The firm sold 7,500 BMW cars and 361 Mini units in 2016.
"2016 has not been an easy year for the automotive industry and that applies equally to BMW Group India. During the course of the year, developments in the Indian economy and policy framework shook the mechanisms of the auto industry," BMW Group India President (Acting) Frank Schloeder said in a statement.
"Despite a challenging business environment, BMW Group India has increased sales and market share," Schloeder said.
Mercedes-Benz India sold 13,231 units in 2016, marginally down from 13,502 units in 2015 when it toppled compatriot Audi to become the No 1 brand in the country.
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