BERLIN--Mercedes-Benz sold nearly 15% more cars in the first quarter from the same period last year, setting the bar high for rivals Audi and BMW in the race for the top premium brand, amid strong demand for its C-Class sedans, sport-utility vehicles and luxury compact cars.

The German the luxury car maker owned by Daimler AG, said on Wednesday that it sold 429,602 cars in the quarter. Mercedes-Benz's sales growth accelerated in March when it sold nearly 16% more vehicles than in the same month last year.