BIG NEWS: Mercedes-Benz India Records Best-Ever Navratri Sales Driven by GST Reforms
Festive Season Boosts Luxury Car Demand
Mercedes-Benz India has set a new benchmark this Navratri by delivering over 2,500 cars in just nine days. That translates to almost one car sold every six minutes, marking the brand’s best-ever Navratri performance. The surge was fueled by the introduction of GST Reforms 2.0, which cut prices by up to 6%, and strong festive sentiment across luxury buyers in India.
GST 2.0 Reshapes the Luxury Car Market
The recent tax reform replaced the earlier 28% GST plus up to 22% cess with a flat 40% rate on luxury cars and SUVs, resulting in visible price drops across the portfolio. Mercedes-Benz India’s MD & CEO, Santosh Iyer, confirmed that this reform “certainly improved customer sentiment.” The average price of cars sold during Navratri was around ₹1 crore, showing that luxury demand remained resilient despite economic uncertainties.
Record September & Q3 Sales Performance
This Navratri success powered Mercedes-Benz to achieve its best-ever September sales, registering 36% year-on-year growth. The momentum extended into Q3 FY25-26, with 5,119 units sold between July and September — a record for the company. Overall, in the first half of FY26, Mercedes-Benz retailed 9,357 units, marking a solid 4% YoY growth.
Key Models Leading the Growth
Mercedes-Benz witnessed growth across multiple categories:
- Core Luxury (60% of sales): The E-Class LWB, GLC SUV, and GLE SUV set new monthly records. The E-Class LWB retained its crown as India’s best-selling luxury sedan with a 47% YoY increase.
- Top-End Luxury: Cars priced above ₹1.5 crore grew 12% YoY, led by the AMG G63, which clocked record sales despite long waiting lists. Demand was also strong for the S-Class, GLS, Mercedes-Maybach, and EQS SUV.
- Battery Electric Vehicles (BEVs): BEVs posted a 10% growth in Q2, contributing 8% to total sales, driven by the EQS SUV and the limited-run G 580 Edition 1 with EQ Technology.
Outlook: Diwali Optimism with a Cautionary Note
Mercedes-Benz India enters October with a strong order book of nearly 2,000 units, ensuring momentum through Dhanteras and Diwali. However, the company has signaled that currency fluctuations — especially the weakening rupee against the euro — could lead to price hikes in early 2026.
For now, the festive rally combined with policy reforms underlines how “Modinomics” has strengthened luxury car sales, giving a big boost to consumer sentiment and setting up Mercedes-Benz for a strong finish to FY26.
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