Mercedes-Benz India sold 15,190 vehicles through September 2026, marking an 8% growth. However, supply chain shortages limited electric vehicle potential, leaving over 1,000 customers on waitlists. The company is now working to clear backlogs as it targets a 20-25% EV sales share for next year.
Mercedes-Benz India reported its strongest nine-month performance for 2026, selling 15,190 vehicles, an 8% increase compared to the previous year. While this highlights robust demand for luxury cars in India, the growth could have been higher if not for ongoing supply chain hurdles. The company noted that its electric vehicle sales, which grew by 16% in the same period, were held back by availability issues. Management estimates that total electric vehicle penetration could have been 7-8% higher if the company had secured more stock.
Waitlists for premium electric models such as the CLA EV and the EQS SUV currently exceed 1,000 units, with some delivery timelines extending into early 2027. Despite the delay, customer interest remains strong, as many buyers are willing to wait rather than switch to other options. This indicates that the brand's product-market fit remains solid, even though the company cannot currently meet the full demand.
Global factors continue to complicate supply. High demand for electric vehicles in European markets has absorbed a large portion of the production capacity that was initially allocated for other regions. This competition for units is a key reason for the domestic shortage. Additionally, the parent company faces broader global challenges, including high logistics costs and pressure on profit margins, which analysts have noted could affect the group's financial performance for the year.
To maintain balance, the company has leaned on its traditional engine portfolio. Diesel vehicle sales have increased, now accounting for 40% of total sales compared to 38% earlier. This strategy of offering a mix of electric, hybrid, and traditional fuel options has provided a buffer while the electric supply stabilizes.
Looking ahead, the company is prioritizing production ramps to fulfill the current backlog. The upcoming launch of the GLC BEV in November is a critical part of its strategy to reach an electric vehicle sales share of 20-25% next year. Investors and stakeholders will likely watch whether the company can successfully navigate these global supply bottlenecks and improve vehicle availability in the coming quarters.