Mercedes-Benz, the leading luxury carmaker in India, has achieved a historic milestone this September, marking a record-breaking performance during the Navratri festival. The German automotive giant reported selling one car every six minutes during the festive period, with an average price of Rs 1 crore per vehicle. This surge represents the company’s best-ever performance in the Indian market.

Exceptional Quarterly Performance

The July–September quarter emerged as Mercedes-Benz India’s strongest period yet, with total sales of 5,119 units. This figure slightly surpasses the 5,117 units sold in the same quarter last year. Remarkably, over 2,500 cars—almost half of the quarterly sales—were delivered in the final nine days of the quarter, coinciding with the Navratri festivities.

Mercedes-Benz India’s CEO, Santosh Iyer, attributed this sales spike to the timing of the GST 2.0 auto rate corrections and the brand’s strategic festive offers. “Mercedes-Benz clocked its best-ever September sales owing to an overwhelming customer response following the GST 2.0 reforms, culminating the pent-up demand. We expect this festive buying spirit to continue in October as well, with upcoming festivities including Dhanteras and Diwali, which traditionally witness spirited buying from customers,” Iyer said.

Impact of GST 2.0 on Luxury Car Sales

The revised GST rates, introduced by the 56th GST Council, came into effect on September 22, 2025. Previously, luxury cars were subject to a 28% GST plus a compensation cess of up to 22%, which could drive the effective tax rate as high as 50%. The new regulation implements a flat 40% GST with no compensation cess for large cars and SUVs. This led to substantial price reductions, such as up to ₹25 lakh for the Mercedes-AMG G 63 and Rs 8–10 lakh for SUVs like the BMW X7 and Mercedes GLS.

The GST rate cut coincided with the first day of Navratri, giving a significant boost to customer sentiment. Iyer explained, “The reduction in the GST rates has certainly improved customer sentiment with its appropriate timing; as car prices are increasing owing to macro-economic challenges like adverse forex movement, rising operational cost.”

Navratri Sales Surge

Between September 22 and September 30, Mercedes-Benz sold approximately 270 cars daily, translating to 10–12 cars every hour. This extraordinary demand translated to over 2,500 units sold in just nine days, marking a 36% growth compared to September 2024.

In a press release, Mercedes-Benz highlighted, “The GST 2.0 reforms is reflected in the Navratri Sales, which witnessed 2,500 units retailed in the nine days of the festival, making it the highest ever Navratri sales for Mercedes-Benz in India.”

Luxury Lineup and Consumer Incentives

Mercedes-Benz’s flagship all-electric G580 Edition One, priced at Rs 3.1 crore, has already sold out for the year, with bookings for the next batch now open. To address earlier subdued consumer sentiment, the company launched the ‘Dream Days’ campaign, offering flexible financial solutions. Iyer elaborated on one option: “One of our financial products allows the customers to pay increased EMI once a year. So, basically, he has low EMIs for 11 months and one high EMI.”

Additionally, under the ‘Key-to-Key’ programme, Mercedes-Benz targeted top-end customers, particularly those awaiting the upcoming S-Class. Customers were encouraged to purchase the current model with the assurance of an easy exchange for the new version upon its launch.

Year-to-Date Performance and Future Outlook

In the first six months of 2025, Mercedes-Benz India sold 9,357 units, reflecting a 4% year-on-year increase. The company expects strong sales momentum during the Diwali season, supported by an order bank of approximately 2,000 units.

Looking back, in 2024, Mercedes-Benz registered 12% volume growth compared to the previous year, selling 19,565 units. Despite the festive boost this year, the company anticipates calendar-year growth to remain flat.

Iyer further noted, “We have moved into October with an order bank of close to 2,000 units, and this gives us good confidence for the Dhanteras and Diwali period.”

Final Thoughts

Mercedes-Benz India’s record-breaking performance during Navratri underscores the combined impact of strategic pricing, timely GST reforms, and targeted consumer incentives. With over 2,500 units sold in nine days and a daily sale rate of 270 cars, the luxury carmaker has not only captured the festive market but also set a new benchmark for future quarters. The company remains optimistic about maintaining this momentum into the upcoming Dhanteras and Diwali season, further solidifying its position as India’s leading luxury automotive brand.

With inputs from agencies

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