Luxury Sales Soar in September
Mercedes-Benz India achieved its highest-ever monthly sales in September 2025, with retail volumes rising 36% year-on-year. The surge came after the government’s GST 2.0 reforms, which reduced the tax on luxury vehicles from 45–50% to a flat 40%, coinciding with the Navratri festive season. Over 2,500 units were sold during the nine-day festival alone, marking the company’s strongest-ever festive performance in India.
CEO Santosh Iyer attributed the surge to pent-up demand since mid-August, as customers postponed purchases in anticipation of the tax cut. He also credited the “Dream Days” campaign, which offered flexible financing options, for driving strong consumer interest. September’s record sales were led by models including the long-wheelbase E-Class sedan and SUVs such as the GLC, GLE, GLS, and AMG G63. The AMG G63, in particular, maintained a waiting period of over six months despite recording its highest monthly sales ever.
Segment Growth and Outlook
While September was exceptional, half-year numbers show modest overall growth. From April to September, Mercedes-Benz India sold 9,357 units, a 4% increase compared to the previous year. Q2 (July–September) saw 5,119 units sold, the company’s best-ever quarterly performance, driven by top-end and core luxury segments. The top-end luxury vehicles, including GLS, S-Class, and Mercedes-Maybach, grew 12% year-on-year, while the core segment, led by the long-wheelbase E-Class, grew 10%. Entry-luxury models like the A-Class and GLA faced tough competition and saw declines. Battery-electric vehicles accounted for 8% of sales, with the EQS SUV recording its best monthly numbers.
Looking ahead, Iyer expressed cautious optimism for the remainder of the festive season, including Dhanteras and Diwali. He noted challenges like rising operational costs and adverse foreign exchange movements but expects consumer sentiment to remain positive. The company emphasized that full-year growth beyond earlier projections will largely depend on demand during the October–December festive quarter, traditionally a peak period for luxury car sales in India.
