Concept:
This reaction is known as Friedel–Crafts Alkylation, where an alkyl group substitutes a hydrogen atom of the benzene ring in the presence of a Lewis acid catalyst such as \(AlCl_3\).
Step 1: Formation of electrophile.
In the presence of \(AlCl_3\), methyl chloride forms a methyl carbocation.
\[
CH_3Cl + AlCl_3 \rightarrow CH_3^+ + AlCl_4^-
\]
Step 2: Electrophilic substitution on benzene.
The methyl carbocation attacks the benzene ring, replacing one hydrogen atom.
\[
C_6H_6 + CH_3^+ \rightarrow C_6H_5CH_3
\]
Step 3: Product formation.
The product formed is Toluene.