Here is a write-up on Mercedes-Benz’s record quarterly performance in Q2 FY2026 (in India), based on publicly reported data:
Record Q2 FY2026 in India
- In the quarter ending September 2025 (Q2 FY2026), Mercedes-Benz India achieved its highest-ever quarterly sales, delivering 5,119 units.
- Remarkably, nearly 2,500 of those units were sold in just the nine days of Navratri, demonstrating a strong festive-season boost.
- The monthly performance was equally striking: September 2025 saw a 36 % year-on-year growth—the best monthly figure in the company’s history in India.
What Drove the Surge in Sales
Several factors contributed to this exceptional performance:
1. GST Reforms & Price Impact
Mercedes leadership attributed the improved sales sentiment largely to the implementation of GST 2.0 reforms. Under the revised tax regime:
- Earlier, luxury cars faced 28 % GST plus additional cesses, pushing the total tax burden in the 46–50 % range.
- Under the new system, cars larger than 1.5 L and longer than 4 m are taxed at a uniform 40 %, and the removal of extra cess further reduced effective prices.
These tax changes likely softened buyer hesitation amid rising input costs and favorable timing during festival demand.
2. Strength Across Segments
Mercedes’s growth was not confined to one corner of its lineup. Two segments stood out:
- Top-End Luxury: This segment (comprising models such as GLS, S-Class, Maybach, AMG G63) saw 12 % year-on-year growth and accounted for 25 % penetration of total sales in this quarter.
- Its “Manufaktur / Bespoke” customisation division also contributed heavily: 75 % of the top-end sales were from this bespoke range.
- Core segment (models such as LWB E-Class, GLC, GLE SUVs) delivered 10 % growth for the quarter. Among them, LWB E-Class posted a standout 47 % YoY jump, securing its place as India’s top-selling luxury car in that period.
3. Electric / BEV Momentum
Mercedes’s EV (BEV) portfolio also made inroads:
- BEVs accounted for 8 % of overall sales volume in the quarter.
- The BEV line grew about 10 % year-on-year, led by record sales of the EQS SUV.
- Additionally, a special model—the G 580 Edition 1 with EQ technology—was already sold out for its 2025 allocation, and bookings had opened for further deliveries.
4. Other Momentum Factors
- The festive season effect (Navratri) clearly played a big role, as seen by the spike in sales in just over a week.
- Strong consumer demand across both premium luxury and more “core” models allowed the brand to balance out pressures from rising costs and macroeconomic headwinds.
- Some delay or supply constraints (e.g., waiting periods) were present, yet models like the AMG G63 still set their highest-ever monthly sales despite long lead times (> 6 months).
Broader Context & Caveats
While the Indian numbers are impressive, it’s important to consider the broader global context and underlying challenges:
- Globally, Mercedes-Benz (Cars & Vans) delivered 547,100 cars and vans in Q2 FY2025 (April–June), though that was a 9 % decline year-on-year, largely due to tariff pressures.
- This global drop reflected cautious dealership deliveries in key markets like the U.S. and China, where new import tariffs and trade tensions weighed on wholesale volumes.
- For the Mercedes-Benz Cars division specifically, Q2 2025 unit sales declined to 453,700.
Thus, the Indian performance may be considered an outlier—or at least a bright spot—within a more challenging global landscape.
Outlook & Implications
- Sustaining this growth will depend on factors such as maintaining favorable tax policies, managing costs (especially in a rising-cost environment), and keeping supply chains tight.
- Mercedes will likely continue pressing its BEV lineup, customization (Manufaktur) options, and marquee flagship models to differentiate itself.
- The ability to convert festival season surges into long-term brand loyalty and repeat sales will be key in the Indian luxury market.
- Given the global headwinds from tariffs and macro volatility, localized successes like this one in India help buffer against broader downturns.