Luxury carmaker BMW India managed to pull slightly ahead of rival Mercedes-Benz India in quarterly registrations, reflecting a gradual shift in the competitive landscape, even as the country’s luxury car market largely remained flat in the first quarter of calendar year 2026 (Q1CY26),  

According to VAHAN data, BMW India registered 4,944 units during the January-March period, marking an 11 per cent year-on-year (Y-o-Y) increase. In comparison, Mercedes-Benz India reported that 4,863 units were registered, with volumes remaining broadly flat over the same period. 

The overall luxury car segment showed minimal growth, with total registrations at 13,336 units in Q1CY26, compared with 13,322 units a year ago, showing a demand plateau at the top end of the passenger vehicle (PV) market.

BMW’s performance builds on a strong base from 2025, when the company recorded its highest-ever annual sales of 18,001 units, growing 14 per cent Y-o-Y. The momentum appears to have carried into the current year, supported by a combination of new product introductions, a broader portfolio across price points, and targeted financing initiatives. 

While Mercedes-Benz has historically dominated India’s luxury car segment, the gap between the top players has gradually narrowed. The Q1 numbers, though not indicative of a full-year trend, highlight increasing competition driven by product cycles, changing consumer preferences, and deeper market penetration.