Mercedes and BMW split on hybrids in India as luxury EV sales surge

India's top two luxury carmakers diverge on strategy: Mercedes-Benz backs plug-in hybrids as a bridge while BMW dismisses them. BMW EV sales jumped 78% to 2,359 units with EVs at 26% of H1 2026 mix; Mercedes EV share sits at 14% in Q1. A broader mass-market hybrid divide looms amid 40% GST.

— Filed Sat, 11 Jul, 2026, 09:09 IST · Source Mint · Updated

Mercedes-Benz and BMW, India's top luxury carmakers, diverge on hybrids as EV sales surge. Mercedes backs plug-in hybrids as a bridge; BMW dismisses them. A broader mass-market hybrid divide looms amid 40% GST and rising BEV adoption.

Why this matters

Follows record H1 India sales for both Mercedes and BMW, driven by EVs and top-end models. Mercedes logged 9,768 units, up 9%, with premiumisation lifting cars above ₹1.4 crore to 28% of sales.

Retail-brand signals accelerating, up 282500% QoQ.