BMW nears Merc in India, but their electric routes diverge

While BMW is going for aggressive pricing, Mercedes wants to focus on profitability

- Ayaan Kartik [e-mail]

BMW's Chennai plant can produce nearly 18,000 cars a year.

(MINT)

German luxury carmaker BMW is closing in on Mercedes-Benz in India’s luxury car market, but their strategies for the top spot could not be more different.

Mercedes, which currently occupies the No.1 position, is focusing on ultra premium cars as it chases higher profits, although sales have hurt recently. BMW, on the other hand, is snapping on Mercedes’s wheels with aggressive pricing.

Their divergent strategies are reflected in a key growth segment for both the carmakers where the battle’s heating up—the electric vehicle market, where BMW’s least expensive vehicle costs about ₹50 lakh and Mercedes’s about ₹70 lakh.

Mercedes has occupied the top spot in India’s luxury car market for about a decade. But in the first nine months of 2025, its sales in India declined 1.72% to 14,132 cars, as per the latest available data from the company. BMW’s India sales, meanwhile, grew 13% to 11,978 cars.

“BMW wants to expand its base while Mercedes wants to retain the exclusivity [of the brand],” Subhabrata Sengupta, partner at Avalon Consulting, said.