Pune, Jan. 14 -- German carmaker Mercedes-Benz will stick with top-end luxury cars and won't chase volumes in India even as its leadership in the domestic market faces intense challenge.

Mercedes sales in India declined 3% to 19,007 in 2025, remaining the largest seller of luxury cars priced above Rs.50 lakh. While it continued its decade-long run at the top, German peer BMW closed the gap with 14% growth to 18,001 units during the year.

Still, Mercedes will not join the race to sell more entry-level luxury cars in a bid to chase volumes, Santosh Iyer, managing director and chief executive at Mercedes-Benz India, said in an interview.

India records around 50,000 to 52,000 luxury car sales annually, with Audi and Jaguar Land Rover compe...