India Luxury Car Sales Rise in 2026 as Mercedes-Benz Posts Record Nine-Month Volume

India’s luxury car market continued to grow during the first nine months of 2026. Premium brands benefited from strong replacement demand, new model launches and more buyers moving from mainstream SUVs into luxury vehicles.

Mercedes-Benz reaches a new record

Mercedes-Benz sold 15,190 vehicles in India between January and September 2026, an increase of about 8 percent compared with the same period last year. The July-September quarter was also the brand’s best-ever quarter in India.

Why luxury demand is staying strong

Several factors are supporting the segment. Existing luxury-car owners are upgrading, high-income buyers are choosing larger SUVs, and premium electric models are adding new options for customers who want technology as much as performance.

Luxury buyers are also less sensitive to small price changes than mass-market buyers, although major increases in taxes, interest rates or import costs can still affect demand.

Electric and hybrid models are becoming more important

The premium market is becoming more electrified. Battery EVs and plug-in hybrids are now available across sedans and SUVs, giving wealthy buyers more choices without forcing every customer to move away from petrol immediately.

Supply can still limit sales

Strong demand does not always translate into immediate deliveries. Some imported parts and lower-volume electric models can still face supply limits, which can increase waiting periods even when the overall market is healthy.

What happens next?

The final quarter of the year is usually important for luxury brands because festive demand and year-end buying come together. New electric SUVs, plug-in hybrids and refreshed flagship models should keep showrooms busy through the end of 2026.