Mercedes Benz is set to begin local assembly of a second electric vehicle in India due to high demand. Following the successful launch of the Maybach EQS680 SUV, which garnered substantial bookings, the company will now locally assemble the EQS SUV 580. This move aims to boost the presence of electric vehicles in their lineup.
The German luxury automaker Mercedes-Benz has solidified plans to commence local assembly of a second electric vehicle in India, spurred by robust demand and recent bookings totalling INR 400 crore. Last week, the company introduced the Mercedes Benz Maybach EQS680 SUV, priced at INR 2.37 crore (on-road, Delhi), and quickly secured 50 bookings for this premium electric model. Additionally, Mercedes has already received 80 reservations for the electric version of the G Wagon, which is expected to hit the market by late this year or early next. The Mercedes Benz EQG will carry a price tag of INR 3.5 crore. Currently, the total number of orders for both internal combustion engine (ICE) and electric models stands between 1800-2000 units.
In an interview, Mercedes Benz India Managing Director Santosh Iyer highlighted the lack of alternatives for emission-free mobility beyond electrification, emphasizing the importance of introducing electric vehicles at various price points to enhance market penetration. The EQS SUV 580, priced at INR 1.41 crore, will be the next model assembled locally, benefiting from competitive pricing due to reduced customs duties. Local assembly will allow the company to avoid the high customs duty of up to 110% that applies to completely built-up units (CBU), compared to just 15% for vehicles assembled from knocked-down kits (CKD).
With the EQS SUV 580’s introduction, Mercedes now offers six electric vehicles in the Indian market. Iyer noted that with 55% of all vehicles sold in India now being SUVs, launching an electric SUV was a strategic move. He anticipates a steady increase in the penetration of electric vehicles within their portfolio following these launches.
The first half of the current calendar year saw the proportion of electric vehicles in Mercedes’ total sales double to 5% from the previous year. During this period, electric vehicle sales surged by 60%, while overall sales volumes rose by 9% to 9,262 units. India is set to be the only market outside the United States where the EQS SUV 580 will be assembled locally.
