Mercedes-Benz India logs record sales as electric vehicle demand outstrips supply

Mercedes-Benz India has crossed 1,000 confirmed orders for the CLA Electric sedan, with waiting periods stretching up to six months and deliveries pushed into March 2027 due to limited supply.

Sales Growth

The strong demand coincides with the company recording its highest-ever January-September sales in India, retailed at 15,190 cars in the first nine months of 2026, which is an 8 percent rise from the previous year. The July-September quarter also set a new record with 5,422 units sold, marking a 6 percent increase over Q3 2025 and a 17 percent jump from the previous quarter. Growth was fueled by new launches, repeat customer purchases for replacements, and high demand for long-wheelbase models like the E-Class, GLE, GLS, and V-Class.

Electric And Diesel Lineup

Electric vehicle sales grew by 16 percent during the January-September period, driven largely by the CLA Electric launched in April. Managing director and CEO Santosh Iyer noted that EV penetration could have been 7 to 8 percentage points higher this year if not for supply-side limits. Mercedes-Benz expects EVs to make up 20 to 25 percent of sales next year if supply issues ease. Meanwhile, diesel model sales climbed to 40 percent of total sales, up from 38 percent, as chief rival BMW shifts away from diesel toward electrified models. In addition, bookings are now open for the GLC Electric ahead of its November 4 launch. This SUV will be built at the Chakan plant, featuring a 94kWh battery and a claimed WLTP range of 715km in its initial 400 4Matic version.

Context

Luxury carmakers in India are increasingly focusing on electric and premium utility vehicles to capture rising demand from affluent buyers. Supply chain constraints often affect imported components and specialized manufacturing runs for high-end vehicles, creating a mismatch between heavy customer bookings and actual delivery timelines.