BMW India Sold 3 Times More Electric Luxury Cars Than Mercedes-Benz in FY26: Audi Nearly Disappears
The luxury EV segment had its best year in FY26, with total sales across all premium brands reaching 5,404 units, up 61 percent from 3,357 in FY25. Within that growth, the numbers are distributed very unevenly. BMW India took 65.45 percent of all luxury EV sales. Mercedes-Benz, the other major German player, accounted for 19.35 percent. The gap between them grew sharply in FY26, having been much closer in FY25 when BMW had 47 percent share and Mercedes-Benz held 34.49 percent.
BMW India sold 3,537 electric vehicles in FY26, up 124 percent from 1,580 units in FY25. Of this, approximately 3,200 units were the iX1 LWB, the locally assembled version of BMW's entry-level electric crossover priced from Rs 51.40 lakh.
The iX1 LWB is built in Chennai under the CKD assembly route, which keeps its price competitive relative to fully imported luxury EVs. That cost advantage, combined with BMW's decision to prioritise the iX1 as a volume driver, is the primary reason for the sales gap.
The concentration of BMW’s EV sales in one model is especially telling. Roughly 3,200 of its 3,537 EVs came from the iX1 LWB, which means more than 90 percent of BMW’s electric volume came from a single product. That is not a weakness in this context.
It shows BMW correctly identified where the luxury EV market currently sits: not at the very top end, but in the relatively more accessible entry-premium zone. A product priced just above Rs 50 lakh, assembled locally, and backed by a strong dealer network is far easier to scale than imported six-figure EVs that remain niche even inside the luxury segment. BMW did not just sell more EVs. It chose the right price band to dominate.
Mercedes-Benz sold 1,047 EVs in FY26, down 10 percent from 1,157 in FY25. It is the only major luxury brand to have sold fewer EVs in a year when the overall segment grew 61 percent. The reason sits in the model mix. Around 20 percent of Mercedes-Benz EV sales came from the EQS SUV, which starts at Rs 1.34 crore. The brand's other EVs, the EQB and EQE, are all priced significantly above the iX1 LWB. Mercedes-Benz does not have a locally assembled EV at a price point that competes with the iX1, and that gap is where the market share went.
This is the key contrast between the two German brands. BMW pushed a more attainable locally assembled EV and turned it into a volume product. Mercedes leaned more heavily on higher-priced models and paid the price in share. In a market as small as the luxury EV space still is, model placement matters enormously.
A difference of Rs 10 lakh to Rs 20 lakh can already shrink the addressable buyer pool. A difference running into several tens of lakhs or more pushes the product into a much smaller niche. Mercedes still has brand strength, but the segment’s growth in FY26 clearly came from buyers entering luxury EV ownership at the lower end of the premium range, not at the flagship end.
Tesla entered the market in 2025 and sold 342 units of the Model Y in its first fiscal year here. That placed it fourth in the luxury EV segment ahead of Porsche, Audi, and Rolls-Royce. The Model Y starts at Rs 59.89 lakh. Tesla's sales came entirely from CBU imports, which means no local assembly cost advantage. Even so, the brand's global recognition and the Model Y's product credentials were enough to establish a meaningful first-year presence.
That is a notable debut because Tesla achieved it without the cost support of local production. A 342-unit first fiscal year may not sound large in isolation, but in a segment that totalled 5,404 units, it amounts to a visible share right away. It also shows there is room in the market for a brand-led EV play even when pricing is not optimised through assembly. The challenge for Tesla from here will be whether it can maintain or grow that number without broader localisation or an expanded model lineup. For now, however, the first-year result is enough to show that premium EV buyers are still willing to choose a globally familiar EV-first brand even at import pricing.
The sharpest decline belonged to Audi, which sold just 17 EVs in FY26 against 131 in FY25, an 87 percent drop. Audi currently has no EVs available to order in the market. The e-tron GT and Q8 e-tron were not replenished after their initial allocation sold through, and the next generation of Audi EVs has not been officially launched with confirmed pricing. Until Audi brings in a product with confirmed availability and competitive pricing, its EV share will remain negligible.
This collapse highlights a basic truth of the luxury EV market: brand prestige alone is not enough if product supply is missing. Going from 131 units to 17 in a year when the overall segment grew 61 percent is not simply a demand issue. It is a pipeline issue. Buyers cannot choose an EV that is not meaningfully available, and dealers cannot build momentum around uncertain allocation. In that sense, Audi did not merely lose share. It effectively stepped out of the active contest for FY26.
Volvo held third with 382 units despite a 5 percent decline. The EX30 at Rs 41 lakh, its most affordable EV, gives Volvo an entry price point lower than most competitors in the premium electric category. Porsche remained stable at 59 units, consistent with the very limited volumes its price points allow.
Taken together, the FY26 numbers show that the luxury EV market is growing, but not evenly. It is rewarding brands with locally assembled or relatively accessible products, punishing brands that remain too expensive or too supply-constrained, and creating early space for new entrants like Tesla. BMW did not just sell more than Mercedes-Benz. It sold more because it aligned product, price, and availability more effectively than anyone else in the segment.