Mercedes-Benz sees EV share rise as luxury buyers embrace more choice

MUMBAI: The luxury lane is no longer running on just one engine. Buyers of premium cars are increasingly mixing electric, hybrid and conventional powertrains, with battery electric vehicles (BEVs) now accounting for 25 per cent of Mercedes-Benz India’s entry luxury portfolio.

The German carmaker shared the figures while unveiling its latest AMG model on Wednesday, highlighting the growing role of electrification across its line-up. BEVs also contributed 22 per cent of the company’s top-end luxury portfolio during the second quarter of 2026, signalling rising acceptance of electric mobility among both first-time luxury buyers and high-end customers.

Despite the momentum, internal combustion engine (ICE) vehicles continue to dominate Mercedes-Benz India’s overall sales mix. During the first half of 2026, petrol-powered vehicles accounted for 58 per cent of total sales, down slightly from 60 per cent a year earlier.

The share of new energy vehicles (NEVs) which include battery electric vehicles and plug-in hybrid electric vehicles (PHEVs)—rose to 15 per cent, compared with 11 per cent in the corresponding period last year. Diesel’s contribution slipped to 27 per cent from 29 per cent.

Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, said the changing sales mix reflects evolving customer preferences rather than a wholesale shift towards electric mobility.

“India’s relationship with performance is fundamentally shifting. Performance is no longer reserved for a weekend or a special occasion. It is becoming a way of life,” Iyer said.

He attributed the trend to improving road infrastructure, the growing popularity of racetrack experiences and changing aspirations among affluent consumers.

According to Iyer, a younger generation of buyers is also redefining the meaning of luxury.

“Luxury today is no longer defined by what people own. It is defined by the experiences they pursue, the passions they follow and the communities they choose to be part of,” he said.

On powertrain choices, Iyer said customers increasingly value flexibility over being tied to a single technology.

“There is a significant shift in the luxury segment towards electrification. But there is still a large part of customers opting for internal combustion engines,” he said, adding that buying decisions are increasingly shaped by individual lifestyles and driving requirements.

He said this reinforces Mercedes-Benz India’s technology-neutral strategy of offering ICE vehicles, BEVs and PHEVs alongside one another.

“We believe our customers should never be forced into a particular technology. They should have the freedom to choose the powertrain that best suits their lifestyle and driving needs. It should not be driven by policy. It should be driven by what our customers would like to have,” Iyer said.

The latest sales mix suggests that India’s luxury car market is becoming less about choosing between petrol and electric, and more about giving buyers the freedom to choose the technology that best fits their lifestyles, a trend that could shape the next phase of premium mobility in the country.