Mercedes-Benz India Sets New Sales Record in Q2 FY2025, Driven by GST Boost and Festive Demand

Mercedes-Benz India has reported its highest quarterly sales in September 2025, delivering 5,119 units in the second quarter of the fiscal year. This marks a 36 per cent growth over the same period last year. A significant part of this performance came during the Navratri festival, when the brand sold around 2,500 units in just nine days, its best-ever result for the period. The GST 2.0 reforms, introduced on 22 September, also played a inportant role in this surge by reducing taxes on luxury cars by about six percent, lowering prices and encouraging purchases during a high-demand festive window.

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By offsetting earlier price increases caused by currency fluctuations and rising costs, the new tax structure created a clear incentive for buyers. The change led to increased activity in showrooms, particularly in metropolitan cities, where the luxury car market remains steady.

Sales were spread across both core and top-end segments. Models such as the AMG G63, GLS SUV, and EQS SUV attracted consistent buyer interest, while the Long Wheelbase E-Class, GLC and GLE SUVs formed the bulk of demand, contributing about 60 percent of September’s sales. The LWB E-Class was the highest-selling luxury model for the month, underlining its position in the portfolio. This mix between higher-margin flagship cars and core models helped secure the overall sales success.

Promotional programmes supported demand. Initiatives like ‘Dream Days’, offering flexible instalment structures, and ‘Key-to-Key’, enabling customers to upgrade more easily, were well received. Combined with GST benefits, these campaigns broadened access to the brand’s line-up and maintained momentum despite challenging economic conditions in some areas.

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The company expects continued interest during Dhanteras and Diwali but remains cautious due to currency volatility and supply chain constraints. Certain models, such as the AMG G63, still have long waiting periods. While GST benefits may be short-term, with possible price rises in early 2026, Mercedes-Benz plans to use its SUV range, electric vehicle portfolio, and customisation options to sustain its position in India’s luxury market.