The sales of Mercedes helped by a refreshed C-class sedan and redesigned M-class SUV , rose 47 percent to 26,796 in November, topping BMW for a second straight month.
In November BMW's U.S. sales rose to 7 percent that is 21,521.
With November's results, BMW's lead for the year narrowed to 1,582 units over Mercedes. BMW sales have risen 12 percent to 221,073 in 11 months. The U.S. market as a whole is up 10 percent.
12 percent to 219,491 Deliveries of Mercedes vehicles through November rose 12 percent to 219,491 in the U.S.
The two auto manufacturers are vying to replace Lexus, which has been the annual U.S. luxury sales leader for the past 11 years.
"It's going to be a very close race," said Jesse Toprak, an industry analyst with TrueCar.com, a U.S. Web site that tracks auto sales. "Based on the current momentum, I think that Benz has a good chance of winning the race this year."
A March earthquake and tsunami in Japan have not helped Lexus sales this year, restricting supplies of Lexus cars and SUVs to the U.S. market. The brand's year-to-date sales fell 14 percent to 173,197. In November, Lexus increased U.S. deliveries by 6.7 percent to 19,458 units.