief lull in August, when consumers delayed high-value purchases like cars in anticipation of Prime Minister Narendra Modiโs Independence Day announcement regarding GST reforms. The subsequent tax reduction unleashed pent-up demand, enabling Mercedes-Benz to post an impressive 36% year-over-year growth for September.
Stellar Quarterly Performance
Mercedes-Benzโs success wasnโt limited to a single month. The company delivered 5,119 vehicles in the second quarter of fiscal year 2026 (Q2 FY2026), setting a new record for quarterly sales. Remarkably, Navratri sales accounted for nearly half of this volume, underscoring the festive seasonโs critical role in driving demand.
The brandโs Top-End Luxury lineup, including iconic models like the GLS, S-Class, Mercedes-Maybach, and Mercedes-AMG G63, contributed 25% of the quarterly sales. Electric vehicles (EVs), particularly the EQS SUV, played a notable role, making up 8% of the total volume. In September alone, the GLS, EQS SUV, and G63 achieved their highest-ever monthly sales figures, reflecting strong consumer preference for premium and electrified offerings.
Core Luxury Models Shine
Mercedes-Benzโs Core Luxury portfolio, encompassing global D and E segment models such as the C-Class, GLC, E-Class, and GLE, recorded a solid 10% growth in Q2 FY2026. September marked a new monthly sales record for this segment, with large and executive models collectively accounting for 60% of the companyโs total sales in India. The E-Class, available in a long-wheelbase configuration tailored for Indian buyers, remains the top-selling luxury car in the country, posting an exceptional 47% year-over-year growth in the quarter.
Challenges in Entry-Level Segment
While Mercedes-Benz celebrated success in its premium offerings, the Entry Luxury lineup, which includes compact models like the A-Class sedan and GLA, faced challenges. This segment, representing 15% of total sales, saw a decline due to competition from more affordable rivals. However, Mercedes-Benz views its global C-segment as a vital entry point for new customers, laying the foundation for future upgrades to higher-end models.
Looking Ahead
With the Diwali festive season approaching, Mercedes-Benz is poised to maintain its upward trajectory. The combination of strong brand loyalty, a diverse portfolio spanning luxury and electric vehicles, and favorable government policies positions the company for continued success in Indiaโs dynamic luxury car market.
Also Read – Volkswagen Unleashes Massive Diwali Deals: Save Up to Rs. 3 Lakh on Tiguan, Taigun, and Virtus
FAQs
1. What drove Mercedes-Benzโs record sales in September 2025?
The combination of the Navratri festival and the Indian governmentโs GST rate reduction on September 22, 2025, triggered a surge in demand, resulting in over 2,500 cars sold during the nine-day period.
2. Which Mercedes-Benz models performed best in September 2025?
The GLS, EQS SUV, and Mercedes-AMG G63 recorded their highest-ever monthly sales, while the E-Class led as Indiaโs top-selling luxury car with a 47% year-over-year growth.
3. How significant are electric vehicles in Mercedes-Benzโs India sales?
Electric vehicles, particularly the EQS SUV, accounted for 8% of the companyโs sales in Q2 FY2026, reflecting growing interest in sustainable luxury options.
4. Why did the Entry Luxury segment underperform?
The A-Class sedan and GLA faced stiff competition from more affordable rivals, leading to a sales decline, though this segment remains crucial for attracting new customers.
5. What is Mercedes-Benzโs outlook for October 2025?
With Diwali approaching, Mercedes-Benz expects sustained sales momentum, leveraging the festive season and favorable market conditions to further strengthen its position.
