TL;DR
India's luxury car market grew in double digits during the first nine months of 2026, with Mercedes-Benz recording its best Q3 sales, driven by new launches and electric models like the CLA Electric.
The luxury vehicle market in India experienced a significant double-digit sales uptick during the first nine months of 2026, reflecting a strong consumer demand for high-end automobiles. Mercedes-Benz emerged as a leader in this segment, reporting its best-ever quarterly sales at 5,422 units in Q3 2026 (July-September) and a total of 15,190 units retailed from January to September 2026, marking an 8% growth compared to the previous year. This growth was fueled by new launches and consistent demand from loyal customers, despite ongoing supply challenges.
Santosh Iyer, Managing Director at Mercedes-Benz India, highlighted that despite capital market volatility, demand remains robust, supported by healthy macro-economic fundamentals like strong GST collections and a growing manufacturing activity index. Electric models, particularly with the introduction of the CLA Electric, played a crucial role in bolstering this growth, with the CLA Electric alone receiving over 1,000 confirmed orders, pushing deliveries into April 2027 due to limited supply.
The demand for long-wheelbase models such as the E-Class, GLE, GLS, and V-Class also significantly contributed to the luxury segment's expansion. The overall growth in the luxury car market indicates a sustained appetite among Indian consumers for premium vehicles, signaling a positive outlook as the festive season approaches.
