Upcoming Entry-Level Luxury Cars in India - Audi, BMW and Mercedes

The entry-level luxury car segment in India is gaining huge traction amongst the middle class, thanks to rising disposable income and a significant shift in consumer preferences toward premium experiences. This segment will soon witness the arrival of multiple new models from three German luxury brands. Audi, BMW and Mercedes-Benz will launch their affordable Luxury cars in the Indian market over the period of next 1-2 year. 

Next-gen Audi Q3

Audi will launch the third generation Q3 SUV in the Indian market in 2026. The 2026 Audi Q3 will come with significant changes in terms of styling, features and an upgraded driver assistance features. The SUV will take on the likes of the BMW X1 and the Mercedes-Benz GLA. It is expected to be powered by a 2.0-litre, 4-cylinder, turbocharged petrol engine, paired to a 7-speed DSG automatic gearbox. The SUV will also get Audi’s Quattro all-wheel drive system as standard. 

Next BMW 3-Series

BMW has started testing the next-gen 3 Series on Foreign soil, and is expected to arrive sometime in 2026. The hugely popular sedan will be introduced in both combustion form as the 3-Series and as an electric i3. The new sedan will carry the brand’s Neue Klasse design language. It will have sharper looks, and a narrow-style kidney grille. The BMW 3-Series will be based on the CLAR platform, while the all-electric i3 will use the Neue Klasse architecture. The 3-Series will come with a 2.0L turbo petrol and 2.0L turbo diesel engines. A mild hybrid version could also be introduced in our market. 

New Mercedes-Benz CLA

Mercedes-Benz will launch the new generation CLA sedan in our market in 2026. The new CLA is available in both ICE and electric form. The new model is 35mm longer, 22mm wider and 29mm taller than the previous model, and has a wheelbase of 2790 that’s 61mm longer. The styling of the new CLA is inspired by the CONCEPT CLA, which was showcased to Indian public at the 2025 Bharat Mobility Global Expo. 

The new Mercedes CLA is powered by a new 1.5-litre, 4-cylinder engine paired to an eight-speed, dual-clutch automatic gearbox. This engine comes with 48-volt technology with an electric motor. The electric model is equipped with an 85kWh battery pack. The RWD version is claimed to offer a range of up to 792kms, while the AWD version delivers a range of up to 771kms. 

Next-gen Mercedes GLA

Mercedes-Benz has started testing the next-generation GLA-Class. Scheduled to be introduced in early 2027, the next Mercedes GLA will be based on the same Mercedes Modular Architecture that underpins the CLA. Not just the architecture, the new-gen GLA will share the powertrain options with the new CLA four-door sedan. The next-gen Mercedes GLA will get an electric derivative in the end of 2026, while an AWD version will arrive in 2027. India launch is expected in 2027.

Also See - Top 20 Upcoming SUVs in India in 2025-26