Anticipating the burgeoning electric vehicle (EV) market in India, luxury car manufacturer Mercedes-Benz is projecting that its EV lineup, encompassing current and future models, will contribute around 25% of its total car sales within the next three years.
This projection signifies a notable increase from the present range of three to four per cent. The company has recently introduced its new petrol/diesel SUV, GLC, in Hyderabad.
The Managing Director and CEO of Mercedes-Benz India, Santosh Iyer, announced plans for the launch of three to four EVs within the upcoming 12 to 18 months in the Indian market. Iyer stated that with each new EV launch, the adoption rate is expected to accelerate.
Over the next three years, the company envisions that a quarter of its sales in India will consist of EVs. Iyer emphasized the convenience of EV adoption for Mercedes-Benz car owners, who predominantly possess charging facilities at home or work, potentially minimizing dependence on public charging infrastructure.
He expressed hope for certain states to provide tax exemptions for EVs. Regarding manufacturing, Iyer highlighted the company’s Pune plant, spread across 100 acres, which has an annual production capacity of 20,000 units that could be expanded to 40,000 units.
The company’s investments in the plant amount to approximately Rs 2,700 crore, with an additional Rs 100 crore invested for the GLC model.
Iyer indicated that the first phase’s 20,000-car production capacity will be achieved soon, and the company aims to reach these numbers in the next two to three years.
Iyer revealed that Mercedes-Benz sold more than 8,500 cars in the first half of 2023 and foresees double-digit growth for the entire year. The newly launched GLC SUV has already garnered over 1,500 bookings nationwide, resulting in a waiting period of approximately four months for new bookings.