Mercedes-Benz India Clocks Record 18,928 Car Sales in FY25; EV Sales Surge 51%

Mercedes-Benz India on Thursday said it recorded its highest-ever annual sales in the country in the financial year 2024-25 (FY25), selling a total of 18,928 units.

This is a 4% increase over the last financial year (FY24), the company said in its official statement.

The surge in sales was largely attributed to robust demand for high-end luxury models, increasing interest in electric vehicles (EVs), and steady performance from the brand’s core lineup.

However, the beginning of 2025 brought a slight setback. In the first quarter of FY25 (Q1), Mercedes-Benz sold 4,775 units—representing a 12% drop compared to Q1 FY24.

This decline in performance was largely driven by weak demand in the lower-end luxury market, which has been struggling with high competition and price-sensitive consumers.

In spite of the slump in the lower-end segment, Mercedes-Benz's upper-end luxury segment posted fabulous growth. The company's highest-end luxury segment—comprising the S-Class, Mercedes-Maybach, EQS SUV, and AMG series—reported a 34% year-over-year sales gain.

These high-end models now contribute over 25% of the company's overall Indian sales, the company said.

Electric vehicle sales were also big, increasing by 51% in FY25. EVs now contribute 7% of Mercedes-Benz India's overall sales.

In its EV offerings, the homegrown EQS SUV was the marque's top-selling electric vehicle. Significantly, in Q1 FY25 alone, EVs accounted for 8% of overall deliveries.

Main models such as the C-Class, GLC, GLE, and the long-wheelbase (LWB) E-Class remained popular in the market.

The LWB E-Class continued to dominate the luxury segment in India, gaining strength from the introduction of the E 450 variant, which increased its popularity.

On the other hand, the lower-end luxury segment saw a sharp 28% decline in Q1 sales this year.

Mercedes-Benz reaffirmed its focus on high-quality, feature-laden vehicles at the expense of cost-cutting strategies. It asserted that it has no intention to water down product features just to compete on price at the lower segment.