Mercedes-Benz India has closed 2025 with sales of 19,007 units, a 2.85 per cent decline compared to 2024. However, the company says it has posted its best-ever year in terms of revenue, thanks to an aggressive focus on its top-end models.
In contrast, BMW India grew 14 percent in 2025 to record their best ever sales of 18,001 units on the back of a broader entry level portfolio, closing the gap to Mercedes-Benz India which managed to hang on to its position as the market leader in luxury car for the 11-year running.
For BMW, hits like the iX1, which has single handedly made the brand the undisputed leader in the luxury EV market, and entry level models like the 2-series are key sales drivers.
In addition, aggressive deals and discounts by Audi and BMW has triggered a price war which Mercedes Managing Director and CEO, Santosh Iyer, says he will not entertain. “We are very clear. We don’t want get into a price war.” Instead, the focus has shifted to lower volume but more lucrative niches in the luxury car market. Iyer points to an 11 per cent growth in top-end models and a 34 percent jump in AMGs.
“My average selling price per car today is about 1 crore. My top line is growing; if I only chased volume, I would never take the kind of price increases we are taking.”
Iyer also flags the impact of discounting on brand equity and used values. “Imagine the residual value of the selling with this kind of discounting” He maintains that Mercedes’ more disciplined pricing is already visible in the used-car market: “If you see after the GST revision, prices of Mercedes-Benz used cars didn’t crash. A three-year-old car is still getting a bloody good price.”
While full-year revenue numbers are not yet public, the shift to more profitable, higher-end models is already feeding through the P&L. “From a balance sheet perspective, we are growing. Maybe with volumes we are not, but revenues are the best ever,” Iyer sums up.
