Mercedes-Benz India Expects EVs to Contribute 20-25% of Sales Next Year

Mercedes-Benz India expects electric vehicles (EVs) to account for 20-25% of its total sales next year if vehicle supplies improve. According to the company, demand for its battery electric models is currently higher than availability. The company also said that its EV penetration could have been 7-8% higher this year if adequate supplies had been available.

Santosh Iyer, Managing Director and CEO, Mercedes-Benz India, said supply remains the biggest challenge for the company’s EV business rather than demand. The company has received more than 1,000 confirmed orders for the new CLA BEV, while customers are also waiting for the locally produced EQS SUV. Deliveries of the CLA BEV are currently extending until March 2027.

Mercedes-Benz India battery electric vehicle portfolio grew 16% year-on-year during January-September 2026. Iyer said the current order backlog gives the company confidence that EV penetration could increase significantly as vehicle availability improves. He added that despite some cancellations, several customers are still willing to wait for around six months for their vehicles.

Supply conditions vary across the company EV portfolio. The CLA BEV is witnessing strong global demand, limiting the allocation available for India. In the case of the locally produced EQS SUV, Mercedes-Benz had underestimated the shift in customer demand towards the electric model and is now increasing production. The company expects EQS SUV availability to improve from November-December, while most supply-related issues are expected to be addressed by early next year.

Mercedes-Benz India is also preparing to launch the GLC BEV in India on November 4, further expanding its electric vehicle line-up. Meanwhile, the company sold 15,190 vehicles during January-September 2026, up around 8% from 14,132 units in the same period last year. Q3 sales stood at 5,422 units, up 6% year-on-year and 17% sequentially. Top-End Luxury sales grew 13%, while the Mercedes-AMG portfolio recorded 18% growth during the first nine months of 2026.