BMW Group India has overtaken Mercedes-Benz India in the first quarter of 2026, marking a significant shift in India’s luxury car market. The early months of 2026 highlight an intense battle for leadership, with steady global growth and a clear transition toward electric vehicles (EVs). BMW emerged as the Q1 leader with strong momentum, supported by new product launches and a broadened portfolio, while Mercedes-Benz retained its dominance over the full FY26, maintaining a lead of 859 units overall.

Mercedes-Benz has traditionally dominated the Indian luxury segment, but BMW has steadily closed the gap in recent years. According to VAHAN data, BMW registered 4,944 cars in Q1 2026, reflecting an 11 percent year-on-year increase, while Mercedes-Benz reported 4,863 registrations. The narrowing gap is evident when compared to previous years, where Mercedes led by 1,734 units in Q1 2023 and just 39 units in Q1 2025, before BMW moved ahead by 81 units in Q1 2026.