Mercedes and BMW split on hybrids as India luxury EV sales surge
India's top two luxury carmakers diverge on strategy: Mercedes backs hybrids as a bridge while BMW dismisses them. BMW's EV sales jumped 78% to 2,359 units (26% of H1 2026 volume); Mercedes' EV share rose to 14% in Q1FY from 8%. A 40% GST on hybrids clouds the segment even as hybrids are seen rising to 7-8% of PVs by 2030.
Mercedes-Benz and BMW, India's top luxury carmakers, diverge on hybrid strategy as EV sales surge. Mercedes backs hybrids as a bridge; BMW dismisses them as unnecessary. Battle intensifies over pricing, EV lineups and premium positioning in India's luxury market.
Why this matters
Follows record H1 India sales for both Mercedes and BMW driven by EVs and top-end models, alongside Mercedes premiumisation with 28% of sales from cars above ₹1.4 crore. The hybrid split marks a strategic fork.
retail-brand theme accelerating, up 282600% QoQ.