Mercedes will also consider manufacturing EV batteries and other components locally.
New Delhi:
German carmaker Mercedes-Benz plans to take pole position in India’s luxury electric vehicle market, its country chief told Reuters, to consolidate its title as the top-selling luxury car brand and rival Helped to stay ahead of Tesla.
In India, Mercedes-Benz will launch three new electric cars this year, be the first to assemble a luxury EV, and set up a fast-charging network across the country, Martin Schwenk said in an interview. He said that the company may also manufacture the battery domestically in future.
“Now, we are really starting our aggressive foray into the EV market. Over the next five years, 25% of our sales (in India) will be electric,” Schwenk said. “Our ambition is to lead the market in the power sector as well.”
Mercedes’ penetration came after EV rival Tesla recently shelved plans to enter India due to high import taxes on EVs.
Mercedes will start its push in India with an imported electric model of its AMG EQS 53 4MATIC performance car, which it launched on Wednesday. It will be followed by a locally assembled, electric version of its flagship S-Class sedan, the EQS, and an imported, electric people carrier later this year.
The AMG EQS will have a driving range of 580 km (360 mi) on a single charge and will cost around $307,000 (Rs 24.5 million).
India is largely a small and low-cost car market, with luxury models making up 1% of total annual sales of around 3 million. The luxury EV market is even smaller and hasn’t been tested extensively.
Mercedes, which already sells its imported EQC sport-utility vehicle (SUV) in India, will be the first in the country to assemble a luxury EV, allowing it to price the car at a lower tax rate of 5% over competitors. The reason would allow for competitively priced. Locally manufactured EVs vs 100% tax on imported models.
This will give it an edge over Germany’s Audi and BMW and a clear edge over Tesla.
Schwenk said the 5% tax rate is “considerable incentive” for customers to go electric.
He added that to ease concerns about range, Mercedes will be installing 140 EV chargers across the country, including ultra-fast ones that can be charged up to 80% in 40 minutes by the end of the year.
The company will also consider manufacturing EV batteries and other components locally if it begins selling ‘thousands’ of a single model, although current volumes were too low to justify such an investment, Schwenk said.
“You need a certain scale to understand. I won’t leave that for the future, but at this stage, it’s not part of the plan,” he said.
Globally, Mercedes plans to invest more than 40 billion euros ($40 billion) by 2030 to develop battery EVs.
Schwenk expects India to align with the company’s plans to move to EVs in terms of speed and product launches.
“We will be in line with the global aspiration to transition to electrification because we believe we can be faster, or sometimes even faster, than some other markets.”
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)