Mercedes-Benz India has reported its first annual sales decline in the last five years, marking a notable shift in the luxury car market. In 2025, the German automaker sold just over 19,000 vehicles, registering a slight drop compared to the previous year.
This slowdown comes at a time when competition in the luxury space has intensified and buyer sentiment has softened due to rising prices and economic uncertainty.
Despite the dip in volumes, Mercedes-Benz continues to lead the Indian luxury car segment, focusing on profitability, premium positioning and long-term brand value rather than chasing aggressive sales numbers.
Reasons Behind the Mercedes-Benz Sales Slowdown
The sales decline was mainly driven by weaker demand in the entry-level luxury segment, where price sensitivity remains high. Rising vehicle prices due to currency fluctuations and higher input costs also impacted buyer decisions.
Additionally, global economic challenges and cautious spending by first-time luxury car buyers played a role. Increased competition from rival brands further added pressure, especially in the Rs 50-lakh price range, affecting overall volume growth for Mercedes-Benz India.
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Strong Top-End Demand and Future Strategy For Mercedes-Benz
While overall sales dipped, Mercedes-Benz witnessed strong growth in its high-end luxury models, including the S-Class, Maybach and AMG range.
These premium vehicles helped the brand achieve record revenue despite lower volumes. Looking ahead, Mercedes-Benz plans multiple new launches, including electric and ultra-luxury models, reinforcing its strategy of prioritising value, exclusivity and profitability over mass-market expansion in India.
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